The Trade Credit Transfer Activity of Small and Medium-Sized Enterprises -Empirical study based on the sampling survey of the SMEs in China

The small and medium-sized enterprises (SMEs) may dispense financial stress, which resulted from providing buyers with trade credit, to suppliers through the supply chain. This is described as "Trade Credit Transfer Activity" caused by SMEs' liquidity requirements in this paper. Based on the sampling survey on the SMEs in China, this paper carries out an empirical study on the correlation between the SMEs' trade credit forms, terms and levels in purchase and those in sale respectively. The results of empirical analysis corroborate the existence of "Trade Credit Transfer Activity" in SMEs' business operation. It may provide a new perspective on SMEs' financing and credit risk management.