Liquidating trade

20-Jun-2017 18:39

A self liquidating transaction is one that carries the mechanism for it’s own repayment (or liquidation).Basically, you can finance your accounts receivable from credit worthy customers.And as a small business, you can either work with it or .This can put you in a difficult position, especially if your company does not have the resources to offer 30 day terms.

The company borrows money to buy more materials to take advantage of the increasing demand of the busy season.

In trading, Net Liquidation Value is total trade equity plus net option value, on a marked-to-market basis.