Meaning & use

self-liquidating

adjective·Advancedfinancebusiness

Last updated

UK/ˌself ˈlɪkwɪdeɪtɪŋ/
US/ˌself ˈlɪkwɪdeɪtɪŋ/

Meanings

  1. adjectivebefore a nounfinance

    Of a loan or investment: producing enough income to pay itself back without extra funds.

    Grammar: Comes before a noun: a self-liquidating loan. It is not used after 'be' in everyday speech.

    Patterns

    • a self-liquidating loan
    • a self-liquidating investment
    • a self-liquidating project

    The bank offered a self-liquidating loan that would be repaid from the project's own earnings.

    A self-liquidating investment pays for itself over time, so the company needs no new capital.

    The city used a self-liquidating bond to build the parking garage, paid for by parking fees.

  2. adjectivebefore a nounbusiness

    Of a business activity or asset: naturally coming to an end by turning into cash or paying off its own costs.

    Grammar: Used mainly in business writing before a noun: a self-liquidating asset.

    Patterns

    • a self-liquidating asset
    • a self-liquidating venture

    The venture was self-liquidating: after two years, the equipment was sold and the accounts closed.

    They preferred self-liquidating assets that could be turned into cash quickly.

Common combinations

self-liquidating loan
The farmer took out a self-liquidating loan to buy seeds, repaid after harvest.
self-liquidating project
The bridge was a self-liquidating project funded by tolls.
self-liquidating bond
The city issued a self-liquidating bond for the new water system.
self-liquidating investment
A self-liquidating investment returns its cost through the income it generates.

Synonyms and how they differ

self-financing
Self-financing means paying for itself from its own income, but it does not always mean the original loan is fully repaid.
self-sustaining
Self-sustaining means able to continue without outside help; self-liquidating focuses on paying back a specific debt or cost.

Word family

liquidate verb
To close a business or turn assets into cash.
liquidation noun
The process of closing a business and selling its assets.

Commonly confused: self-liquidating or self-liquidating?

self-liquidating vs self-liquidating

Not to be confused with 'liquidating' alone, which means closing a business. The 'self-' part means the thing pays for itself.

Practice

A ______ loan is one that is repaid from the profits of the project it finances.

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