Short-term loans that are used for financing temporary increase in inventory are called:

Question

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Short-term loans that are used for financing temporary increase in inventory are typically repaid through the increased sales generated by the inventory. Therefore, they are considered self-liquidating loans. Bridge loans are used to finance a gap in funding until permanent financing can be obtained, while term loans are used for long-term financing needs.

Short-Term Loans That Are Used for Financing Temporary Increase in Inventory