Research on Influencing Factors of Small and Medium Enterprises Trade Credit Financing-Based on Panel Data of Shaanxi SMEs

On the condition that it is difficult for small and medium enterprises (SMEs) to finance from specialized financial institutions such as banks, trade credit has been an important financing channel for SMEs. On the basis of theoretical research on trade credit, several hypotheses on the influencing factors of SMEs trade credit financing are proposed in this paper. And the panel data of 87 samples of Shaanxi SMEs from the year 2003 to 2007 are used to conduct an empirical test on relevant hypotheses. Results of the empirical test indicate that factors such as the scale of SMEs, debt level, short-term loan status, earnings position, the level of providing trade credit and enterprise age, have significant effect on the SMEs' ability of trade credit financing.