A self-liquidating loan is preferable to a bank because it generally provides them with a higher return.

Name: A self-liquidating loan is preferable to a bank because it generally provides them with a higher return.
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A self-liquidating loan is preferable to a bank not because it provides a higher return, but because it is structured to be repaid from the proceeds of the asset it is used to finance, reducing the risk of default.

A Self-Liquidating Loan Is Preferable to a Bank Because It