DETERMINANTS OF THE CHOICE LEASING VS BANK LOAN: EVIDENCE FROM THE FRENCH SME BY KACM
Keywords:
Leasing, credit rationing, SME, Self organising maps (SOM)Abstract
The question of leasing credit as a substitute or complement of a banking loan has still not been resolved in the financial
literature. As a continuation of these arguments, the objective of this article is, on the one hand, to determine the
characteristics of firms using leasing credit and on the other hand, to better understand the relationship between leasing
and credit rationing.
Firstly, our results suggest that SME use leasing all the more the leasing so when they are young, leveraged, less
solvent and that they present an small size and an important failure probability. Thus, leasing pushes back the limits of
banking debt for firms that have no access to it. Secondly, our results suggest a strong and significant relationship
between credit rationing and the use of leasing. In this framework the latter appears to be a last resort financing.
