Inter-Firm Trade Finance in Times of Crisis
The 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...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091104151418 http://hdl.handle.net/10986/4302 |
| id |
okr-10986-4302 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCING ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLES ADMINISTRATIVE BARRIERS ALTERNATIVE SOURCES OF FINANCING ASYMMETRIC INFORMATION BACKED FINANCING BALANCE SHEET BALANCE SHEETS BALANCE-SHEET BANK CREDIT BANK DEBT BANK POLICY BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY CODES BANKRUPTCY LAW BANKRUPTCY PROCEDURES BANKRUPTCY PROCESS BANKRUPTCY REGIME BANKRUPTCY REGIMES BORROWER BORROWING BORROWING CAPACITY BUSINESS CREDIT BUSINESS CYCLE BUSINESS LAW BUSINESS LAWS CASE OF DEFAULT CASH PAYMENTS CIVIL LAW CLAIM COLLATERAL COLLECT PAYMENT COMMERCIAL LENDING COMMERCIAL PAPER COMMON LAW COMMON LAW COUNTRIES COMPETITIVENESS CONSUMER CREDIT CONTRACT ENFORCEMENT CONTRACT LAW CONTRACTUAL RIGHTS CORPORATE FINANCE COST OF CREDIT COURT HEARING CREDIT AGENCIES CREDIT CHAIN CREDIT CHAINS CREDIT CONTRACTS CREDIT CRUNCH CREDIT DEFAULT CREDIT DEFAULTS CREDIT EXTENSION CREDIT EXTENSIONS CREDIT GUARANTEES CREDIT HISTORY CREDIT INCREASES CREDIT INFORMATION CREDIT LIMITS CREDIT MARKETS CREDIT RATINGS CREDIT RATIONING CREDIT REGISTRIES CREDIT RELATIONSHIP CREDIT RELATIONSHIPS CREDIT RISK CREDIT TERMS CREDITOR CREDITORS CREDITWORTHINESS CROSS-BORDER TRANSACTIONS CURRENCY CUSTOMER RELATIONSHIP DEBT DEBT COLLECTORS DEBT REPAYMENT DEBT REPAYMENTS DEBTOR DEBTORS DEBTS DEFAULTS DEVELOPING COUNTRIES DIFFERENT LEGAL SYSTEMS DISPUTE RESOLUTION DIVERSIFICATION ECONOMIC CRISIS EFFICIENT JUDICIAL SYSTEM EMERGING MARKET EMERGING MARKETS ENFORCEABILITY ENFORCEABILITY OF CONTRACTS ENFORCEABLE CONTRACT ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUIPMENT EQUITY CONVERSION ESTATE EVENT OF DEFAULT EXCHANGE RATE EXISTING CREDIT EXPLOITATION EXPORT FINANCING EXPORTER EXPORTERS EXPORTS EXPROPRIATION EXTENSIONS OF CREDIT FILING FOR BANKRUPTCY FINANCE CORPORATION FINANCIAL ASSETS FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL DISTRESS FINANCIAL HEALTH FINANCIAL INSTITUTION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL SUPPORT FINANCIAL SYSTEMS FINANCIER FINANCIERS FINANCING NEEDS FIRM FINANCING FLOW OF FUNDS FORMS OF CREDIT GLOBAL BUSINESS GLOBAL ECONOMY GOING CONCERN GOING CONCERN VALUE GOOD CREDIT GOVERNMENT GUARANTEES GUARANTOR INADEQUATE LAWS INEFFICIENT LIQUIDATION INFORMAL CREDIT INFORMATION SHARING INSOLVENCY INSOLVENCY PROCEEDINGS INSOLVENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTRUMENT INSURANCE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS INVENTORIES INVENTORY INVESTOR PROTECTION JUDICIAL EFFICIENCY JUDICIAL SYSTEM JUDICIAL SYSTEMS LEGAL ENVIRONMENTS LEGAL ORIGIN LEGAL ORIGINS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LENDER LETTER OF CREDIT LETTERS OF CREDIT LIENS LIQUIDATION LIQUIDATION VALUE LIQUIDATIONS LIQUIDITY LIQUIDITY PROBLEMS LOAN MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET STRUCTURE MATURITY MATURITY PERIOD MONETARY FUND MONEY LENDING MORAL HAZARD NEGATIVE SHOCKS NEGOTIATION NONPAYMENT OLD CREDITORS ORDER OF PRIORITY PAYMENT TERMS POLITICAL ECONOMY POLITICAL RISKS PRIVATE BANKS PUBLIC CREDIT RECESSION REORGANIZATION REORGANIZATION PLAN REPAYMENT REPAYMENT HISTORY RISK OF INSOLVENCY SECONDARY MARKET SHORT-TERM FINANCING SHORT-TERM LENDING SHORT-TERM TRADE FINANCE SINGLE CREDITOR SUPPLY CHAIN SUPPLY CHAINS SUPPLY OF CREDIT SYSTEMIC CRISIS TERRORISM TRADE CREDIT TRADE CREDITORS TRADE FINANCE TRADE FINANCING TRADING TRANSACTION TRANSITION COUNTRIES UNIONS WORKING CAPITAL WORLD TRADE ORGANIZATION WTO |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCING ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLES ADMINISTRATIVE BARRIERS ALTERNATIVE SOURCES OF FINANCING ASYMMETRIC INFORMATION BACKED FINANCING BALANCE SHEET BALANCE SHEETS BALANCE-SHEET BANK CREDIT BANK DEBT BANK POLICY BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY CODES BANKRUPTCY LAW BANKRUPTCY PROCEDURES BANKRUPTCY PROCESS BANKRUPTCY REGIME BANKRUPTCY REGIMES BORROWER BORROWING BORROWING CAPACITY BUSINESS CREDIT BUSINESS CYCLE BUSINESS LAW BUSINESS LAWS CASE OF DEFAULT CASH PAYMENTS CIVIL LAW CLAIM COLLATERAL COLLECT PAYMENT COMMERCIAL LENDING COMMERCIAL PAPER COMMON LAW COMMON LAW COUNTRIES COMPETITIVENESS CONSUMER CREDIT CONTRACT ENFORCEMENT CONTRACT LAW CONTRACTUAL RIGHTS CORPORATE FINANCE COST OF CREDIT COURT HEARING CREDIT AGENCIES CREDIT CHAIN CREDIT CHAINS CREDIT CONTRACTS CREDIT CRUNCH CREDIT DEFAULT CREDIT DEFAULTS CREDIT EXTENSION CREDIT EXTENSIONS CREDIT GUARANTEES CREDIT HISTORY CREDIT INCREASES CREDIT INFORMATION CREDIT LIMITS CREDIT MARKETS CREDIT RATINGS CREDIT RATIONING CREDIT REGISTRIES CREDIT RELATIONSHIP CREDIT RELATIONSHIPS CREDIT RISK CREDIT TERMS CREDITOR CREDITORS CREDITWORTHINESS CROSS-BORDER TRANSACTIONS CURRENCY CUSTOMER RELATIONSHIP DEBT DEBT COLLECTORS DEBT REPAYMENT DEBT REPAYMENTS DEBTOR DEBTORS DEBTS DEFAULTS DEVELOPING COUNTRIES DIFFERENT LEGAL SYSTEMS DISPUTE RESOLUTION DIVERSIFICATION ECONOMIC CRISIS EFFICIENT JUDICIAL SYSTEM EMERGING MARKET EMERGING MARKETS ENFORCEABILITY ENFORCEABILITY OF CONTRACTS ENFORCEABLE CONTRACT ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUIPMENT EQUITY CONVERSION ESTATE EVENT OF DEFAULT EXCHANGE RATE EXISTING CREDIT EXPLOITATION EXPORT FINANCING EXPORTER EXPORTERS EXPORTS EXPROPRIATION EXTENSIONS OF CREDIT FILING FOR BANKRUPTCY FINANCE CORPORATION FINANCIAL ASSETS FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL DISTRESS FINANCIAL HEALTH FINANCIAL INSTITUTION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL SUPPORT FINANCIAL SYSTEMS FINANCIER FINANCIERS FINANCING NEEDS FIRM FINANCING FLOW OF FUNDS FORMS OF CREDIT GLOBAL BUSINESS GLOBAL ECONOMY GOING CONCERN GOING CONCERN VALUE GOOD CREDIT GOVERNMENT GUARANTEES GUARANTOR INADEQUATE LAWS INEFFICIENT LIQUIDATION INFORMAL CREDIT INFORMATION SHARING INSOLVENCY INSOLVENCY