Self-liquidating loan

(redirected from Self Liquidating Loan)

Self-liquidating loan

Loan to finance current assets. The sale of the current assets provides the cash to repay the loan.

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.
References in periodicals archive ?
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.
A 15 year fix rate self liquidating loan was placed on a 77 unit walk up apartment building located on St.