Self-liquidating loan

Self-Liquidating Loan:
A short term commercial loan, usually supported by a lien on a given product or commodities, which is liquidated from the proceeds of the sale of the product or commodities. Example: Loans granted for the growing of crops.

self-liquidating loan
short-term working capital loan that is repaid from the liquidation of inventories.

Self-liquidating loan:
A loan extended to finance the purchase of current assets. The sale of such assets provides the cash to repay the loan.
Français: Prêt auto-amortissable
Español: Préstamo autoamortizable ...

Self-liquidating loan
loan to finance current assets, The sale of the current assets provides the cash to repay
the loan.
Term loan ...

These are self-liquidating loans because the goods being financed will soon be sold. The loan finances a transaction and the transaction itself provides the borrower with the funds to repay the bank.

A tax self-employed people must pay to qualify them to receive Social Security benefits at retirement.
Self-liquidating loan ...

' Such paper was to be limited to short-term self-liquidating loans, bills, discounts, and advances that had appeared in conjunction with the production and marketing of real goods.

Act of 1913 was based in part on the Real Bills Doctrine, which asserted that the creation of money would automatically be directed to real goods and services if the central bank and banks provided credit only to short-term, self-liquidating loans.

See also: Banks, Saving, Life insurance policy, Savings and loan association, Securitization