Poor credit firms struggle to secure trade credit during pandemic fallout.
The study looked at how the COVID-19 pandemic affected trade credit between companies. They found that during the pandemic, companies with poor credit had a harder time getting trade credit from their suppliers. However, companies with good growth prospects and strong relationships were still able to get trade credit, even if their credit wasn't great. This shows that supplier financing depends on the state of the product market and isn't always a reliable alternative to bank loans.