Chill!, page-13

mate one more thing.
As a farmer I sometimes signed forward contracts for my grain to get a better price then what would be offered at harvest. the grain buyers were happy because these contracts underwrote their supply contracts. Sometimes we would overspend during the year and 4 to 6 weeks out from havest we would run out of working capital. instead of going to the bank it was easier to go to the grain buyer and get an advance against my contract to be able to harvest my crop.
the grain buyer would oblige but would say I am not a bank and there is a cost to the money I loan you and i can't charge you interest and there are now extra risks for me so we will renegotiate a discount into the contract to cover my cost.
How was this a loan and Gunvors pre payment not?
Pie