Purpose - Existing studies that documented the effect of financial distress on trade credit provisions did not include measures financial constraint. It is possible that financial distress is tie to financial constraints, and both financial distress and financial constraints mutually reinforce each other in their effects on trade credit provision. The purpose of this study is to evaluate the effects of financial constraint and financial distress on trade credit provisions in the UK FTSE 350 listed firms. Design/methodology/approach - This study employs panel data in the estimation of the determinants of accounts payables and accounts receivables of the UK FTSE 350 firms from 2009 to 2017. Findings - This study finds that financial distress has significant positive effect on accounts payables and a significant negative effect on accounts receivables. Financial constraints have significant negative effect on accounts payables and a significant positive effect on accounts receivables. Practical implications - Trade creditor desiring to maintain an enduring product-market relationship grant more concessions to customer in financial distress. The amount of trade credit that sellers provide to financially constrained firm is an increasing function of the buyer's creditworthiness. The urgent cash needs of financially distressed firms lead them to sell trade receivables to factoring company leading to reduction in trade receivables. Firm facing external financing constraints increase trade credit to customers in anticipation of cash flow inflow to enhance liquidity. Originality/value - This study shows that financial distress and financial constraints mutually reinforce each other in their effects on trade credit provisions, and firm's financing condition contributes to divergence in trade credit policies.

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财务困境和融资约束对贸易信贷准备金的影响

目的-记录财务困境对贸易信贷准备金影响的现有研究不包括财务约束措施。财务困境可能与财务约束联系在一起，财务困境和财务约束在相互之间对贸易信贷提供的影响上相互加强。这项研究的目的是评估英国FTSE 350上市公司中金融约束和金融困境对贸易信贷准备金的影响。设计/方法/方法-这项研究使用面板数据来估算2009年至2017年英国FTSE 350公司的应付账款和应收账款的决定因素。调查结果-该研究发现财务困境对应付款有明显的正面影响，对应收账款有明显的负面影响。财务限制对应付账款产生重大负面影响，对应收账款产生重大正面影响。实际含义-希望维持持久的产品市场关系的贸易债权人为处于财务困境中的客户提供了更多优惠。卖方向受财务约束的公司提供的贸易信贷额度是买方信誉度的一项日益重要的功能。财务困境企业的迫切现金需求导致他们将贸易应收款出售给保理公司，导致贸易应收款减少。面对外部融资限制的公司在预期现金流量流入的情况下增加了对客户的贸易信贷，以增强流动性。独创性/价值-这项研究表明，财务困境和财务约束对贸易信贷准备金的影响相互增强，而公司的融资状况则导致贸易信贷政策的差异。