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Author Question: What does a self-liquidating bank loan mean? (Read 24 times)

ARLKQ

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Question 1

This kind of financing requires the firm to pledge its accounts receivables to the bank as collateral for the loan.
◦ Inventory financing
◦ Sales financing
◦ Receivable financing
◦ Liquidation financing

Question 2

What does a self-liquidating bank loan mean?
◦ The loan pays of itself.
◦ The loan is received in cash only.
◦ The loan is used to purchase assets that are worth more than the loan.
◦ The loan is used to finance an asset that will pay off the loans.


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Marked as best answer by ARLKQ on Apr 25, 2021

Ahnyah

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ARLKQ

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


lcapri7

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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