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Asset-Conversion Loan

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Definition of 'Asset-Conversion Loan'

A short-term loan that is typically repaid by converting an asset, usually inventory or receivables, into cash.
Investopedia Says

Investopedia explains 'Asset-Conversion Loan'

For example, let's say the TSJ Sports Conglomerate is short on cash and need cash to pay their employees this month. One option they might explore is trying to get an asset-conversion loan to fill that short-term cash void.

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