PROCEEDINGS INSOLVENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTRUMENT INSURANCE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS INVENTORIES INVENTORY INVESTOR PROTECTION JUDICIAL EFFICIENCY JUDICIAL SYSTEM JUDICIAL SYSTEMS LEGAL ENVIRONMENTS LEGAL ORIGIN LEGAL ORIGINS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LENDER LETTER OF CREDIT LETTERS OF CREDIT LIENS LIQUIDATION LIQUIDATION VALUE LIQUIDATIONS LIQUIDITY LIQUIDITY PROBLEMS LOAN MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET STRUCTURE MATURITY MATURITY PERIOD MONETARY FUND MONEY LENDING MORAL HAZARD NEGATIVE SHOCKS NEGOTIATION NONPAYMENT OLD CREDITORS ORDER OF PRIORITY PAYMENT TERMS POLITICAL ECONOMY POLITICAL RISKS PRIVATE BANKS PUBLIC CREDIT RECESSION REORGANIZATION REORGANIZATION PLAN REPAYMENT REPAYMENT HISTORY RISK OF INSOLVENCY SECONDARY MARKET SHORT-TERM FINANCING SHORT-TERM LENDING SHORT-TERM TRADE FINANCE SINGLE CREDITOR SUPPLY CHAIN SUPPLY CHAINS SUPPLY OF CREDIT SYSTEMIC CRISIS TERRORISM TRADE CREDIT TRADE CREDITORS TRADE FINANCE TRADE FINANCING TRADING TRANSACTION TRANSITION COUNTRIES UNIONS WORKING CAPITAL WORLD TRADE ORGANIZATION WTO C. Menichini, Anna Maria Inter-Firm Trade Finance in Times of Crisis |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5112 |
| description |
The 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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
C. Menichini, Anna Maria |
| author_facet |
C. Menichini, Anna Maria |
| author_sort |
C. Menichini, Anna Maria |
| title |
Inter-Firm Trade Finance in Times of Crisis |
| title_short |
Inter-Firm Trade Finance in Times of Crisis |
| title_full |
Inter-Firm Trade Finance in Times of Crisis |
| title_fullStr |
Inter-Firm Trade Finance in Times of Crisis |
| title_full_unstemmed |
Inter-Firm Trade Finance in Times of Crisis |
| title_sort |
inter-firm trade finance in times of crisis |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091104151418 http://hdl.handle.net/10986/4302 |
| _version_ |
1764390834849972224 |
| spelling |
okr-10986-43022021-04-23T14:02:17Z Inter-Firm Trade Finance in Times of Crisis C. Menichini, Anna Maria ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCING ACCOUNTS PAYABLE ACCOUNTS RECEIVABLE ACCOUNTS RECEIVABLES ADMINISTRATIVE BARRIERS ALTERNATIVE SOURCES OF FINANCING ASYMMETRIC INFORMATION BACKED FINANCING BALANCE SHEET BALANCE SHEETS BALANCE-SHEET BANK CREDIT BANK DEBT BANK POLICY BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY CODES BANKRUPTCY LAW BANKRUPTCY PROCEDURES BANKRUPTCY PROCESS BANKRUPTCY REGIME BANKRUPTCY REGIMES BORROWER BORROWING BORROWING CAPACITY BUSINESS CREDIT BUSINESS CYCLE BUSINESS LAW BUSINESS LAWS CASE OF DEFAULT CASH PAYMENTS CIVIL LAW CLAIM COLLATERAL COLLECT PAYMENT COMMERCIAL LENDING COMMERCIAL PAPER COMMON LAW COMMON LAW COUNTRIES COMPETITIVENESS CONSUMER CREDIT CONTRACT ENFORCEMENT CONTRACT LAW CONTRACTUAL RIGHTS CORPORATE FINANCE COST OF CREDIT COURT HEARING CREDIT AGENCIES CREDIT CHAIN CREDIT CHAINS