This paper examines differences in the ability to obtain capital—bank loans and trade credit—between firms, industries, and countries using survey data on European small and medium-sized enterprises (SMEs) from 2009 to 2014. The results show that firm age and firm size are positively linked to SMEs’ access to bank loans, but only firm size is positively related to the provision of trade credit. The results also provide empirical support for a complementary rather than a substitutive effect between bank loans and trade credit. Manufacturing SMEs have a significantly higher likelihood of receiving bank loans and trade credit than non-manufacturing SMEs. We find differences across countries in terms of the relevance of firm age and firm size for obtaining capital. In addition, we point at specific country-level variables that explain why obtaining credit is easier in some countries. We perform additional analyses to confirm our baseline results and provide directions for future research.

Additional Metadata
Keywords Bank loans, Information asymmetry, SMEs, Trade credit
Persistent URL dx.doi.org/10.1007/s11187-017-9926-y, hdl.handle.net/1765/102058
Journal Small Business Economics: an entrepreneurship journal
Citation
Andrieu, G. (Guillaume), Staglianò, R. (Raffaele), & van der Zwan, P.W. (2017). Bank debt and trade credit for SMEs in Europe: firm-, industry-, and country-level determinants. Small Business Economics: an entrepreneurship journal, 1–20. doi:10.1007/s11187-017-9926-y