More advanced commercial lenders might find it a good refresher. It is also appropriate for small business owners and managers who would like to understand how the bank will be making lending decisions regarding their borrowing needs.
Payment is a key to any loan.
While this is obvious, problems do arise in not having a definite repayment source understood by both lender and borrower. From conversion of assets Mito cash. This source repays loans made for acquisition of those assets, usually inventory. Since the cycle is loan to asset to cash to loan repayment, the loan is said to be self-liquidating. From other sources of external capital, such as refinancing or equity investment.