Bank Credit and Trade Credit under the COVID Crisis: A Comparison of the High-Technology and Low-Technology SMEs in Portugal
Bank Credit and Trade Credit under the COVID Crisis: A Comparison of the High-Technology and Low-Technology SMEs in Portugal
Author(s): Yehui Tong, Zélia SerrasqueiroSubject(s): National Economy, Business Economy / Management, Micro-Economics, Financial Markets, Public Finances, Socio-Economic Research
Published by: SAV - Slovenská akadémia vied - Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: bank credit; trade credit; COVID crisis; high-technology; low-technology
Summary/Abstract: This study investigates the relationship between bank credit and trade credit for high-technology and low-technology small and medium-sized enterprises (SMEs) in Portugal, considering the COVID-19 crisis's impact. Results reveal differences in the relationship between granting trade credit and obtaining bank credit between these SME types. Regarding receiving trade credit and obtaining bank credit, the findings show an independent relationship concerning whether bank credit is obtained and a substitute relationship concerning the amount of bank credit. The substitute effect reflects bank credit restrictions for SMEs, exacerbated by the COVID-19 crisis, leading to a strong substitute effect on low-technology SMEs during and after the crisis. The findings enrich research on SME external financing behavior with different technology features.
Journal: Ekonomický časopis
- Issue Year: 73/2025
- Issue No: 05-06
- Page Range: 231-255
- Page Count: 25
- Language: English
