The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets' income generation.These loans are intended to finance purchases that will quickly and reliably generate cash) Some of the banks, which do not have a large capital base or large number of longer maturing deposits, like to deploy a substantial portion of funds in short-term, self-liquidating loans to businesses. The main purpose of the bank provides the short term lending is to maintain the Regulatory Liquidity Asset Ratio and3 days stress test.The real scam is: BUYING THE BOOK THEY SELL YOU FOR OR MORE WHICH TELLS YOU ABOUT SELF-LIQUIDATING LOANS AND THEN SCAMMING YOU FOR THE APPLICATION FEE FOR THE LOAN.This is the scam, but you'd have to be a REAL sucker to think that some bank was going to give you a loan for 0 million.
According to their promoters, there are five simple steps to building a huge fortune in a couple of days: Well, this is how is supposed to work anyhow. It doesn't, for obviously as you can see above there are several critical flaws -- probably the most important being that nobody is going to loan you from 0 million to 0 million unless you're Bill Gates or some lesser billionaire, or a publicly-traded corporation with lots of assets to seize if you default. Just walk into your local major bank and tell them you would like to take out a 0 million loan; and don't mind that jacket they give you with the long sleeves, they're just being courteous.
If it cannot, even if granted up to two years moratorium on payments for start-up projects, then your loan request will likely be turned down by most any bank.
If you have your own lending bank that will accept our AA rated bank collateral as a guarantee of their principal amount, then you are nearly there.
This bond matures in 10 years to the face amount of the “gross” loan amount, and at maturity pays off the principal of the loan for you.
A Specimen copy of the Bond is available upon request.
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.