The Use of Trade Credit by Businesses

Amy Fitzpatrick and Bobby Lien
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Amy Fitzpatrick: Reserve Bank of Australia
Bobby Lien: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2013, 39-46

Abstract: Trade credit is an important source of funding for some businesses, particularly those in the unlisted business sector. Nonetheless, little is known about the use of trade credit owing to the paucity of data. This article explores the use of trade credit, as well as the terms and conditions of trade credit contracts. It also examines the relationship between trade and bank credit. Understanding the nature of this relationship provides useful insights into how changes in financial conditions will affect the overall funding of businesses.

Keywords: Trade credit; accounts payable; accounts receivable; bank credit; trade payment (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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