A qualitative approach to trade credit in business organisations

Dariusz Nowak , Sławomir Górczyński


The aim of the paper is to present, in the cognitive aspect, the opinions, judgements and notions of entrepreneurs regarding financing of the current activity of enterprises with trade credit. The nature of the research problem determines the adoption of qualitative research as a research basis, in which direct interview with entrepreneurs has been used. These entrepreneurs, in transaction processes, represent both credit recipients as well as credit donors. Interviews were conducted in 2015, on a sample of 147 manufacturing companies of different nature and different business domain. The paper presents both positive, as well as negative aspects related to the use of trade credit. The possibility to purchase without having financial means, improving financial liquidity and production productivity; increase in revenue and competitive position and general use, open access and cheapness are particularly important in the first approach. Payment gridlock and high risk of activity, as well as increase in the cost in business activity were indicated in negative terms. Value - the authors try, through the prism of empirical research, to show and estimate positive and negative aspects of trade credit. This knowledge has a practical value as it could be used by other firms that implement or develop their trade credit policy.
Author Dariusz Nowak (WZ / KZAZP)
Dariusz Nowak,,
, Sławomir Górczyński (UEP)
Sławomir Górczyński,,
- Poznań University of Economics and Business
Other language title versionsKaczestwen podchod kym tyrgowskija kredit w biznes organizaciite
Journal seriesBusiness Management, ISSN 0861-6604, e-ISSN 2534-8396, (0 pkt)
Issue year2020
Publication size in sheets0.8
Keywords in Englishtrade credit, financial liquidity, current activity financing, positive and negative aspects of trade credit
URL https://bm.uni-svishtov.bg/title.asp?lang=en&title=1481
Languageen angielski , bg bułgarski
Score (nominal)5
Score sourcejournalList
ScoreMinisterial score = 5.0, 16-04-2020, ArticleFromJournal
Citation count*
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UwagiArtykuł opublikowany w 2 językach: w języku angielskim oraz w języku bułgarskim
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