Long-term investment generally takes a long time to generate cash flow, while short-term debt will cause short-term cash outflow. In this case, if short-term debts are repaid, production and business activities may stop due to insufficient liquidity; If it cannot be repaid, it will lose its financial credit and be forced to liquidate by the judicial organs.

The problems in investment practice are: everyone knows that this kind of short-term financing can't be invested for a long time, but they think there will be an expected cash inflow to repay the debts due during the repayment period; But no one expected that there was great uncertainty in the changes of market environment and business efforts, and the expected cash flow could not be generated for various reasons. This is the specific situation that short-term loans immediately stop operating activities.

In addition, if there are problems in the investment of long-term loans, there may be room and time for adjustment and efforts, but there is no such opportunity for short-term loans.

Strategic investments are generally long-term investments, and some strategic investments even have low recovery expectations. In this case, short-term loans cannot be used.

Cash flow is the blood of an enterprise.

Short-term loans play a role through the uncertainty of expected cash inflows. Once the loan is used for sunk cost, it has nothing to do with the nature of short-term or long-term investment, but only with the expected cash flow. As long as there is no uncertainty, tragedy will not happen.