Do trade credits finance long-term investments?

Our model indicates that European firms across all size categories use trade credits to purchase 6%–15% of tangible fixed assets and 14%–30% intangible in the short-run. A long-run target adjustment shows large eventually replace most this temporary credit financing with cheaper sources funds. However, even long-run, small finance 4%–6% asset purchases 5%–10% using credit. Since smaller do not have same access bank as larger firms, is used fund long-term investments Trade therefore a key component capital structure decisions it should be included their weighted-average cost calculations.