CHAPTER 1

Trade Credit around the Globe

Introduction

Trade credit originates from the development of business relationships, and new motivations for using trade credit have been discovered over time. The flexibility and up-to-date attributes of trade credit in addressing multifaceted needs emphasize its diversified nature. A uniform approach to the analysis would thus overlook the richness of the information that can be extracted from the segmented analysis of firms’ recourse to trade credit. Such information is deemed particularly useful for trade credit financiers in appreciating the potential for growth and the selection of proper financing instruments in a changing environment.

This chapter presents an analysis of trade credit at the international ...

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