Exporters′ Credit Policy: An Anglo‐West German Comparative Study

Abstract

Credit is usually regarded as a minor determinant of customer patronage although it may clinch deals when other components of the marketing mix appear equally attractive. The role and determinants of trade credit policy in general are examined before focusing on the credit decision in international trade. Data from a sample of UK and West German exporters indicate that, while the role of credit is subordinate to most other components of the marketing package, it does attract particularly high ratings from UK exporters. Generally, UK firms are more likely to pursue an active and differentiated credit policy, and international differences in credit policy are more pronounced than inter‐industry differences.