Liquid capital: An overview of inter‑firm credit between breweries and restaurants in Sweden

Abstract

This chapter is a first attempt to capture the phenomenon of inter-firm credit between breweries and bars and restaurants in Sweden. I ask three interrelated questions: 1. Why do breweries in Sweden provide credit to bars and restaurants? 2. How is this credit designed? 3. What are the effects of this credit relationship? Question 2 is about the design of this credit and focuses on the aspects of risk, cost collaterals and the size of the loan; i.e. the conditions posed by the provider of the credit. Question 3 concerns the effects of this credit relationship by looking at its consequences for the market for breweries as well as for bars and restaurants.