Management Science 2016
Financing Based on Relationship: Case of Moroccan SMEs
Abstract
The main aim of this paper is to highlight a financing mode based on relationship. We examine the relational financing in the specific framework of relationship between small and medium-sized enterprises (SMEs) and Banks. We show across a qualitative study that the establishment of a relational financing mode enables SMEs managers to reinforce their interaction experience and to enhance their negotiation capabilities. The SME manager's interpersonal competence and his bargaining ability become for the banker a vector of assessing failure risk of his client. The results of this study emphasizes how important it is for SMEs to use their interaction experience with banks so as to acquire more capacity when negotiating.
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