Summary of the analysis of the potential effects of commercial insolvency legislation on the terms and conditions of external financing for SMEs – Table of contents

Study conducted for the Office of the Superintendent of Bankruptcy

By Jocelyne Gosselin, Benoit Mario Papillon and Sébastien Deschênes

October 2007

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Printable Version: Summary of the analysis of the potential effects of commercial insolvency legislation on the terms and conditions of external financing for SME (PDF Format 1.48 MB — 104 pages)

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Acknowledgements

The authors would like to thank the Office of the Superintendent of Bankruptcy for the financial assistance provided for the research on which this report is based. The opinions expressed in this report do not necessarily reflect those of the Office of the Superintendent of Bankruptcy, Industry Canada or the Government of Canada.

Table of contents

Text of the report (Jocelyne Gosselin and Benoit Mario Papillon)

• 1. Introduction
  • 1.1 Purpose and scope of the research
  • 1.2 Objective of the report
  • 1.3 Amendments to the law relevant to the research subject
• 2. Credit transaction and information asymmetry
  • 2.1 The variables characterizing the transaction
  • 2.2 The bank credit accessibility model
  • 2.3 Factors involved in trade credit
  • 2.4 Businesses in financial difficulty, insolvency and access to credit
• 3. Certain characteristics of parties bound by an external financing transaction and their impact on the transaction
  • 3.1 SMEs
  • 3.2 Financial institutions
  • 3.3 Suppliers
• 4. Applications of the model to identify the effects of C- 47
  • 4.1 A change in the amount of credit
  • 4.2 An increase in interest rates
  • 4.3 A change in how business is conducted
• Conclusion