Klapper, Leora; Laeven, Luc; Rajan, Raghuram - 2012
The authors employ a novel dataset on almost 30,000 trade credit contracts to describe the broad characteristics of the … maturities from smaller suppliers, with the latter extending credit to the former perhaps as a way of certifying product quality …. Discounts for early payment seem to be offered to riskier buyers to limit the potential nonpayment risk when credit is extended …