CREDIT CONTRACTS CREDIT CRUNCH CREDIT DEFAULT CREDIT DEFAULTS CREDIT EXTENSION CREDIT EXTENSIONS CREDIT GUARANTEES CREDIT HISTORY CREDIT INCREASES CREDIT INFORMATION CREDIT LIMITS CREDIT MARKETS CREDIT RATINGS CREDIT RATIONING CREDIT REGISTRIES CREDIT RELATIONSHIP CREDIT RELATIONSHIPS CREDIT RISK CREDIT TERMS CREDITOR CREDITORS CREDITWORTHINESS CROSS-BORDER TRANSACTIONS CURRENCY CUSTOMER RELATIONSHIP DEBT DEBT COLLECTORS DEBT REPAYMENT DEBT REPAYMENTS DEBTOR DEBTORS DEBTS DEFAULTS DEVELOPING COUNTRIES DIFFERENT LEGAL SYSTEMS DISPUTE RESOLUTION DIVERSIFICATION ECONOMIC CRISIS EFFICIENT JUDICIAL SYSTEM EMERGING MARKET EMERGING MARKETS ENFORCEABILITY ENFORCEABILITY OF CONTRACTS ENFORCEABLE CONTRACT ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUIPMENT EQUITY CONVERSION ESTATE EVENT OF DEFAULT EXCHANGE RATE EXISTING CREDIT EXPLOITATION EXPORT FINANCING EXPORTER EXPORTERS EXPORTS EXPROPRIATION EXTENSIONS OF CREDIT FILING FOR BANKRUPTCY FINANCE CORPORATION FINANCIAL ASSETS FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL DIFFICULTIES FINANCIAL DISTRESS FINANCIAL HEALTH FINANCIAL INSTITUTION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL STATEMENTS FINANCIAL STUDIES FINANCIAL SUPPORT FINANCIAL SYSTEMS FINANCIER FINANCIERS FINANCING NEEDS FIRM FINANCING FLOW OF FUNDS FORMS OF CREDIT GLOBAL BUSINESS GLOBAL ECONOMY GOING CONCERN GOING CONCERN VALUE GOOD CREDIT GOVERNMENT GUARANTEES GUARANTOR INADEQUATE LAWS INEFFICIENT LIQUIDATION INFORMAL CREDIT INFORMATION SHARING INSOLVENCY INSOLVENCY PROCEEDINGS INSOLVENT INSTITUTIONAL FRAMEWORK INSTITUTIONAL REFORMS INSTRUMENT INSURANCE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL TRADE INTERNATIONAL TRANSACTIONS INVENTORIES INVENTORY INVESTOR PROTECTION JUDICIAL EFFICIENCY JUDICIAL SYSTEM JUDICIAL SYSTEMS LEGAL ENVIRONMENTS LEGAL ORIGIN LEGAL ORIGINS LEGAL PROTECTION LEGAL SYSTEM LEGAL SYSTEMS LENDER LETTER OF CREDIT LETTERS OF CREDIT LIENS LIQUIDATION LIQUIDATION VALUE LIQUIDATIONS LIQUIDITY LIQUIDITY PROBLEMS LOAN MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET STRUCTURE MATURITY MATURITY PERIOD MONETARY FUND MONEY LENDING MORAL HAZARD NEGATIVE SHOCKS NEGOTIATION NONPAYMENT OLD CREDITORS ORDER OF PRIORITY PAYMENT TERMS POLITICAL ECONOMY POLITICAL RISKS PRIVATE BANKS PUBLIC CREDIT RECESSION REORGANIZATION REORGANIZATION PLAN REPAYMENT REPAYMENT HISTORY RISK OF INSOLVENCY SECONDARY MARKET SHORT-TERM FINANCING SHORT-TERM LENDING SHORT-TERM TRADE FINANCE SINGLE CREDITOR SUPPLY CHAIN SUPPLY CHAINS SUPPLY OF CREDIT SYSTEMIC CRISIS TERRORISM TRADE CREDIT TRADE CREDITORS TRADE FINANCE TRADE FINANCING TRADING TRANSACTION TRANSITION COUNTRIES UNIONS WORKING CAPITAL WORLD TRADE ORGANIZATION WTO The 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. 2012-03-19T19:13:35Z 2012-03-19T19:13:35Z 2009-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091104151418 http://hdl.handle.net/10986/4302 English Policy Research working paper ; no. WPS 5112 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |