Self-liquidating loan
(redirected from Self-Liquidating Loans)Self-liquidating 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.