Faster alternative to scalar UDF with recursion to walk tree hierarchy?
Let's start with this. Let us know if it looks something like this. Please edit as necessary. I am adding data into the table:

INSERT INTO Customer (CustomerID, ParentCustomerID, IsBillToCustomer)
select  1   ,   0   ,   0   union all
select  2   ,   0   ,   0   union all
select  3   ,   0   ,   0       union all
select  4   ,   1   ,   0   union all
select  5   ,   2   ,   0   union all
select  6   ,   3   ,   1   union all
select  7   ,   1   ,   1   union all
select  8   ,   2   ,   1   union all
select  9   ,   3   ,   1   union all
select  10  ,   1   ,   0   union all
select  11  ,   2   ,   0   union all
select  12  ,   3   ,   0   union all
select  13  ,   1   ,   0   union all
select  14  ,   2   ,   0   union all
select  15  ,   3   ,   1   union all
select  16  ,   1   ,   1   union all
select  17  ,   2   ,   1   union all
select  18  ,   3   ,   1   union all
select  19  ,   1   ,   0   union all
select  20  ,   2   ,   1   union all
select  21  ,   3   ,   1   union all
select  22  ,   1   ,   1   union all
select  23  ,   2   ,   0   union all
select  24  ,   3   ,   0   union all
select  25  ,   1   ,   1   union all
select  26  ,   2   ,   1   union all
select  27  ,   3   ,   1   union all
select  28  ,   1   ,   1   union all
select  29  ,   2   ,   0   union all
select  30  ,   3   ,   0   union all
select  31  ,   1   ,   0   union all
select  32  ,   2   ,   0   union all
select  33  ,   3   ,   0   union all
select  34  ,   1   ,   1   union all
select  35  ,   2   ,   1   union all
select  36  ,   3   ,   1   union all
select  37  ,   1   ,   1   union all
select  38  ,   2   ,   0   union all
select  39  ,   3   ,   1   union all
select  40  ,   1   ,   1   union all
select  41  ,   2   ,   1   union all
select  42  ,   3   ,   0   union all
select  43  ,   1   ,   0   union all
select  44  ,   2   ,   1   union all
select  45  ,   3   ,   1   union all
select  46  ,   1   ,   1   union all
select  47  ,   2   ,   1   union all
select  48  ,   3   ,   0   union all
select  49  ,   1   ,   0   union all
select  50  ,   2   ,   0   union all
select  51  ,   3   ,   0   union all
select  52  ,   1   ,   0   union all
select  53  ,   2   ,   1   union all
select  54  ,   3   ,   1   union all
select  55  ,   1   ,   1   union all
select  56  ,   2   ,   1   union all
select  57  ,   3   ,   0   union all
select  58  ,   1   ,   1   union all
select  59  ,   2   ,   1   union all
select  60  ,   3   ,   1   union all
select  61  ,   1   ,   0   union all
select  62  ,   2   ,   0   union all
select  63  ,   3   ,   1   union all
select  64  ,   1   ,   1   union all
select  65  ,   2   ,   1   union all
select  66  ,   3   ,   1   union all
select  67  ,   1   ,   0   union all
select  68  ,   2   ,   0   union all
select  69  ,   3   ,   0   union all
select  70  ,   1   ,   0   union all
select  71  ,   2   ,   0   union all
select  72  ,   3   ,   1   union all
select  73  ,   1   ,   1   union all
select  74  ,   2   ,   1   union all
select  75  ,   3   ,   1   union all
select  76  ,   1   ,   0   union all
select  77  ,   2   ,   1   union all
select  78  ,   3   ,   1   union all
select  79  ,   1   ,   1   union all
select  80  ,   2   ,   0   union all
select  81  ,   3   ,   0   union all
select  82  ,   1   ,   1   union all
select  83  ,   2   ,   1   union all
select  84  ,   3   ,   1   union all
select  85  ,   1   ,   1   union all
select  86  ,   2   ,   0   union all
select  87  ,   3   ,   0   union all
select  88  ,   1   ,   0   union all
select  89  ,   2   ,   0   union all
select  90  ,   3   ,   0   union all
select  91  ,   1   ,   1   union all
select  92  ,   2   ,   1   union all
select  93  ,   3   ,   1   union all
select  94  ,   1   ,   1   union all
select  95  ,   2   ,   0   union all
select  96  ,   3   ,   1   union all
select  97  ,   1   ,   1   union all
select  98  ,   2   ,   1   union all
select  99  ,   3   ,   0   union all
select  100 ,   1   ,   0   union all
select  101 ,   2   ,   1   union all
select  102 ,   3   ,   1   union all
select  103 ,   1   ,   1


So, let's run a simple CTE with the data we have. Then from here show us where we are and what we're trying to achieve:

;With Parent(CustomerID, ParentCustomerID, IsBillToCustomer)
As
(
   Select c.CustomerID, c.ParentCustomerID, c.IsBillToCustomer
    from Customer c
    WHERE c.ParentCustomerID = 0
    UNION ALL
  Select c.CustomerID, c.ParentCustomerID, c.IsBillToCustomer
    from Customer c
    inner join Customer p on p.CustomerID=c.ParentCustomerID
)

Select *
  from Parent p


Help us understand the problem. Thanks.