Self-liquidating business loans are designed to take advantage of the normal cash cycle in a business firm.

Question

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Self-liquidating business loans are designed to provide short-term financing for a business to buy inventory, produce goods, and then sell those goods to generate revenue to repay the loan. The loan is structured to be repaid through the normal cash cycle of the business, so it does not create a long-term debt burden. This means that the loan is self-liquidating, and the business can use the loan funds to grow and expand without worrying about long-term debt obligations.

Self-Liquidating Business Loans Are Designed to Take Advantage of the Normal