The secret life of UK trade credit supply: Setting a new research agenda
Paul , S. and Boden, R. (2008) The secret life of UK trade credit supply: Setting a new research agenda. British Accounting Review, 40 (3). pp. 272-281. ISSN 0890-8389
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Publisher's URL: http://dx.doi.org/10.1016/j.bar.2008.05.007
In this paper we synthesises existing understandings of trade credit, with particular, but not exclusive, reference to the UK. The size, macroeconomic significance, absence of regulation and presence of significant internal risk associated with trade credit suggest that such an enhanced meta-level understanding of this substantial financial market that shadows regular business-to-business operations is imperative. We describe the basic parameters of trade credit operations, explores suppliers’ motivations and imperatives for granting credit to trade customers and investigate what is known about the factors that determine credit periods and terms. This has never been done before and forms a solid ground for further research in the area.