A short-term loan secured by the borrower's inventory, either directly or via an intermediary, is called a (n) ____________________.
A) Debenture.
B) Line of credit.
C) Banker's acceptance.
D) Banker's acceptance
E) Inventory loan.

Question

Quizplus · Accepted Answer

An inventory loan is a short-term loan secured by the inventory of the borrower. This type of loan provides businesses with the capital needed to purchase products for sale before revenue is generated from sales.

A Short-Term Loan Secured by the Borrower's Inventory, Either Directly