New exporters must earn trade credit, especially in risky places

The World Bank studied how new exporters get paid. It turns out they start with cash payments and only get credit after they build trust. This happens faster in riskier countries or for less experienced companies. This means banks and governments can now design better programs to help new businesses trade internationally, understanding how credit relationships actually form.

It was unclear exactly how new businesses built trust to get trade credit. This paper shows the specific path: cash first, then credit, with speed depending on risk and experience. This means export credit agencies and banks can stop guessing. They can now offer more targeted support to help new companies navigate the early, cash-only phase of international trade.