This paper examines the relationship between trade credit, financial intermediary development, and industry growth. The authors find that industries with higher dependence on trade credit financing exhibit higher growth rates in countries with weaker financial institutions. They also show that most of the growth effect is driven by the expansion of existing firms rather than new establishments. The study uses a panel of 37 industries and 44 countries, employing a methodology similar to that of Rajan and Zingales (1998). The results suggest that trade credit serves as a substitute for formal financial intermediation in countries with underdeveloped financial markets, particularly for mature firms. The paper discusses various theories of trade credit provision and the robustness of the findings to different measures of financial development and industry characteristics. The authors conclude that trade credit plays a significant role in firm financing and growth, challenging the notion that it exists solely to reduce transaction costs.This paper examines the relationship between trade credit, financial intermediary development, and industry growth. The authors find that industries with higher dependence on trade credit financing exhibit higher growth rates in countries with weaker financial institutions. They also show that most of the growth effect is driven by the expansion of existing firms rather than new establishments. The study uses a panel of 37 industries and 44 countries, employing a methodology similar to that of Rajan and Zingales (1998). The results suggest that trade credit serves as a substitute for formal financial intermediation in countries with underdeveloped financial markets, particularly for mature firms. The paper discusses various theories of trade credit provision and the robustness of the findings to different measures of financial development and industry characteristics. The authors conclude that trade credit plays a significant role in firm financing and growth, challenging the notion that it exists solely to reduce transaction costs.