Klapper, Leora F.; Laeven, Luc; Rajan, Raghuram G. - National Bureau of Economic Research (NBER) - 2011
We employ a novel dataset on almost 30,000 trade credit contracts to describe the broad characteristics of the parties … maturities from smaller suppliers, with the latter extending credit to the former perhaps as a way of certifying product quality …. Discounts for early payment seem to be offered to riskier buyers to limit the potential nonpayment risk when credit is extended …