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.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.Next month, since you owe less money,you pay less interest, which means more of your money goes to the principal.This process continues through the life of the mortgage until you finally make a last payment that contains almost no interest and completely pays off your balance.During the busy season when business is booming the company needs to borrow money to finance short-term assets such as inventory and accounts receivable.
It is called a self-liquidating loan because the proceeds from the sale of the assets provide the capital with which the debtor may repay the loan.This page Self-Liquidating Arbitrage Loans (Source: Andrew Scully) You don't have to be rich to get an Arbitrage Loan. Needless to say, you have probably seen hundreds of offers over the past ten to twenty years - but have you been able to get a Self-Liquidating Loan? Because there's many con artists associated with this investment technique. You can get a loan and make money through some arbitrage and hedging. Its a loan where you profit from the spread between interest rates.One-star words are frequent, two-star words are more frequent, and three-star words are the most frequent.The thesaurus of synonyms and related words is fully integrated into the dictionary.Click on the thesaurus category heading under the button in an entry to see the synonyms and related words for that Blog A must for anyone with an interest in the changing face of language.