Both, self-liquidating loans and lines of credit are used to finance the purchase of machinery and equipment.

Question

Quizplus · Accepted Answer

Self-liquidating loans are typically used for short-term financing needs, such as inventory purchases or financing accounts receivable, not for long-term investments like machinery and equipment. Lines of credit can be used for a variety of purposes, including the purchase of equipment, but they are not specifically designed for this purpose like term loans or equipment financing loans are.

Both, Self-Liquidating Loans and Lines of Credit Are Used to Finance