Determinants of trade credit: A comparative study of European SMEs

García‐Teruel, Pedro J.; Martínez‐Solano, Pedro

doi:10.1177/0266242609360603

Cited by 157 publications

(152 citation statements)

References 38 publications

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“…In the South, SMEs more often tend to be in the trade-financed SME cluster (17.5%). This result can be explained by the generally longer payment periods in these countries (EPI 2014;Garcia-Teruel and Martinez-Solano 2010;Marotta 2005;Psillaki and Eleftheriou 2014). The finding that 22.6% of SMEs in Northern Europe are trade-financed SMEs is in line with the results of Demirgüç-Kunt and Maksimovic (2001).…”

Section: Country-specific Characteristicssupporting

confidence: 66%

Financing patterns of European SMEs – an empirical taxonomy

2016

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PrefaceSmall and medium-sized enterprises (SMEs) are often called the backbone of the European economy, contributing to job creation and economic growth. In 2013, more than 21.5m of SMEs in the European Union made for more than 99% of all non-financial enterprises, employed almost 89m people (67% of total employment), and generated 58% of total added value. However, access to finance is more difficult for SMEs than for larger enterprises, not only during the current financial and economic crisis, but also on a permanent structural basis, due to market imperfections in SME financing (see Kraemer-Eis, Lang and Gvetadze, 2015, for more details).The European Investment Fund (EIF) supports Europe's SMEs by improving their access to finance through a wide range of selected financial intermediaries. To this end, the EIF primarily designs, promotes and implements equity and debt financial instruments which specifically target SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, and employment.EIF's Research & Market Analysis team has established a research cooperation with the Chair of Management at the University of Trier. This EIF Working Paper is one result of the successful cooperation. A follow-on project, building on the findings of the presented analysis and financially supported by the EIB Institute under the Knowledge Programme, is scheduled to start soon.Even though research in SME financing has strongly increased over the recent years, the financing patterns of SMEs in Europe are still not well analysed. Previous empirical studies have shown that firm-, product-, industry-, and country-specific factors influence the financing of SMEs. However, there are only few studies with a holistic perspective taking into account the interrelationships between different financing instruments and their determinants.The research, presented in this EIF Working Paper, provides an integrative perspective of SME financing patterns by identifying and analysing in detail the use of various financing instruments by SMEs. The findings can support the design and development of SME financing instruments across Europe.We thank the researchers for their important work and the very good cooperation with the EIF. We also thank the participants of a seminar with the researchers, which took place at EIF, as well as the participants of a workshop that took place at the European Central Bank, for fruitful discussions. This EIF Working Paper takes a holistic approach to investigate SME financing patterns in Europe by performing a cluster analysis including 12,726 SMEs in 28 European countries. The results reveal that SME financing in Europe is not homogenous but that different financing patterns exist. The cluster analysis identifies six distinct SME financing types: mixed-financed SMEs, statesubsidised SMEs, debt-financed SMEs, flexible-debt-financed SMEs, trade-financed SMEs and internally-financed SMEs. These SME financing types differ according to the number of fin...

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Section: Country-specific Characteristicssupporting

confidence: 66%

Financing patterns of European SMEs – an empirical taxonomy

2016

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“…Assim, uma boa medida do custo marginal de oportunidade do fornecimento de crédito comercial para firmas sem acesso aos mercados de capitais (caso de MPEs) é o custo do financiamento bancário de curto prazo. Já as firmas com maior capacidade de obter recursos no mercado de capitais, e a um custo menor, garantem mais crédito comercial para seus clientes (García-Teruel & Martínez-Solano, 2010) e, possivelmente, conseguem incrementos de vendas por meio de fidelização dos mesmos. Dessa forma, a oferta de crédito comercial deve estar diretamente relacionada ao custo de captação, e, portanto, é de se esperar que as MPEs brasileiras ofertem menos crédito comercial que as britânicas.…”

Section: Crédito Comercialunclassified

Gestão de capital de giro: um estudo comparativo entre práticas de empresas brasileiras e britânicas

Carvalho

Schiozer

2012

Rev. adm. contemp.

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Este artigo investiga os determinantes do estilo de condução da gestão financeira de curto prazo em micro e pequenas empresas (MPEs), à luz dos fundamentos das teorias de crescimento das firmas por estágios, da visão baseada em recursos, de crédito comercial, de agência e de custos de transação. Os dados obtidos por meio de um survey com dirigentes de 447 MPEs dos estados de Minas Gerais e São Paulo foram analisados por técnicas multivariadas, tendo sido identificados quatro estilos de gestão de capital de giro, que podem ser explicados por variáveis como idade, tamanho e lucratividade da firma. Os resultados foram comparados aos obtidos por pesquisa similar realizada com empresas do Reino Unido (Howorth & Westhead, 2003), e a evidência mostra diferenças importantes: (a) as empresas brasileiras revisam a maioria das rotinas de capital de giro com maior frequência que as britânicas; (b) as MPEs brasileiras ofertam menos crédito comercial que as britânicas. Essas diferenças podem ser explicadas, pelo menos em parte, pelo maior custo do financiamento bancário das firmas brasileiras em comparação com as britânicas.

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“…Moreover, accounts receivable are less liquid than cash, and additional collateral may also improve the capacity to borrow from banks. For European firms, the components of trade credit were analysed by García-Teruel and Martínez-Solano (2010), whose findings, inter alia, confirmed the theory of price discrimination.…”

Section: Theoretical Frameworkmentioning

confidence: 58%