The term of an inventory loan is being set to match the exact length of time needed to generate sufficient cash to repay the loan.What type of loan is this?

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The loan described is a self-liquidating inventory loan, as it is designed to be repaid from the proceeds generated by the sale of the inventory. The term of the loan is set to match the time needed to sell the inventory and generate enough cash to repay the loan. This type of loan is commonly used by businesses to finance their inventory needs without creating a long-term debt burden.

The Term of an Inventory Loan Is Being Set to Match