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A self-liquidating loan is a form of short- before intermediate-term credit that is repaid with money generated by the assets it is used to acquisition.
The repayment schedule after that maturity of a self-liquidating loan are timed headed for coincide with when the assets are expected near produce income. These loans are intended to money purchases that will fast and reliably generate bills. Although few loans are legally named "self-liquidating," the term is commonly second-hand by bankers to demote to lending arrangements with the purpose of work in this good form.
It is also second-hand by some scam artists, as we explain less than. A retail business dominion use a self-liquidating accommodation to purchase extra register in anticipation of the holiday shopping season. Ishaan tharoor wife sexual dysfunction.
Register now or log in to join your professional community. Banks like to be able to see where the funds are likely to come from such that the borrower is able to use to make the required loan payments. Short term, self-liquidating loans do this since the borrowed funds are used to purchase assets that generate the needed funds.