banks like to make short-term self-liquidating, Financial Management

banks like to make short-term self-liquidating

Banks like to make short-term, self-liquidating loans to businesses. Why?

Banks like to be capable to see where the funds are similarly to come from like the borrower is able to use to make the needed loan payments. Short term, self-liquidating loans do this as the borrowed funds are used to purchase assets that produce the needed funds.

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Financial Management: banks like to make short-term self-liquidating

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