Businesses typically rely on banks and financial markets for financing, but credit provided by suppliers also can play an important role, especially in manufacturing. Yet why firms lend and borrow extensively from each other is still an open question. In a paper in the Journal of the Journal of Financial Economics, financial researchers examined trade credit from a new angle.
A deep analysis of supply chains by researchers in the Lundquist College of Business finds that a firm's role in the chain can have a large influence on.