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Self-liquidating Loans:

: A true self-liquidating loan is a short-term loan made against the liquidation of inventory or the sale of goods.  The typical self-liquidating loan is one made to farmers against the sale of crops.  Anyone can go to their bank to find out about self-liquidating loans, especially if they are looking for short-term capital.  Collection agencies and factors will purchase a company's collectibles, advancing a certain percentage of the total amount due against their ability to collect from the company's debtors.  As collections are made, the debt is liquidated.

: This is not what fraudsters mean when they speak of millions to be made using self-liquidating loans, when they speak of borrowing thousands of dollars that never have to be paid back.  (1) The only ones to make money on these "opportunities" are those who receive anywhere from $10. to $125. for a "special report" telling you all about it.  (2)  All the others make money from up-front fees of one kind or another, or by getting you to give them your bank account number or hand over your securities for "investment".  

Think it through!  First you are told that you can borrow thousands of dollars with no collateral and no credit.  As a matter of fact, the bank doesn't even have to know you.  Then you are told that once the bank hands over the money, you use some of it to purchase LETTERS OF CREDIT or  DEBENTURES that you turn over to the bank as collateral for the loan.  (First the bank gives you the money, then they get their collateral.  If banks did that, they'd all go broke in a week!)  According to the plan,  you don't really get the full loan, only a portion.  The rest is turned over to a SPECIAL INVESTMENT BANKER or a TRADER or a DEALER or a COMMITMENT HOLDER or a GRAND MASTER who invests it into a HIGH-YIELD INVESTMENT PROGRAM using ARBITRAGE.  The proceeds from the investment pay off the loan, give you the balance of the amount you borrowed plus some, and you walk off a millionaire.  And this is all accomplished within a few days or even overnight!  Regardless of how badly you or your company may need money, this loan scenario simply isn't logical, and of one thing you may be absolutely certain - banking is as logical a business as it gets.

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