If you have long-term funding, this means that you will have stability and will not need to look for funding frequently compared to short-term funding. It also means that it will be much easier to plan your income and cash flow as you can recognize what your monthly interest costs will be. Short-term financing does not offer these advantages, since it is necessary to continually renegotiate the conditions of the contract. A disadvantage of long-term financing sources is fixed rates. Once locked into a long-term contract, it may be difficult to get out. If interest rates drop, you won't be able to renegotiate depending on how you set up your financing agreement. You can set up your contract in an approach that allows you to pay upfront if rates drop. You could also set up a variable rate contract where your rate changes based on interest rates. However, this could be terribly dangerous as it will give you a lot of downside risk on interest rates