A short-term loan granted by a bank to the organizer of a festivity such as a concert, stage play or similar performance. The loan is intended to enable the organizer to cover the expenses incurred in preparation for the festivity. The loan is usually repaid from the proceeds of ticket sales. – Savings banks, in particular, grant event loans because they are able to assess the demand for a particular planned event in a realistic manner. It is not uncommon for them to participate in the advance sale of tickets in their own ticket office. After all, this can attract new customers. – If a certain minimum number of tickets is not sold in advance, the performance can be called off or cancelled. In this way, expenses – for example, for transportation and accommodation for musicians arriving, for heating and lighting a hall – can be reduced. This keeps the risk of default on the short-term loan in check. – See crop support credit, seasonal credit.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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