Abstract
In this chapter we address the issue of small firms’ access to bank finance, in the context of their entry to secondary equity markets and specifically Britain’s Unlisted Securities Market (the USM, set up by the Stock Exchange in late 1980). Previous research, such as Bates (1964), Wilson (1979a), or Ray and Hutchinson (1983), indicates that small companies employ more debt, generally in the form of short-term borrowing from trade creditors and the banking sector, in their capital structures. That research suggests that, given the risk associated with small firm lending, banks could be reluctant to lend in the absence of a strong equity capitalisation.
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© 1990 Edward P. M. Gardener
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Buckland, R., Davis, E. (1990). Bank Borrowing, Small Firms, and the USM. In: Gardener, E.P.M. (eds) The Future of Financial Systems and Services. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-10439-0_8
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DOI: https://doi.org/10.1007/978-1-349-10439-0_8
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