Culver Business Finance

Bank Credit, Trade Credit or No Credit: Evidence from the Surveys of Small Business Finances

Bank Credit, Trade Credit or No Credit: Evidence from the Surveys of Small Business Finances

On 22 June 2009, posted in: SBA by admin | Comments Off

The research study “Bank Credit, Trade Credit or No Credit: Evidence from the Surveys of Small Business Finances” compares firms that use credit (leveraged firms) with those that do not (unleveraged firms), and examines which kind of credit the leveraged firms useā€”bank credit (loans or lines of credit), trade credit (from suppliers), or both. The study finds that three-fifths of the small firms that use credit, use trade credit.

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