From the perspective of accounting standards, bill discounting belongs to accounts receivable management, and short-term borrowing belongs to liability business. Bills are generated from trade settlement business, and the term is generally within 1 year, and more often it is about 1-3 months (according to business characteristics). In order to withdraw funds as soon as possible, the ticket holder gets cash at a discount in a financial institution and pays part of the acceptance fee or handling fee. Bill discount is based on the trade background.

Short-term loan is a debt business, and some enterprises have short-term financing needs, so short-term loan financing is adopted. The term of short-term loans generally does not exceed one year, and the interest rate fluctuates within the interest rate range set by the central bank.

From the perspective of credit management, bill discount belongs to cash flow management, while short-term loans belong to credit financing.