Self liquidating debt
For example, a company may issue a self-liquidating bond to pay for its inventory, which it intends to quickly sell.It is called a self-liquidating bond because the proceeds from the sale of the assets provide the capital with which the issuer may repay the bond.You don’t have to worry about slow payments and their negative effects on your working capital position This solution is available to small businesses that work with credit worthy commercial or government clients.It’s important that your invoices have solid credit because that is the asset that secures the transaction.
The first payment is usually for 80% of the invoice.
A loan used to finance the purchase of assets intended to be sold within a short period of time.
For example, a company may use a self-liquidating loan to pay for its inventory, which it intends to quickly sell.
This makes accounts receivable factoring and ideal solution for companies that have working capital problems and need quick financing.
A bond used to finance the purchase of assets intended to be sold within a short period of time.
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Most commercial clients demand net 30 day terms as a condition of working with your business.