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The secret life of UK trade credit supply: Setting a new research agenda

Paul, Salima; Boden, Rebecca

Authors

Salima Paul

Rebecca Boden



Abstract

Trade credit management represents an important strategic opportunity for firms to enhance performance, liquidity and profitability. This paper synthesises existing understandings of trade credit, with particular (but not exclusive) reference to the UK, with a view to identifying a research agenda in this field. 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. The paper synthesises what is known about the basic parameters of trade credit operations, suppliers' motivations and imperatives for granting credit to trade customers and the factors that determine credit periods and terms. We identify where further research would advance understanding in this area. © 2008 Elsevier Ltd. All rights reserved.

Citation

Paul, S., & Boden, R. (2008). The secret life of UK trade credit supply: Setting a new research agenda. British Accounting Review, 40(3), 272-281. https://doi.org/10.1016/j.bar.2008.05.007

Journal Article Type Article
Publication Date Sep 1, 2008
Journal British Accounting Review
Print ISSN 0890-8389
Electronic ISSN 1095-8347
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 40
Issue 3
Pages 272-281
DOI https://doi.org/10.1016/j.bar.2008.05.007
Keywords trade credit, trade credit management, credit terms, credit policies, further research
Public URL https://uwe-repository.worktribe.com/output/1021015
Publisher URL http://dx.doi.org/10.1016/j.bar.2008.05.007




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