Computer Science
7 years ago

Improved credit information boosts small firms' access to finance worldwide.

Credit information and firms’ access to finance : evidence from an alternative measure of credit constraints
Chavez Sanchez, Edgar Iván

Paper Summary

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The study looked at how credit information affects businesses' ability to get loans. They used data from surveys and credit reports in 111 countries. The results showed that smaller businesses have more trouble getting credit. Also, having better credit information helps reduce credit problems, especially for smaller businesses, those without audits, or lacking quality certifications.