Definition of self liquidating debt who is nick jonas dating right now 2016


Basically, a borrower takes out a loan that is used to finance business activities that generate revenue.Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities.Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. See Also: Loan Agreement Collateralized Debt Obligations When is an interest rate not as important in selecting a loan?The company borrows money to buy more materials to take advantage of the increasing demand of the busy season.Then when business slows down the company will have less of a need for borrowed funds to finance short-term assets like inventory accounts – the need for financing will decline as the need for inventory declines.You've found a word that is only available in the Merriam-Webster Unabridged Dictionary.To view the full definition of self–liquidating loan, activate your free trial today.


And this is essentially what is called a self-liquidating loan. “Analysis for Financial Management”, Mc Graw-Hill Irwin, New York, NY, 2007.The term can apply to a company that experiences seasonal fluctuations in business.During the busy season when business is booming the company needs to borrow money to finance short-term assets such as inventory and accounts receivable.Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) The term “self-liquidating loans” is banker slang.


It refers to a loan that is used to generate proceeds that are in turn used to repay the loan.A loan used to finance the purchase of assets intended to be sold within a short period of time.


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