Trade credit market diagnostification (The Albanian case)

 MBA/MMK Uarda Hoti

PhD Candidate

Abstract
Lack of liquidity to our economy in recent years has caused many financial problems to small and medium businesses. Found in this situation, businesses are increasing their efforts to provide the necessary funding at cheaper cost. Trade credit, is currently being estimated as a financing mean that meets at best demands and needs of businesses, especially SMEs.
The ever-increasing use of trade credit by the private sector in Albania has caused many businesses to expose to revenue risk. To create a clearer picture of this phenomenon, we have taken 130 businesses that offer trade credit to their clients, into analysis. The data for this paper are extracted from interviews with sales department managers. The study is focused on small and medium trade businesses in the district of Tirana.

Keywords: revenue risk, trade credit, suppliers, clients