When you need to raise capital you need to find a debt instrument to do so, This is something that corporations and governments have been doing for many decades, Individuals may also use short-term debt instruments to raise funds in a hurry and pay back like a short term loan, These are alternatives to applying for a standard loan, A debt instrument is a tool that is used for precisely this purpose, It’s a type of documented obligation that can help an entity acquire funding in exchange for the legally binding promise to repay the investor or the lender according to terms that have been agreed upon by the contract of the debt, It usually involves the provision of collateral and an agreed-upon schedule of interest-bearing payments with a maturity time frame, According to Investopedia, a short-term debt instrument is one that must be repaid within a year of its origination debt in the current liabilities part of the balance sheet of the company receiving the proceeds, Here are five short-term debt instruments for.

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