Self-liquidating loan(redirected from Self Liquidating Loans)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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