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Indiana University Bloomington

Department of Finance

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Our top-ranked finance faculty are authors of leading textbooks.

Research and Publications

Journal Articles

Trade Credit, the Financial Crisis, and SME Access to Finance

2014, forthcoming Journal of Money, Credit and Banking

S. Carbo-Valverde, F. Rodriguez-Fernandez, G. F. Udell


Mounting evidence indicates that firms, particularly SMEs, suffered from a significant credit crunch during this crisis. Little research exists on how SMEs coped with this problem due to a lack of data in the U.S. and elsewhere. We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the crisis. Using firm-level Spanish data we find that credit constrained SMEs depend on trade credit, but not bank loans, and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on bank loans not trade credit.


Carbo-Valverde, Santiago, Francisco Rodriguez-Fernandez and Gregory F. Udell (2014), “Trade Credit, the Financial Crisis, and SME Access to Finance,” forthcoming, Journal of Money, Credit and Banking.