Trade credits and advances (F.71)

5.124 Definition:

The sub-category trade credits and advances (F.71) consists of all transactions in trade credits and advances (AF.71) that is financial claims arising from the direct extension of credit by suppliers and buyers for goods and services transactions and advance payments for work that is in progress or to be undertaken and associated with such transactions.

5.125 Sub-category AF.71 includes:

  1. financial claims relating to the delivery of goods or services where payment has not taken place;
  2. trade credit accepted by factoring corporations except when regarded as a loan;
  3. rent of buildings accruing over time;
  4. arrears concerning the payment of goods and services, when not evidenced by a loan.
5.126 Sub-category AF.71 does not include loans to finance trade credits. They are classified in category AF.4 (see paragraph 5.81. h).

5.127 Trade credits and advances may be financial assets or liabilities of all sectors and the rest of the world.