C. Menichini, Anna Maria2012-03-192012-03-192009-11-01https://hdl.handle.net/10986/4302The paper discusses the main features that distinguish inter-firm international trade finance from alternative sources of financing. On the one hand, inter-firm trade finance could help overcome informational problems associated with other lending relationships; on the other, it may contribute to propagate shocks due to the interconnection among firms along credit chains. The paper evaluates the potential effects of a financial crisis on the use of trade credit for firms operating in developing countries. It argues that while the advantages of trade credit might remain largely unexploited due to poor legal institutions, the disadvantages might be exacerbated because of these firms greater exposure to a default chain. Based on these arguments, a menu of choices is identified for what policymakers can do to boost firms access to inter-firm trade finance in times of crisis.CC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCINGACCOUNTS PAYABLEACCOUNTS RECEIVABLEACCOUNTS RECEIVABLESADMINISTRATIVE BARRIERSALTERNATIVE SOURCES OF FINANCINGASYMMETRIC INFORMATIONBACKED FINANCINGBALANCE SHEETBALANCE SHEETSBALANCE-SHEETBANK CREDITBANK DEBTBANK POLICYBANKING SYSTEMBANKRUPTBANKRUPTCYBANKRUPTCY CODEBANKRUPTCY CODESBANKRUPTCY LAWBANKRUPTCY PROCEDURESBANKRUPTCY PROCESSBANKRUPTCY REGIMEBANKRUPTCY REGIMESBORROWERBORROWINGBORROWING CAPACITYBUSINESS CREDITBUSINESS CYCLEBUSINESS LAWBUSINESS LAWSCASE OF DEFAULTCASH PAYMENTSCIVIL LAWCLAIMCOLLATERALCOLLECT PAYMENTCOMMERCIAL LENDINGCOMMERCIAL PAPERCOMMON LAWCOMMON LAW COUNTRIESCOMPETITIVENESSCONSUMER CREDITCONTRACT ENFORCEMENTCONTRACT LAWCONTRACTUAL RIGHTSCORPORATE FINANCECOST OF CREDITCOURT HEARINGCREDIT AGENCIESCREDIT CHAINCREDIT CHAINSCREDIT CONTRACTSCREDIT CRUNCHCREDIT DEFAULTCREDIT DEFAULTSCREDIT EXTENSIONCREDIT EXTENSIONSCREDIT GUARANTEESCREDIT HISTORYCREDIT INCREASESCREDIT INFORMATIONCREDIT LIMITSCREDIT MARKETSCREDIT RATINGSCREDIT RATIONINGCREDIT REGISTRIESCREDIT RELATIONSHIPCREDIT RELATIONSHIPSCREDIT RISKCREDIT TERMSCREDITORCREDITORSCREDITWORTHINESSCROSS-BORDER TRANSACTIONSCURRENCYCUSTOMER RELATIONSHIPDEBTDEBT COLLECTORSDEBT REPAYMENTDEBT REPAYMENTSDEBTORDEBTORSDEBTSDEFAULTSDEVELOPING COUNTRIESDIFFERENT LEGAL SYSTEMSDISPUTE RESOLUTIONDIVERSIFICATIONECONOMIC CRISISEFFICIENT JUDICIAL SYSTEMEMERGING MARKETEMERGING MARKETSENFORCEABILITYENFORCEABILITY OF CONTRACTSENFORCEABLE CONTRACTENFORCEMENT OF CONTRACTSENTREPRENEURSEQUIPMENTEQUITY CONVERSIONESTATEEVENT OF DEFAULTEXCHANGE RATEEXISTING CREDITEXPLOITATIONEXPORT FINANCINGEXPORTEREXPORTERSEXPORTSEXPROPRIATIONEXTENSIONS OF CREDITFILING FOR BANKRUPTCYFINANCE CORPORATIONFINANCIAL ASSETSFINANCIAL CONSTRAINTSFINANCIAL CRISISFINANCIAL DIFFICULTIESFINANCIAL DISTRESSFINANCIAL HEALTHFINANCIAL INSTITUTIONFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL STATEMENTSFINANCIAL STUDIESFINANCIAL SUPPORTFINANCIAL SYSTEMSFINANCIERFINANCIERSFINANCING NEEDSFIRM FINANCINGFLOW OF FUNDSFORMS OF CREDITGLOBAL BUSINESSGLOBAL ECONOMYGOING CONCERNGOING CONCERN VALUEGOOD CREDITGOVERNMENT GUARANTEESGUARANTORINADEQUATE LAWSINEFFICIENT LIQUIDATIONINFORMAL CREDITINFORMATION SHARINGINSOLVENCYINSOLVENCY PROCEEDINGSINSOLVENTINSTITUTIONAL FRAMEWORKINSTITUTIONAL REFORMSINSTRUMENTINSURANCEINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL TRADEINTERNATIONAL TRANSACTIONSINVENTORIESINVENTORYINVESTOR PROTECTIONJUDICIAL EFFICIENCYJUDICIAL SYSTEMJUDICIAL SYSTEMSLEGAL ENVIRONMENTSLEGAL ORIGINLEGAL ORIGINSLEGAL PROTECTIONLEGAL SYSTEMLEGAL SYSTEMSLENDERLETTER OF CREDITLETTERS OF CREDITLIENSLIQUIDATIONLIQUIDATION VALUELIQUIDATIONSLIQUIDITYLIQUIDITY PROBLEMSLOANMARKET FAILUREMARKET FAILURESMARKET PARTICIPANTSMARKET STRUCTUREMATURITYMATURITY PERIODMONETARY FUNDMONEY LENDINGMORAL HAZARDNEGATIVE SHOCKSNEGOTIATIONNONPAYMENTOLD CREDITORSORDER OF PRIORITYPAYMENT TERMSPOLITICAL ECONOMYPOLITICAL RISKSPRIVATE BANKSPUBLIC CREDITRECESSIONREORGANIZATIONREORGANIZATION PLANREPAYMENTREPAYMENT HISTORYRISK OF INSOLVENCYSECONDARY MARKETSHORT-TERM FINANCINGSHORT-TERM LENDINGSHORT-TERM TRADE FINANCESINGLE CREDITORSUPPLY CHAINSUPPLY CHAINSSUPPLY OF CREDITSYSTEMIC CRISISTERRORISMTRADE CREDITTRADE CREDITORSTRADE FINANCETRADE FINANCINGTRADINGTRANSACTIONTRANSITION COUNTRIESUNIONSWORKING CAPITALWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-5112