Customer loan

A loan granted by a company – i.e. not by a bank – to a customer. It is used by the company granting the loan to secure sales and/or to influence the management of the customer. In this context, it is sometimes also referred to as asset financing (customer retention method of sourcing). – Loan taken out by the supplier from a customer. Particularly in the case of high-quality products, this is used for pre-financing by the manufacturer, who in turn has to make advance payments to the companies supplying him. This is often referred to as the customer pre-finance method of sourcing. — See advance payment. – Cf. Deutsche Bundesbank Monthly Report of October 2012, p. 54 f. (definitions; significance for financing).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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