Self-liquidating loans are intended merely to carry the firm through seasonal peaks in financing needs, mainly buildups of accounts receivable and inventory.

Question

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Self-liquidating loans are short-term loans that are designed to finance a company's seasonal needs, such as increases in inventory and accounts receivable. These loans are typically collateralized by the company's assets and are paid back in full once the seasonal peak has passed and the assets have been sold.

Self-Liquidating Loans Are Intended Merely to Carry the Firm Through