Pricing in the online invoice trading market: First empirical evidence

Gregor Dorfleitner, Jacqueline Rad and Martina Weber

Economics Letters, 2017, vol. 161, issue C, 56-61

Abstract: In recent years, online invoice trading has gained importance in providing SMEs with short-term financing. In this paper, we present first empirical evidence concerning the question whether the risk of payment difficulties is appropriately reflected in the pricing variables. To this end, we investigate predictors of default of online invoice trading platforms. We analyze both the probability of default and the loss rate and find that the interest rate, the duration and the percentage funded have good predictive power. Furthermore, we show that the pricing mechanism (auction vs. fixed prices) helps to explain defaults on online invoice trading platforms.

Keywords: Invoice trading; Factoring; FinTech; MarketInvoice; Auction; Efficiency; PD forecast (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:161:y:2017:i:c:p:56-61

DOI: 10.1016/j.econlet.2017.09.020

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