Question

Example of self liquidating loan in agriculture credit

Answer 1

The revenue generated from selling that inventory would then be used to repay the loan. Self-liquidating loans are not always a wise credit choice for businesses. For example, they do not make sense for buying fixed assets, such as real estate, or depreciable assets, such as machinery or office equipment.

Answer 2

Explanation:

Agricultural Credit is defined as a type of financing used to provide funding for agricultural producers. This may be in the form of letters of credit, loans or banker's acceptance documents.

This is generally used to provide investment from outside resources to the farming sector.