TY - JOUR AU1 - Summers, Barbara AU2 - Wilson, Nicholas AB - This paper examines the firm's decision to use factoring amongst a cross‐sectional sample of 655 manufacturing companies using a rich firm‐level database. The paper develops and tests hypotheses that explain this particular choice of credit and financial management policy. We find strong evidence of a ‘financing demand’ explanation for the use of factoring, and also some support for theories which relate the decision to use a factor to the firm's product characteristics, to market characteristics and to the preferences of the factor (supply constraints). The motivation to use factoring, however, appears to be related more to a demand for asset‐based finance from small companies than to firm‐level choices about organisational structure. TI - Trade Credit Management and the Decision to Use Factoring: An Empirical Study JF - Journal of Business Finance & Accounting DO - 10.1111/1468-5957.00305 DA - 2000-01-01 UR - https://www.deepdyve.com/lp/wiley/trade-credit-management-and-the-decision-to-use-factoring-an-empirical-YBVdkXJGtQ SP - 37 VL - 27 IS - 1‐2 DP - DeepDyve