scholarly journals As A Supply Chain Financing Source, Trade Credit and Bank Credit Relationship during Financial Crises from Clustering Point of View

2016 ◽  
Vol 9 (4) ◽  
pp. 45 ◽  
Author(s):  
Cuneyt Sevim ◽  
Aykut Ekiyor ◽  
Ali Tosyali
Keyword(s):  
Supply Chain ◽  
Financial Crisis ◽  
World Bank ◽  
Clustering Analysis ◽  
Trade Credit ◽  
Feature Selection Method ◽  
Point Of View ◽  
Bank Credit ◽  
Supply Chain Financing ◽  
Trade Credits

<p>This paper examines trade credit and bank credit behavior of firms during financial crisis using World Bank Survey dataset that contains detailed data on trade credit utilization of firms. Unlike literature, cluster analysis is used in order to investigate credit behavior of firms during financial crisis. For better clustering results, feature selection method is used to select variables thought to be important on model. When examined the trade and bank credit behavior of clusters that have been formed by using these variables with clustering analysis, it has been found that impact of the crisis on firms in the supply chain is important. It is found that due to demand fall for goods generated by crisis, firms are motivated to give trade credits to their customers in order not to lose them. However, firms need financial support either from the previous link in the supply chain through trade credit or from the financial institutions through bank credit.</p>

The Influence of the Enterprise’s Market Power on its Availability for Trade Credit and Bank Credit Financing - Based on the Empirical Test about the Listed Companies of Electrical Energy

2014 ◽  
Vol 687-691 ◽  
pp. 4794-4798
Author(s):  
Dan Wu ◽  
Yan Luo
Keyword(s):  
Market Power ◽  
Trade Credit ◽  
Empirical Test ◽  
Electrical Energy ◽  
Listed Companies ◽  
Bank Loans ◽  
Bank Credit ◽  
Linear Regression Models ◽  
Trade Credits ◽  
Credit Financing

The paper, sampling the data from A-shares listed companies of electrical energy during the period of 2009 to 2012, checks out the influence of the enterprise’s market power on its capacity for trade credit and bank credit financing. The paper tries to find out the internal relationship among them by building linear regression models of the explained variable, Credit, the explaining variable, MP, and the control variables, SIZE, EBIT, LIQ, CFO, SBA and SBA*MP. In the study, we find that the target customers of trade credits and bank loans are almost enterprises with a high market power.

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.

scholarly journals Supply chain coordination with trade credit and price discount with/without environmental considerations

2021 ◽  
Author(s):  
Salem Mousa Salem Aljazzar
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Performance Measure ◽  
Sensitivity Analyses ◽  
Total System ◽  
Permissible Delay In Payments ◽  
Price Discounts ◽  
Trade Credits ◽  
Delay In Payments

For a supply chain coordination to be effective and profitable, it requires a working mechanism among its members to entice some players to join a partnership. Two of the well-known trade credits that are widely used by businesses are the permissible delay in payments and price discounts. This thesis presents models for coordinating supply chains with both trade credits. The first model investigates the effect of utilizing delay in payments in a two-level (manufacturer-retailer) supply chain. It modifies and analyzes three known models of different production and shipping policies to account for delays in payments; it then compares them and highlights the production policy that performed the best with the total system cost being the performance measure. The second model analyzes the coordination of a three-level (supplier-manufacturer- retailer) supply chain with the delay in payments. It analyzes nine different scenarios of permissible delay among the three players. A simulation study was performed and a thorough analysis of the results was used to identify the limitations of all scenarios and to draw some managerial insights and findings. The third model investigates the effect of coupling permissible delay in payments and price discounts for coordinating a three-level. The analysis considers nine different cases of delay-in-payments along with eight cases of price discounts among the three players in the supply chain, totaling seventy-two cases. The numerical examples and the sensitivity analyses show that the coupling of delay-in- payments and price discounts maximizes the supply chain profit more than when using a single mechanism at a time. The fourth model investigates a two-level supply chain by studying the effects of various scenarios for delay-in-payments when including some environmental costs such as fuel and emissions from manufacturing and transportation. The objective of the model is to optimize the environmental and the economic performance of the supply chain. The results show that delay-in-payments improves the economic and the environmental performance of a supply chain.

scholarly journals Supply chain coordination with trade credit and price discount with/without environmental considerations

2021 ◽  
Author(s):  
Salem Mousa Salem Aljazzar
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Performance Measure ◽  
Sensitivity Analyses ◽  
Total System ◽  
Permissible Delay In Payments ◽  
Price Discounts ◽  
Trade Credits ◽  
Delay In Payments

