Klapper, Leora; Laeven, Luc; Rajan, Raghuram - Economics Research, World Bank Group - 2010
, investment grade suppliers. In comparison, early payment discounts seem to be used as a risk management tool to limit the … varying size, investment grade, and sectors. The paper finds evidence in support of four important, and not mutually exclusive … potential nonpayment risk of trade credit. Early payment discounts are generally offered to smaller, non-investment grade buyers …