Artikel

Trade credit: A benefit to get, a "must" to give? Motives behind trade credit use in Poland

The paper analyses the motives behind trade use credit in the Polish enterprise sector, based on the results of the 2016 NBP Annual Survey. It verifies the conclusions stemming from trade credit theories regarding both the main motives driving supply and demand for trade credit, as well as explaining the variation in their relevance across companies. The analysis shows that trade credit supply in Poland is driven to a large extent by suppliers' desire to win and maintain their customers: allowing deferred payments creates attractive terms of sale and is often a requirement set by clients with strong bargaining power. These results indicate high willingness of customers to settle their payments on a deferred basis, which could mirror an important fact uncovered by the survey: contrary to the assumptions made in many theories, trade credit proves to be a relatively cheap form of financing for the majority of the surveyed firms. As a consequence, trade credit could be perceived by firms as an attractive, standard tool used in day-to-day business rather than an expensive form of financing used only to address specific problems or achieve other benefits that would outweigh its high costs. Survey results provide some confirmation for this explanation of trade credit demand.

Sprache
Englisch

Erschienen in
Journal: e-Finanse: Financial Internet Quarterly ; ISSN: 1734-039X ; Volume: 13 ; Year: 2017 ; Issue: 4 ; Pages: 54-66 ; Berlin: De Gruyter Open

Klassifikation
Wirtschaft
Corporate Finance and Governance: General
Firm Objectives, Organization, and Behavior: General
Thema
Trade credit
Corporate finance

Ereignis
Geistige Schöpfung
(wer)
Ciżkowicz-Pękała, Magda
Ereignis
Veröffentlichung
(wer)
De Gruyter Open
(wo)
Berlin
(wann)
2017

DOI
doi:10.1515/fiqf-2016-0035
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Ciżkowicz-Pękała, Magda
  • De Gruyter Open

Entstanden

  • 2017

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