For a supply chain coordination to be effective and profitable, it requires a working mechanism among its members to entice some players to join a partnership. Two of the well-known trade credits that are widely used by businesses are the permissible delay in payments and price discounts. This thesis presents models for coordinating supply chains with both trade credits. The first model investigates the effect of utilizing delay in payments in a two-level (manufacturer-retailer) supply chain. It modifies and analyzes three known models of different production and shipping policies to account for delays in payments; it then compares them and highlights the production policy that performed the best with the total system cost being the performance measure. The second model analyzes the coordination of a three-level (supplier-manufacturer- retailer) supply chain with the delay in payments. It analyzes nine different scenarios of permissible delay among the three players. A simulation study was performed and a thorough analysis of the results was used to identify the limitations of all scenarios and to draw some managerial insights and findings. The third model investigates the effect of coupling permissible delay in payments and price discounts for coordinating a three-level. The analysis considers nine different cases of delay-in-payments along with eight cases of price discounts among the three players in the supply chain, totaling seventy-two cases. The numerical examples and the sensitivity analyses show that the coupling of delay-in- payments and price discounts maximizes the supply chain profit more than when using a single mechanism at a time. The fourth model investigates a two-level supply chain by studying the effects of various scenarios for delay-in-payments when including some environmental costs such as fuel and emissions from manufacturing and transportation. The objective of the model is to optimize the environmental and the economic performance of the supply chain. The results show that delay-in-payments improves the economic and the environmental performance of a supply chain.

Metal Industry Supply Chain Buyback Contract Coordination and Income Distribution Based on Trade Credit

2014 ◽  
Vol 889-890 ◽  
pp. 1503-1506
Author(s):  
Li Ping Yu ◽  
Cong Wang ◽  
Xiang Yuang Li
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Metal Industry ◽  
Operational Performance ◽  
Optimal Contract ◽  
Rational Allocation ◽  
Trade Credits ◽  
Buyback Contract

This paper considers a metal industry supply chain consisting of one supplier and one retailer. When the supplier offers the trade credit to the retailer, their target profit and the supply chains profit will change. We develop the metal industry supply chains trade credit-based buyback contract model and analyze the buyback based on trade credits mechanism for improving the entire metal industry supply chain operational performance and for distributing the profit. We also derive the optimal contract parameters for the metal industry supply chain coordination and the conditions for profits rational allocation. Finally, a numerical example illustrates the conclusions.

Joint Operational and Financial Collaboration in a Capital-Constrained Supply Chain Under Manufacturer Collateral

2018 ◽  
Vol 35 (03) ◽  
pp. 1850010 ◽  
Author(s):  
Gongbing Bi ◽  
Yalei Fei ◽  
Xiaoyong Yuan ◽  
Dong Wang
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Wholesale Price ◽  
Distribution Channel ◽  
Optimal Solution ◽  
Bank Credit ◽  
Order Quantity ◽  
Purchase Order ◽  
Constraint Problem ◽  
Fierce Competition

Operational collaboration in a supply chain is important due to the fierce competition among supply chains. However, the collaboration in a supply chain is often hindered by its distribution channel’s lack of funds. It is of significance to alleviate the capital constraint problem of the distribution channel and explore new joint operational and financial collaboration solutions. In this paper, we focus on exploring the optimal solution of operational collaboration in the presence of manufacturer collateral. We consider a supply chain consisting of a well-capitalized manufacturer and a capital-constrained retailer that faces difficulties obtaining credit from the bank. To help the retailer access financing for a purchase order, the manufacturer promises to pay the lender a proportion of the retailer’s loan if the retailer goes bankrupt. We find that when the bank credit with manufacturer collateral is considered as a mix of trade credit and bank credit, the retailer’s financing equilibrium depending on the maximum wholesale price what the manufacturer can set, can be neither trade credit nor bank credit alone, but a combination of them. Moreover, the retailer’s order quantity and the chain’s operational collaboration level will benefit from the manufacturer collateral.

scholarly journals Financing Strategy and Carbon Emission Abatement in a Supply Chain considering Retailers’ Competition

2021 ◽  
Vol 2021 ◽  
pp. 1-19
Author(s):  
Man Yu ◽  
Tuo Li ◽  
Zhanwen Shi
Keyword(s):  
Supply Chain ◽  
Interest Rate ◽  
Carbon Emission ◽  
Trade Credit ◽  
Bank Credit ◽  
Emission Abatement ◽  
Dual Channel ◽  
Financing Channels ◽  
Credit Financing ◽  
Financing Strategy

This paper investigates the issues of financing channels (bank credit financing, trade credit financing, and dual-channel financing) and carbon emission abatement in a supply chain consisting of one capital-constrained manufacturer and two capital-constrained retailers. Compared with bank credit, we find that every member can make more profit under trade credit when only one financing channel is available. When both bank credit and trade credit are available, the retailers’ financing strategy highly depends on the interest rates charged by the creditors. In addition, we also examine the impact of financing channels on emission abatement. It shows that the manufacturer reduces more carbon emissions under trade credit. Interestingly, the emission abatement has nothing to do with trade credit interest rate when retailers only adopt trade credit, whereas it is closely related to trade credit interest rate under dual-channel financing.

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