TY - JOUR

T1 - Trade credit, the Financial Crisis and Firms Access to Finance

AU - Carbo-Valverde, S.

AU - Rodriguez-Fernandez, F.

AU - Udell, G.F.

N1 - "This is the peer reviewed version of the article which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/jmcb.12292/full. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving."

PY - 2016/1/19

Y1 - 2016/1/19

N2 - We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the credit crisis. Using firm level panel data on over 40,000 Spanish SMEs we find that credit constrained SMEs depend on trade credit, but not bank loans, to finance capital expenditures and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on banks loans not trade credit. Overall, this suggests substitution between bank loans and trade credit that is conditional on the level of financing constraints and is more intense during the crisis

AB - We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the credit crisis. Using firm level panel data on over 40,000 Spanish SMEs we find that credit constrained SMEs depend on trade credit, but not bank loans, to finance capital expenditures and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on banks loans not trade credit. Overall, this suggests substitution between bank loans and trade credit that is conditional on the level of financing constraints and is more intense during the crisis

U2 - 10.1111/jmcb.12292

DO - 10.1111/jmcb.12292

M3 - Article

VL - 48

SP - 113

EP - 143

JO - Journal of Money, Credit and Banking

JF - Journal of Money, Credit and Banking

SN - 1538-4616

IS - 1

ER -