The Trade Credit and Credit Crunch: a Descriptive Analysis in Europe; Uk and Spain
نویسنده
چکیده
The use of trade credit as a short-term financing is increasing in the last years; large firms use more days to pay small firms than they need, which causes financial fatal consequences to suppliers. These financial problems are not new, but with the credit crunch they are coming up because the massive use of the trade credit impacts negatively on suppliers whose insolvency and bankruptcy risks increase. In this paper we review in a descriptive way the use of trade credit in the credit crunch. The main contributions of the paper are two. Firstly, we show the financial consequences of the use of trade credit, and specifically in credit crisis, and how UK government develop public payment policies to reduce the negative effect of delete payments. Secondly, we study and compare the situation of European countries in terms of payment to suppliers, and in particular the case of UK, but also Spanish case.
منابع مشابه
El Crédito Comercial Y La Crisis Crediticia: Un Análisis Descriptivo En Europa; Reino Unido Y España the Trade Credit and Credit Crunch: a Descriptive Analysis in Europe; Uk and Spain
The use of trade credit as a short-term financing is increasing in the last years; large firms use more days to pay small firms than they need, which causes financial fatal consequences to suppliers. These financial problems are not new, but with the credit crunch they are coming up because the massive use of the trade credit impacts negatively on suppliers whose insolvency and bankruptcy risks...
متن کاملInventory Model for Deteriorating Items with Quadratic Time Dependent Demand under Trade Credits
In this paper, an EOQ model is developed for a deteriorating item with quadratic time dependent demand rate under trade credit. Mathematical models are also derived under two different situations i.e. Case I; the credit period is less than the cycle time for settling the account and Case II; the credit period is greater than or equal to the cycle time for settling the account. The numerical exa...
متن کاملModeling the Causes of Credit Crunch in Iran: DSGE Approach
The financial market plays an important role in any economic system by financing the real sector. Considering the major contribution of the credit market to total financing in Iran, it is clear that inefficiencies and market risks can significantly affect the real sector. In the Iranian economy, in recent years, credit crunch has been created for many reasons. The purpose of this paper is to st...
متن کاملOptimal replenishment and credit policy in supply chain inventory model under two levels of trade credit with time- and credit-sensitive demand involving default risk
Traditional supply chain inventory modes with trade credit usually only assumed that the up-stream suppliers offered the down-stream retailers a fixed credit period. However, in practice the retailers will also provide a credit period to customers to promote the market competition. In this paper, we formulate an optimal supply chain inventory model under two levels of trade credit policy with d...
متن کاملOptimal credit period and lot size for deteriorating items with expiration dates under two-level trade credit financing and back order
In a supplier-retailer-buyer supply chain, the supplier frequently offers the retailer a trade credit of periods, and the retailer in turn provides a trade credit of periods to her/his buyer to stimulate sales and reduce inventory. From the seller’s perspective, granting trade credit increases sales and revenue but also increases opportunity cost (i.e., the capital opportunity loss during cre...
متن کامل