It refers to a loan that is used to generate proceeds that are in turn used to repay the loan.
Debt Ratio Analysis Debt Service Coverage Ratio (DSCR) The term “self-liquidating loans” is banker slang.
The theory is that you’ll generate enough additional sales of the e Book to cover the cost of giving away those bonus reports. Contrast pricing: Self-liquidating premiums for the 21 century While the concept of self-liquidating premiums in marketing is an old one, Mequoda has adopted a more modern version of it as a Best Practice for pricing multiple subscription products.
The phenomenon of contrast, or decoy, pricing was most famously illustrated by Dan Ariely, a Duke University professor of psychology and behavioral economics, in his book, Irrational Predictability.
For example, let’s assume you have a product, perhaps a downloadable e Book freemium, with a list price of .97.
You’re selling it online at a discounted purchase price of .97.