Trade credits have become vastly important by the beginning of the 21st century as a major source of capital for all businesses in the world. Wal-Mart, the largest retailer in the world report trade credits 8 times the amount invested by its shareholders. Trade credits are also extremely crucial for businesses in emerging markets, where scanty financing alternatives increase costs. Turkey as an emerging market and as a growing economy has to make use of trade credits as a source of capital to increase its competitive power.