Consignment sales function as implicit loans between merchants. [causal]
In addition to the sale of goods on credit, the practice of giving goods on consignment (memorandum), which is common in transactions between wholesalers and retailers, is a way of effecting an implicit loan.
XREF: Connects to economic exchange theory and how commercial practices encode financial arrangements without formal credit instruments.
Lisa Bernestein, Opting out of the Legal Sys…, loc. 122