this paper investigates an epq model with the increasing demand and demand dependent production rate involving the trade credit financing policy, which is seldom reported in the literatures. the model considers the manufacturer was offered by the supplier a delayed payment time. it is assumed that the demand is a linear increasing function of the time and the production rate is proportional to ...

Trade credit represents a substantial portion of short-term credit for most firms. A trade credit decision is usually limited to a comparison of the effective cost of trade credit with the annual cost of borrowing. If the cost of not taking the cash discount exceeds the firm’s borrowing cost, the decision is to take the cash discount. This article examines traditional trade credit analysis, and...

Trade credit is an increasingly important payment behavior in real business transactions. To reduce nonpayment risks, a supplier/retailer frequently offers partial trade credit to its credit risk downstream member who must pay a portion of the purchase amount at the time of placing an order and then receives a permissible delay on the rest of the outstanding amount. This paper develops an EPQ m...

While the underlying causal linkage between trade credit and corporate growth has mainly been explored, primary factors that channel relationship are limited. This article hypothesises a nonlinear due to existing theoretical arguments on benefit cost of using suppliers' by corporations enhance growth. Based panel 23,023 non-financial companies from United Kingdom over 10-year period, evidence t...

Firms depend heavily on trade credit. In the years 1980-2004 about 60% of all inputs to production were purchased with a delayed payment. This paper provides evidence that trade credit connection plays signi cant role in the growth stability of customers by reducing the propagation of rm-level shocks from suppliers onto their customers. On average, customer experiences about 20% lower disruptio...

This paper shows that there are endogenous financial constraints arising from trade liberalization. Banks with a large share of loans on firms exposed to competition China suffer an increase in non-performing and reduce their credit capacity. The drop supply affects both directly import-competition China, firm expected expand upon liberalization, economically relevant implications terms employm...