Definition of self liquidating debt
The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets' income generation.
A loan used to finance the purchase of assets intended to be sold within a short period of time.Its popularity waned a bit during the high inflation and interest rates of the early 1980s, but picked back up after interest and inflation rates dropped later in that decade.As of the fourth quarter of 2012, the 30-year fixed rate mortgage, which is self-liquidating, was the most popular type of mortgage in the United States.There are also a number of scams that call themselves "self-liquidating loans".An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally. Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
False economy: if most people now accept that shares do not reflect the true value of a company, why does FRS17 reinforce the idea that they do?
The legal definition of a partnership is generally stated as "an association of two or more persons to carry on as co-owners a business for profit" (Revised Uniform Partnership Act § 101 ).
Early English mercantile courts recognized a business form known as the societas.
Self-liquidating loans are not always a good credit choice.
For example, they do not make sense for fixed assets, such as real estate, or depreciable assets, such as machinery.
Next month, since you owe less money,you pay less interest, which means more of your money goes to the principal.