-2009, we show that firms use the trade credit channel to manage growth. In countries where the trade credit channel is more … financial market imperfections, and therefore more likely to be financially constrained, rely more on the trade credit channel … the trade credit channel for growth …

–2009, we show that firms use the trade credit channel to manage growth. In countries where the trade credit channel is more … financial market imperfections, rely more on the trade credit channel to manage growth. Finally, we show that also the overall … conditions of the financial market matter for the importance of the trade credit channel for growth …

In contrast to common literature that suggests that trade credit is an extremely expensive source of financing with … annual interest rates exceeding 40 percent, this paper argues that the average interest rate of trade credit does not exceed … credit constitutes a substantial part of the optimal financing mix also of large, liquid, and capital market listed firms …