Credit sales and advance payments: substitutes or complements?

5 Pages Posted: 20 Dec 2023

See all articles by Simona Mateut

Simona Mateut

Nottingham University Business School

Piercarlo Zanchettin

University of Leicester

Date Written: 2013

Abstract

We investigate the interaction between supplier credit sales and customer advance payment. We find evidence that advance payments and credit sales are used as complementary terms of payment in international trade and in transactions of differentiated goods.

Keywords: trade credit, advance payment, complementarity, substitutability, signalling

JEL Classification: G31, G32

Suggested Citation

Mateut, Simona and Zanchettin, Piercarlo, Credit sales and advance payments: substitutes or complements? ( 2013). Economics Letters, Vol. 118, No. 1, 2013, Available at SSRN: https://ssrn.com/abstract=4669221

Simona Mateut (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

Piercarlo Zanchettin

University of Leicester ( email )

Department of Economics
Leicester, LE1 7RH
United Kingdom

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