Business, Management and Accounting
5 years ago

Trade credit crucial for SMEs during financial crisis, study finds.

2 views
Journal of money credit and banking
Trade Credit, the Financial Crisis, and SME Access to Finance
Santiago Carbó Valverde, Francisco Rodríguez Fernández, Gregory F. Udell

Paper Summary

During the financial crisis, small businesses had trouble getting loans. Some small businesses relied on trade credit instead of bank loans. This reliance on trade credit increased during the crisis for credit-constrained businesses. Businesses that were not constrained by credit relied more on bank loans than trade credit.

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