Trade Credit and Its Role in Entrepreneurial Finance

Item Type	Book Section
Abstract	Recent research has found evidence of the central role of trade credit in the financing of small businesses. In the United States, for example, trade credit is used by about 60 percent of small businesses; such a large incidence of use is not observed in any other financial service except checking accounts. This article analyzes several aspects of the trade credit agreement. It starts by explaining why trade credit is such an extended phenomenon in spite of the existence of a specialized financial sector. Then it discusses several aspects that make trade credit a unique and not fully contractual arrangement, whose value depends to a great extent on the value of the commercial relationship between the supplier and the buyer. It then focuses on the value of trade credit for entrepreneurial firms.
Authors	Cunat, Vicente & García-Appendini, Emilia
Editors	Cumming, Douglas
Language	English
Subjects	economics
HSG Classification	not classified
Refereed	No
Date	2012
Publisher	Oxford University Press
Place of Publication	Oxford
Series Name	Entrepreneurial finance
Page Range	526-557
Number of Pages	32
Title of Book	The Oxford handbook of entrepreneurial finance
ISBN	978-0-19-539124-4
Publisher DOI	https://doi.org/10.1093/oxfordhb/9780195391244.013.0018
Depositing User	Prof. PhD Emilia García-Appendini
Date Deposited	28 Sep 2012 11:55
Last Modified	23 Aug 2016 11:14
URI:	https://www.alexandria.unisg.ch/publications/216972

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Cunat, Vicente & García-Appendini, Emilia: Trade Credit and Its Role in Entrepreneurial Finance. In Cumming, Douglas (ed.): The Oxford handbook of entrepreneurial finance. Oxford : Oxford University Press, 2012, S. 526-557.

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https://www.alexandria.unisg.ch/id/eprint/216972

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