Trade credit terms and payment behavior vary within industries, challenging conventional wisdom.
The study looked at factors influencing how businesses set up trade credit deals and how they pay for them. They used data from surveys to analyze credit terms like payment deadlines and discounts for early payment. The results showed that these terms can vary not just between industries, but also within the same industry. The study also found that some businesses tend to pay late or take cash discounts, challenging common beliefs about trade credit behavior.