This paper investigates the roles of bank and trade credits in a supply chain with a capital constrained retailer facing demand uncertainty. The retailer can borrow credit from a bank (bank credit), and/or from the supplier who allows delayed payment (trade credit). We evaluate the retailer's...

Due to firms' lack of creditworthiness and collateral, banks have imposed loan limits as a result of risk-control regulations in bank financing. As such, loan insurance has emerged as a useful instrument to lift loan limits. To study the joint value of bank loans and loan insurance, this article...