IDEAS home Printed from https://ideas.repec.org/a/taf/ujbmxx/v51y2013i2p235-255.html
   My bibliography  Save this article

Personal Guarantees, Loan Pricing, and Lending Structure in Finnish Small Business Loans

Author

Listed:
  • Janne Peltoniemi
  • Markku Vieru

Abstract

This study analyzes the role of personal guarantees and collateral in the context of two different lending structures: one transaction and the other relationship based. The innish bank data, which were uniquely accessible for the study, enabled an exploration of credit files with specific details of the characteristics of the lending relationship during the period 1995–2001. According to the empirical results, the use of personal guarantees is an indication of transaction‐based lending. Personal guarantees seem to increase the loan premium in transaction‐based loans more than in relationship‐based loans. Close ties between a bank and a firm seem to be a desirable basis for small and medium‐sized enterprise bank lending.

Suggested Citation

  • Janne Peltoniemi & Markku Vieru, 2013. "Personal Guarantees, Loan Pricing, and Lending Structure in Finnish Small Business Loans," Journal of Small Business Management, Taylor & Francis Journals, vol. 51(2), pages 235-255, April.
    • Handle: RePEc:taf:ujbmxx:v:51:y:2013:i:2:p:235-255
    DOI: 10.1111/jsbm.12015
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jsbm.12015
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1111/jsbm.12015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cowling, Marc & Yang, Huan, 2024. "Do loan interest rate margins and loan fees move in the same direction and are they jointly determined?," Finance Research Letters, Elsevier, vol. 60(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ujbmxx:v:51:y:2013:i:2:p:235-255. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ujbm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.