The need for such a$$ short$-$term, self$-$liquidating loans often arise$$ because:

A$.$

$$start$-$up businesses$$ and$/$or businesses with a heavy focus on research and development require outside funding to sustain ongoing operations.

B$.$

the amount of the loan and the timing of the repayment are heavily dependent on the credit terms that pertain to both the purchasing and selling functions of the business.

C$.$

of the seasonal nature of a business. The basic source of cash is proceeds from sales to customers. In times of peak$$ sales, there is a lag between the sale and the collection of the$$ cash, yet the payroll and suppliers must be paid in cash right away. When the cash is$$ collected, it in turn may be used to repay the loan.

D$.$

Both b and c$.$