THE IMPACT OF TRADE CREDIT ON SMALL AND MEDIUM ENTERPRISES IN NIGERIA

Abstract

SME’s are basic for the advancement of any economy since they structure the weight of financial commitment in creating economies. Trade credits are one of the stimulators of the economy and SMEs. The connection between trade credit and SMEs cannot be belittled which enables this study to examine the impact of trade credit on small and medium enterprises using Nigeria as a case study. We used questionnaire to collect data. The empirical section is started with frequency analysis. To test the hypothesis constructed, logistic regression and correlation analysis are used. The results show that the cost of trade credit affects SMEs positively and significantly. The credit grant has a significant and positive effect on SMEs. Government restriction has no impact on SMEs.