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Using panel data models and two research sub-samples composed of smaller and larger VC-backed, this study seeks to analyze the relationship between investment and internal cash flows. The results indicate that the investment sensitivity to internal cash flows is greater in larger than in the...
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that the two most common start-up financing alternatives are personal savings and commercial bank loans. Commercial banks … remain the most popular source of financing for present and future needs, followed by leasing companies and credit unions …. Informal types of financing such as business credit cards, and trade credit are used in addition to lines of credit for …
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The existing finance literature is inadequate with respect to its coverage of the debt structure of small and medi-um sized enterprises (SMEs). In addition, the role of trust in accessing finance for such enterprises is under-investigated. This paper presents a mathematical model for optimizing...
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Previous research on relationship lending has paid very little attention to the role of trust. Trust might be ex-pected to reduce agency costs, perceived credit risk and thus the request for personal collateral. Trustworthiness is associated with three attributes of SME owner/managers’:...
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When credit application experiences are examined, minority-owned small firms are not the discouraged borrowers that credit outcome studies generally suggest. This paper examines repeated application for credit by small firms. Univariate statistical analysis reveals that persistence is necessary...
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are unable to tap into this market. Instead, they depend on owner equity, other private equity, and debt financing. Survey … data from the Federal Reserve Board allow an in depth look at the patterns of small business financing in the late nineties …. Evidence suggests that debt financing for small businesses was extremely important, especially for young firms. …
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