Short term finance means financing for a small period generally less than a year. Short term finance is also known as working capital financing. The main reason for reserving short term finance is the uneven flow of cash into the business, or the changing pattern of business, etc. Thus, short term finance works as a life- line for a business. 

Here are sources of Short term finance:
Trade
Advances, cash credit, overdraft and discounting bills,
Installment credit,
Loans from cooperative banks
Public deposits,
Commercial paper.