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The recourse to trade credit by Italian firms during the crisis

rade credit, for many firms, is an essential tool for financing growth. Trade credit indicates a practise to buy goods or services on account without making immediate cash payment. Although trade credit is an important source of funds for small businesses, little has been known about the reasons business customers use it. Economists have linked the use of trade credit to transaction and financing motive. The use of trade credit because credit from other sources, particularly from financial institutions, is limited during recession periods represents a reasonable motive. In order to verify if Italian firms faced to credit restrictions by recurring more intensively to trade credit, we examine…