process of lending is changing from a direct, face-to-face process between borrower and lender to an indirect one where credit …

greater risk of failure. This article seeks to determine if “newness†is also a disadvantage in the acquisition of debt …, publicly-held firms, are unable to raise capital in the public debt and equity markets (Ang, 1991). Alternatively, they are …

of debt financing, debt maturity, and debt cost). A multiple regression equation estimated in the paper provides evidence … differences are in the ownership concentration, relative importance of various sources of capital, debt characteristics (sources … relating to cross-sectional variations in debt ratios of small firms. The paper offers information asymmetry, illiquidity, and …

that the two most common start-up financing alternatives are personal savings and commercial bank loans. Commercial banks … remain the most popular source of financing for present and future needs, followed by leasing companies and credit unions …. Informal types of financing such as business credit cards, and trade credit are used in addition to lines of credit for …

potential borrower to prefer having an audit to not having an audit is that the borrower’s debt to equity ratio must be above a … certain minimum cut-off value. For observed audit cost functions, this cut-off debt-equity ratio is higher for smaller initial … interest rate. Additionally, the cutoff debt-equity ratio is an increasing function of audit cost. Hence smaller audit costs …

by examining the nature of small business lending and the factors that make banks the primary providers of credit to … whether the nature of small business lend­ing satisfies those conditions. We argue that certain characteristics of small firm … lending to small busi­nesses. Securitizations of small business loans could still take place, but they are likely to be …

potential borrower to prefer having an audit to not having an audit is that the borrower’s debt to equity ratio must be above a … certain minimum cut-off value. For observed audit cost functions, this cut-off debt-equity ratio is higher for smaller initial … interest rate. Additionally, the cutoff debt-equity ratio is an increasing function of audit cost. Hence smaller audit costs …