Journal of SME Finance

2020 ◽  
Keyword(s):  
Sme Finance

A more complete conceptual framework for SME finance

2006 ◽  
Vol 30 (11) ◽  
pp. 2945-2966 ◽  
Author(s):  
Allen N. Berger ◽  
Gregory F. Udell
Keyword(s):  
Conceptual Framework ◽  
Sme Finance

scholarly journals Business advice and lending in small firms

2016 ◽  
Vol 35 (3) ◽  
pp. 537-555 ◽  
Author(s):  
Anoosheh Rostamkalaei ◽  
Mark Freel
Keyword(s):  
Empirical Research ◽  
Small Firms ◽  
Supply Side ◽  
Demand Side ◽  
Business Risk ◽  
On Demand ◽  
Sme Finance ◽  
Advice Seeking ◽  
Show Evidence ◽  
The Uk

The literature on lending to small firms has primarily focused on the mechanisms and methods used to evaluate entrepreneurs and businesses and on the types of firms that are more likely to experience unfavourable application outcomes. That is, the focus of most empirical research is on supply-side decisions. The current research attempts to shed some light on demand-side considerations. Drawing upon data collected as the UK SME Finance Monitor (2011–2014), we identify links between entrepreneurs' diligence, business risk and finance-related advice-seeking prior to initiating loan and overdraft applications. The results show evidence of the usefulness of advice in ameliorating, both structural and strategic, business risk and improving the prospects of successful debt applications to banks.

scholarly journals CREDIT QUALITY AND SUBSTITUTION IN SME FINANCE

2021 ◽  
pp. 2150005
Author(s):  
LARS NORDEN ◽  
STEFAN VAN KAMPEN ◽  
MANUEL ILLUECA
Keyword(s):  
Financial Crisis ◽  
Trade Credit ◽  
Sample Selection ◽  
Bank Credit ◽  
Firm Characteristics ◽  
Credit Quality ◽  
External Finance ◽  
Sme Finance ◽  
Cross Country ◽  
Using Data

We investigate whether and how SMEs’ credit quality influences their substitution of bank credit for trade credit. Using data from the five largest European countries, we find that substitution of bank credit for trade credit decreases during the financial crisis, but it decreases significantly less for ex ante low credit quality firms. We control for pre-crisis or lagged firm characteristics including size and external finance dependence, industry effects, sample selection effects and cross-country heterogeneity. We also find that low credit quality firms increase their absolute and relative trade credit usage significantly more than high credit quality firms during the financial crisis. The effects are consistent across countries and stronger for net trade credit borrowers and financially constrained firms. The evidence highlights how credit quality influences demand-side driven substitution in SME finance.

Sign in / Sign up

Export Citation Format

Share Document