Trade credits and advances

Financial claims arising from the direct extension of credit by the suppliers of goods and services to their customers, and advances for work that is in progress or is yet to be undertaken, in the form of prepayment by customers for goods and services not yet provided. Trade credits and advances arise when payment for goods or services is not made at the same time as the change in ownership of a good or provision of a service.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union and the Sixth Edition of the IMF's Balance of Payments and International Investment Position Manual (BPM6).