Browsing by Subject "Start-ups"
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- PublicationOpen AccessInvestment in trade credit in small business start-ups: Evidence from Spain during a financial crisis(Taylor and Francis Group, 2022-06-28) Baños Caballero, Sonia; García Teruel, Pedro Juan; Organización de Empresas y Finanzas; Facultades, Departamentos, Servicios y Escuelas::Departamentos de la UMU::Economía Financiera y ContabilidadThis study analyses start-up firms’ investment in trade credit during the period 2011-2014. We find that new or recently created firms had greater investments in trade credit than established firms. Moreover, the results indicate that start-up firms’ investment in trade credit did not depend on their bargaining power or access to external finance. These findings suggest that the reason start-ups invested more in accounts receivable than established firms could be due to late payments or their granting credit to low-quality customers who cannot obtain credit from established firms.