Non-current and current receivables recognized in Volvo Group's customer financing operations.

Sources of estimation uncertainty

Non-current customer-financing receivables
Allocation of non-current customer-financing receivables Dec 31, 2012 Dec 31, 2011
Installment credits 19,314 17,457
Financial leasing 21,115 22,454
Other receivables 727 707
Non-current customer financing recivables as of December 31 41,156 40,618

The effective interest rate for non-current customer-financing receivables amounted to 6.31 % as of December 31, 2012.

Non-current customer-financing receivables maturities
Current customer-financing receivables
Allocation of current customer-financing receivables Dec 31,
2012
Dec 31,
2011
Installment credits 10,884 11,079
Financial leasing 13,748 11,425
Dealer financing 14,079 13,820
Other receivables 1,122 1,757
Current customer financing receivables as of December 31 39,833 38,081

The effective interest rate for current customer-financing receivables amounted to 6.06% as of December 31, 2012.

Credit risk in the customer-financing operations
 
Customer-financing receivables Dec 31, 2012 Dec 31, 2011
Customer-financing receivables gross 82,080 79,849
Valuation allowance for doubtful customer-financing receivables (1,091) (1,150)
   Whereof specific reserve (258) (374)
   Whereof other reserve (833) (776)
Customer-financing receivables, net 80,989 78,699
Customer-financing receivables (days/MSEK) Dec 31, 2012   Dec 31, 2011
payments due Not due 1-30 31-90 >90 Total   Not due 1-30 31-90 >90 Total
Overdue amount - 407 331 404 1,142   - 391 230 648 1,269
Valuation allowance for doubtful customer financing receivables (64) (42) (43) (109) (258)   (99) (63) (40) (172) (374)
Customer-financing receivables, net book value (64) 365 288 295 884   (99) 328 190 476 895

The table above presents overdue payments within the customer financing operations in relation to specific reserves. It is not unusual for a receivable to be settled a couple of days after its due date, which impacts the age interval of 1-30 days.

Change of valuation allowance for doubtful customer-financing receivables 2012  2011
Valuation allowance for doubtful customer-financing receivables as of December 31, preceding year 1,150 1,325
New valuation allowance charged to income 835 910
Reversal of valuation allowance charged to income  (252) (250)
Utilization of valuation allowance related to actual losses (575) (821)
Translation differences (67) (14)
Valuation allowance for doubtful customer-financing receivables as of December 31 1,091 1,150
The total contractual amount to which the overdue payments pertain are presented in the table below. In order to provide for occurred but not yet identified customer-financing receivables overdue, there are additional reserves of 833 (776). The remaining exposure is secured by liens on the purchased equipment and, in certain circumstances, other credit enhancements such as personal guarantees, credit insurance, liens on other property owned by the borrower etc.

Collaterals taken in possession that meet the recognition criteria amounted to 200 (412) as of December 31, 2012.
   
 Customer financing receivables Dec 31, 2012   Dec 31, 2011
 total exposure Not due 1-30 31-90 >90 Total   Not due 1-30 31-90 >90 Total
Customer financing receivables 72,068 7,221 2,161 630 82,080   70,085 6,828 1,971 965 79,849

Concentration of credit risk
Customer concentration
The ten largest customers in Customer Finance account for 6.2 % (5.6) of the total asset portfolio. The rest of the portfolio is pertinent to a large number of customers. This way the credit risk is spread across many markets and among many customers.

Concentration by geographical market
The adjacent table discloses the concentration of the customer-financing portfolio divided into geographical markets.

Geographic market, percentage of customer-financing portfolio (%).

Read more about the Volvo Group’s overall description credit risks in Note 4, Financial-risk management.

Read more about Volvo Financial Services’ trend during the year.