Short- term self- liquidating loans are intended to

Question

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Short-term self-liquidating loans are designed to provide funds to cover seasonal peaks in financing caused by inventory and receivable buildups. These loans are typically repaid within a year from the proceeds of the sale of inventory or collection of receivables. They are not meant for long-term financing, such as capital assets or merger/acquisition activity, nor are they intended to recapitalize the firm.

Short- Term Self- Liquidating Loans Are Intended to