Industry clearing

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Under Industry Clearing refers to the payment terms of payment transactions between companies in the non-banking sector , which as prices and delivery conditions are negotiable.

In classic industrial clearing, a supplier with temporary capital requirements negotiates with a buyer who has surplus funds about bringing forward monthly payments . Of course, this only makes sense if the supplier pays less interest as a result than if he took out a short-term bank loan . At the same time, the lender wants to earn more than with a short-term investment in the financial market . The negotiated interest rates are converted directly into discounts.

The more recent industrial clearing describes the trading of overnight money and time deposits between large companies with first-class credit ratings in order to eliminate banks as financial intermediaries and thus save costs. The banks are missing out on two types of business : the credit business with the supplier and the deposit business with the buyer. Industrial clearing is cheaper for the supplier than current account or other types of credit .