Abstract
The present paper is an empirical investigation of how collateral is used and perceived by experienced credit managers. In particular, managers' attitudes, intentions, and behavior were investigated. The empirical material was based on in-depth interviews as well as a nation-wide survey. It was found that the average attitude of the participating managers was one of constraint and that collateral was requested only in about two out of ten trade-credit cases. A weak negative correlation between risk propensity and attitudes towards collateral was found. It was not possible to find any particular type of business, performance, or other characteristics associated with any particular attitudes, intentions, and behavior. The findings are relevant to researchers in the field of business studies, economic psychology, finance, law, and risk research.