Government-guided funds, as a major instrument for aligning fiscal and financial policy, may play an important role in improving firms’ debt maturity structure. Using a sample of Chinese A-share listed firms over the 2010—2023 period, this study examines whether and through what channels government-guided funds affect corporate short-term loans for long-term investments. We find that government-guided funds significantly reduce such behavior. Mechanism analyses further show that this effect operates through two complementary channels: easing external financing constraints and strengthening internal governance effectiveness, thereby generating an internal-external synergy effect. Cross-sectional evidence indicates that the effect is stronger for smaller firms and firms in the growth stage, consistent with the original policy mandate and targeting of government-guided funds. Overall, the findings highlight the role of government-guided funds in improving corporate financial policies and offer policy implications for optimizing the allocation of government-backed capital and mitigating corporate liquidity risk.