Business, Management and Accounting
8 years ago

Trade credit crucial for unlisted businesses, impacts overall funding.

RBA Bulletin (Print copy discontinued)
The Use of Trade Credit by Businesses
Amy Fitzpatrick, Bobby Lien

Paper Summary

Trade credit is a common way for businesses to get funding, especially for those not listed on the stock market. Not much is known about how businesses use trade credit because there isn't a lot of data. This article looks at how trade credit is used, the terms of trade credit contracts, and how it relates to bank credit. By understanding this relationship, we can see how changes in financial conditions affect how businesses get their funding.

Related papers

Business, Management and Accounting
8 years ago

Companies rely on trade credit for short-term financing needs.

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

New study challenges belief that trade credit is inferior funding source

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

Late trade credit payments linked to market power and cost-shifting tactics.

Working Capital
Corporate Governance
Firm Dynamics