Self-liquidating loan

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Self-liquidating loan

Loan to finance current assets. The sale of the current assets provides the cash to repay the loan.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Self-Liquidating Loan

A loan used to finance the purchase of assets intended to be sold within a short period of time. For example, a company may use a self-liquidating loan to pay for its inventory, which it intends to quickly sell. It is called a self-liquidating loan because the proceeds from the sale of the assets provide the capital with which the debtor may repay the loan.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
* $4,000,000 at 4.25% for a 15-year self liquidating loan on a portfolio of five multifamily residential buildings containing a total of 51 apartments and one office, located throughout Park Slope.
The 15 year fixed rate self liquidating loan closed at a rate of 6.25% fixed for the term.
* A 15 year fix rate self liquidating loan was placed on a 77 unit walk up apartment building located on St.