Research article: Trade Credit, the Financial Crisis, and SME Access to Finance
Author: S. Carbó, F. Rodríguez and G. F. Udell
Title: Trade Credit, the Financial Crisis, and SME Access to Finance
Source: Journal of Money, Credit and Banking
Abstract: Mounting evidence indicates that firms, particularly SMEs, suffered from a significant credit crunch during this crisis. We analyze for the first time whether trade credit provided an alternative source of external finance to SMEs during the crisis. Using firm-level Spanish data we find that credit constrained SMEs depend on trade credit, but not bank loans, and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on bank loans but not on trade credit.
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Recommended citation:
Carbó, S., F. Rodríguez and G. F. Udell (2016): "Trade Credit, the Financial Crisis, and SME Access to Finance", Journal of Money, Credit and Banking, 48(1), February, pp. 113-143.