Non self liquidating debt

28 Dec

The revenue generated from selling that inventory would be used to repay the loan.So we are left, as the government is basically lying or misleading us, to try and figure it out.We speculate, we find others who have analytical skills to do what others of us cannot.During the busy season when business is booming the company needs to borrow money to finance short-term assets such as inventory and accounts receivable.The company borrows money to buy more materials to take advantage of the increasing demand of the busy season.

For example, a company may use a self-liquidating loan to pay for its inventory, which it intends to quickly sell.