- Why do many bankers hesitate when you ask them to be a fiduciary for your Self-Liquidating Loan?- Can you in your own home town put together your own Self-Liquidating Loan?There are also a number of scams that call themselves "self-liquidating loans" or "self-liquidating assets." Most of these use the vagaries surrounding 'self-liquidating' to give the appearance of less risk or more security than is justified.
And, in many of these cases, after the law enforcement agencies finally catch up to the con-man, the victims are fearful to open up and tell all about being scammed, or they still are hopeful of receiving their loan.
These loans are intended to finance purchases that will quickly and reliably generate cash.
Although technically, few loans are actually legally named "self-liquidating," this is more appropriately called bankers slang or a feature of a loan or credit facility.
Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities.
The term can apply to a company that experiences seasonal fluctuations in business.