What type of finance might need to be repaid quickly, often within a year?

Short term finance refers to funds that are borrowed for a brief period, typically less than a year, to address immediate financial needs. Businesses often utilize this type of financing to manage cash flow, such as paying for inventory or covering operational expenses, and it is generally easier and faster to acquire than long-term financing.

The nature of short-term finance means that it usually comes with obligations to repay the borrowed amount relatively quickly. This repayment timeline reflects its purpose in assisting with immediate financial requirements rather than long-term investment strategies.

In contrast, long-term finance, capital investment, and fixed assets are associated with longer repayment periods and are intended for substantial projects or long-lasting investments. Thus, they do not align with the characteristic of needing to be repaid quickly. This emphasis on urgency and short duration is what firmly classifies the chosen answer as correct when considering the repayment aspects of various types of business finance.