Self liquidating offer
See Also: Loan Agreement Collateralized Debt Obligations When is an interest rate not as important in selecting a loan?
Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) The term “self-liquidating loans” is banker slang.
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It refers to a loan that is used to generate proceeds that are in turn used to repay the loan.
Basically, a borrower takes out a loan that is used to finance business activities that generate revenue.
This is absolutely legal under international banking rules.
Some procedures must be respected and you have to know what to do and how.