Nicholas, J., Holt, Gary David and Mihsein, M. (2000) Contractor financial credit limits; their derivation and implications for materials suppliers. Construction Management and Economics, 18 (5). pp. 535-545. ISSN 0144-6193
Full text not available from this repository.
Official URL: http://dx.doi.org/10.1080/014461900407347
Current methodologies for ‘calculating’ contractors' credit limits (for supply of construction materials) are discussed and critically appraised. It is highlighted that credit limit imposition should be a function of a supplier's financial characteristics as well as potential debtors' probability of defaulting upon repayment. A conceptually new approach is presented to identify whether an additional contractor's trade results in a worthwhile gain in utility for the supplier. It is identified, inter alia, that (i) allowing very few contractors credit facilities that account for a large proportion of suppliers' potential profits, (ii) having inaccurate creditworthiness evaluation procedures, and (iii) operating on low targeted profit margins are the characteristics that inflict maximum financial risk upon materials suppliers.
|Subjects:||Engineering > Civil engineering|
|Schools:||Faculty of Science and Technology > School of Engineering|
|Deposited By:||Gary David Holt|
|Deposited On:||19 Aug 2013 12:48|
|Last Modified:||09 Aug 2016 15:19|
Downloads per month over past year
Downloads for past 30 days
Repository Staff Only: item control page