Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis

By N. Wilson, Barbara Summers. 2002

356 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/8dd838572be4e3a3d464d2614a5136d440f91b2d

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Citations in the corpus

Small and Medium-Sized Enterprises Financing: A Review of Literature (2013, background): “Some researchers (e.g. Wilson & Summers, 2002) argue that trade credit can be a costly financing source for SMEs if the buyer delays the payment beyond the specified date in the agreement.”
A review of trade credit literature: Opportunities for research in operations (2013, background): “Estimate s suggest that more than 80% of business-tobusiness transactions in the United Kingdom (UK) are made on credit (Wilson and Summers, 2002), while about 80% of United States (US) firms offer their products on trade credit (Tirole, 2006 ).”
Determinants of trade credit: A comparative study of European SMEs (2010, background): “Empirical evidence about small and medium-sized firms is scarce and focused on Anglo-Saxon countries such as the US (Elliehausen and Wolken, 1993; Petersen and Rajan, 1997) or the UK (Wilson and Summers, 2002).”
Is working capital management value-enhancing? Evidence from firm performance and investments (2015, neutral): “Supplying credit to customers may also affect positively firm sales because it allows for price discrimination, serves as a warranty for product quality, and fosters long-term relationship with customers (see, e.g., Brennan et al. (1988), Long et al. (1993) and Summers and Wilson (2002)).”
On the Determinants and Dynamics of Trade Credit Use: Empirical Evidence from Business Start-ups (2006, neutral): “(1999) and Wilson and Summers (2002).”
Trade credit, collateral liquidation, and borrowing constraints (2010, background): “o 0 ( 25 ) Under Assumption 2, @ F @ 0, which implies that = 0 and proves the lemma.”
Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable (2009, background): “The argument is similar to the sales motive identified by Wilson and Summers (2002), where firms extend sales by offering goods on account in the first instance.”
When do trade credit discounts matter? Evidence from Italian firm-level data (2005, neutral): “…scattered and often dated, with the partial exceptions of Ng et al. (1999) and Danielson and Scott (2000) for the USA and of Pike and Cheng (2001) and Wilson and Summers (2002) for the UK; no study is available on whether the own cost of trade credit is a significant determinant of payment delays.”
Trade Credit, Bank Credit, and Flight to Quality: Evidence from French SMEs (2015, background): “Empirical evidence indicates that when bank credit is scarce, trade credit is often used as a substitute especially for small firms who tend to face credit rationing more often (e.g., Fisman and Love 2003; Nilsen 2002; Petersen and Rajan 1997; Summers and Wilson 2003; Wilner 2000; Wilson and Summers”
Bank lending constraints, trade credit and alternative financing during the financial crisis: Evidence from European SMEs (2014, background): “Similar findings on trade credit determinants emerge from research by Wilson and Summers (2002) and Giannetti et al. (2008) who highlight the importance of demand characteristics and firm creditworthiness in influencing the terms attached to trade credit as well as the ultimate end-usage of such…”