Table 4 Stages of the credit process and...

Table 4

Stages of the credit process and similarities between groups

			Similarity
Stage of the credit process	Survey question	Respondent's reply	Confrontational and prudential	Prudential and relations-based	Confrontational and relations-based
Organization of the management of accounts receivable	In order to manage their accounts receivable, the business	consults external lawyers	varied
		relies on in-house lawyers
		handles contracts and debts on their own
		accepts the contract terms imposed by the counterparty
Assessment of counterparty risk	At the contract stage, do you check your potential counterparty's financial standing?	do not check the financial standing of a potential counterparty
		examine the financial statements in the National Court Register
		check whether the counterparty is listed in the National Debt Register
		verify the counterparty with a mercantile agency
		verify the counterparty with a credit bureau
		employ other measures
Determining payment terms for the counterparty	Do you have the contracts you sign read by a lawyer?	yes
Determining payment terms for the counterparty	Do you have the contracts you sign read by a lawyer?	no
Determining payment terms for the counterparty	Do the contracts you sign have debt security?	collaterals - yes
Determining payment terms for the counterparty	Do the contracts you sign have debt security?	collaterals - no
Decision-making	Do you choose your counterparties carefully or is the contract concluded because the market shows it is wise to do so?	careful choice	varied		similar at a significance level of 1%
Decision-making		market choice	varied		similar at a significance level of 1%
Collection of overdue amounts receivable	Whenever an amount becomes overdue, does the entrepreneur	go to court to claim it?	varied	similar at a significance level of 1%	varied
		resort to mediation?		similar at a significance level of 1%
		resort to a conciliatory procedure?		varied
		resort to arbitration?		similar at a significance level of 1%

			Similarity
Stage of the credit process	Survey question	Respondent's reply	Confrontational and prudential	Prudential and relations-based	Confrontational and relations-based
Organization of the management of accounts receivable	In order to manage their accounts receivable, the business	consults external lawyers	varied
		relies on in-house lawyers
		handles contracts and debts on their own
		accepts the contract terms imposed by the counterparty
Assessment of counterparty risk	At the contract stage, do you check your potential counterparty's financial standing?	do not check the financial standing of a potential counterparty
		examine the financial statements in the National Court Register
		check whether the counterparty is listed in the National Debt Register
		verify the counterparty with a mercantile agency
		verify the counterparty with a credit bureau
		employ other measures
Determining payment terms for the counterparty	Do you have the contracts you sign read by a lawyer?	yes
Determining payment terms for the counterparty	Do you have the contracts you sign read by a lawyer?	no
Determining payment terms for the counterparty	Do the contracts you sign have debt security?	collaterals - yes
Determining payment terms for the counterparty	Do the contracts you sign have debt security?	collaterals - no
Decision-making	Do you choose your counterparties carefully or is the contract concluded because the market shows it is wise to do so?	careful choice	varied		similar at a significance level of 1%
Decision-making		market choice	varied		similar at a significance level of 1%
Collection of overdue amounts receivable	Whenever an amount becomes overdue, does the entrepreneur	go to court to claim it?	varied	similar at a significance level of 1%	varied
		resort to mediation?		similar at a significance level of 1%
		resort to a conciliatory procedure?		varied
		resort to arbitration?		similar at a significance level of 1%

Source(s): Authors’ own elaboration

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