Business, Management and Accounting
3 years ago

Trade credit terms and payment behavior not industry-dependent, study finds.

SSRN Electronic Journal
What Factors Determine Trade Credit Contract Terms and Trade Credit Payment Behavior?
Fatih Altunok, Karlyn Mitchell

Paper Summary

The article examines factors influencing trade credit terms and payment behavior using data from small businesses. They found that trade credit terms can vary within industries, not just across them. Additionally, the study shows that late payments and cash discounts are common payment behaviors in trade credit transactions.

Related papers

Business, Management and Accounting
3 years ago

Trade credit terms and payment behavior not industry-dependent, study finds.

Working Capital
Corporate Governance
Firm Dynamics
1 view
Business, Management and Accounting
4 years ago

Small businesses in the U.S. thrive without traditional credit options.

Working Capital
Firm Dynamics
Corporate Governance
2 views
Business, Management and Accounting
4 years ago

Trade credit contracts cheaper than bank credit, shaping global trade landscape.

Working Capital
Corporate Governance