In general, short-term self-liquidating bank loans are intended to:

Question

Quizplus · Accepted Answer

Short-term self-liquidating bank loans are usually used by companies to finance their seasonal inventory and accounts receivable requirements. These types of loans are typically structured so that the funds borrowed are repaid from the proceeds of the inventory or receivables once they are sold or collected, thus making the loan self-liquidating. Other options listed in the answer choices such as recapitalization, financing mergers and investments in capital assets are usually long-term financing options.

In General, Short-Term Self-Liquidating Bank Loans Are Intended To