The Credit Trap Constraint on Sales through Industrial Distribution Channels

Credit Management: An Examination of Policy Choices, Practices and Late Payment in UK Companies

“…Prior UK credit management surveys are few in number, tend to focus on small/medium-size firms and suffer from low survey response rates (see for example, Benz, 1975;Kirkman, 1977;Goddard and Jay, 1981;Shipley and Neale, 1985;Shipley and Davis, 1991;and Wilson et al, 1995). The trade credit literature has been explored from a variety of economic perspectives.…”

“…From a marketing perspective, credit provision forms part of a product package used to influence the elasticity of demand (Kaplan, 1967;Nidiri, 1969;and Ingves, 1984). It is an important supplier selection criterion, especially where products are otherwise hard to differentiate (Shipley and Davis, 1991;and Deloof and Jegers, 1996). The incremental cash flows arising from the decision to extend credit can offer a valuable asset to the firm (Schwartz, 1974;and Kim and Atkins, 1978).…”