Trade Credit or Bank Credit? – Lessons Learned from Hungarian Firms between 2010 and 2015

Havran, Dániel; Kerényi, Péter; Víg, Attila András

doi:10.25201/fer.16.4.86121

Cited by 1 publication

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“…Payment terms may have great economic significance, as small and medium-sized enterprises may often take advantage of longer payment deadlines consistently in order to gain access to liquidity, especially if they have no access to other financing channels, such as short-term bank loans. 10 This phenomenon was simulated by Burkart and Ellingsen (2004), on the basis of which Havran et al (2017) empirically demonstrated that on a sample of Hungarian firms a complementary effect could be observed between short-term bank loans and accounts payable in the period of 2010-2015. Moreover, analysing the data of SMEs across 13 European countries over the period of 2003of -2012of , McGuiness et al (2017 found that enterprises with access to trade credit were less likely to face financial distress during the credit crunch of the economic crisis.…”

Section: Studiesmentioning

confidence: 99%

An Analysis of the Payment Habits of Hungarian Micro, Small and Medium-sized Enterprises – In Focus: Cash Usage

Belházy¹,

Végső²,

Bódi-Schubert³

2018

Hitelintézeti szemle

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In this study, we examine the cash usage of Hungarian micro, small and mediumsized enterprises along with the main reasons behind the use of cash by analysing data from a questionnaire-based survey conducted on a sample comprising 1,000 corporate managers. In this context, we study the payment habits of enterprises, their ties with financial institutions, the degree of distrust in the Hungarian corporate sector and potential tools for the reduction of cash usage. Wherever possible, we compare our results to the conclusions of previously published Hungarian or foreign research conducted with a similar focus. According to our most important findings, credit transfer is clearly the most prominent payment method both in the SME sector and among microenterprises, but the rate of cash usage is also high and it does not exhibit a declining trend. Positive changes can be observed, however, in payment discipline and business confidence. Hungarian enterprises are loyal to their account manager banks, and although they are essentially open to electronic payment solutions they are highly sensitive to the associated costs.

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Section: Studiesmentioning

confidence: 99%

An Analysis of the Payment Habits of Hungarian Micro, Small and Medium-sized Enterprises – In Focus: Cash Usage

Belházy¹,

Végső²,

Bódi-Schubert³

2018

Hitelintézeti szemle

View full text Add to dashboard Cite

show abstract

Trade Credit or Bank Credit? – Lessons Learned from Hungarian Firms between 2010 and 2015

Abstract: This paper addresses the way in which trade credit was used by Journal of Economic Literature (JEL) codes: G32, C23

Cited by 1 publication

References 17 publications

An Analysis of the Payment Habits of Hungarian Micro, Small and Medium-sized Enterprises – In Focus: Cash Usage

An Analysis of the Payment Habits of Hungarian Micro, Small and Medium-sized Enterprises – In Focus: Cash Usage

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