This paper examines the relationship between trade credit, financial intermediary development, and industry growth. Using data from 37 industries across 44 countries, the authors find that industries with higher reliance on trade credit tend to grow more rapidly in countries with less developed financial institutions. This suggests that trade credit can serve as a substitute for formal financial intermediation in such environments. The results are robust to various specifications and alternative measures of financial development. The study also finds that the growth of existing firms, rather than the creation of new firms, is primarily responsible for the observed growth differences. This implies that trade credit is more accessible and effective for established firms, which have better reputations and access to information. The findings support the idea that trade credit is a "last resort" financing option for firms with limited access to formal financial markets. The paper also explores the factors that influence trade credit availability, including industry-specific characteristics such as product differentiation, input requirements, and the need for quality guarantees. These factors can affect a firm's ability to access trade credit, which in turn influences its growth potential. The authors use a variety of measures to assess trade credit dependence, including the ratio of accounts payable to total assets and the ratio of accounts payable to total liabilities. They also compare these measures with alternative indicators of financial development, such as market capitalization and domestic credit. The results consistently show that trade credit dependence is more significant in countries with less developed financial systems. The study concludes that trade credit plays an important role in firm financing and growth, particularly in countries with underdeveloped financial markets. This challenges the notion that trade credit is solely a tool for reducing transaction costs, and highlights its broader role in economic development. The findings also suggest that trade credit may be less accessible to new firms, which could have implications for industry competition and distributional outcomes.This paper examines the relationship between trade credit, financial intermediary development, and industry growth. Using data from 37 industries across 44 countries, the authors find that industries with higher reliance on trade credit tend to grow more rapidly in countries with less developed financial institutions. This suggests that trade credit can serve as a substitute for formal financial intermediation in such environments. The results are robust to various specifications and alternative measures of financial development. The study also finds that the growth of existing firms, rather than the creation of new firms, is primarily responsible for the observed growth differences. This implies that trade credit is more accessible and effective for established firms, which have better reputations and access to information. The findings support the idea that trade credit is a "last resort" financing option for firms with limited access to formal financial markets. The paper also explores the factors that influence trade credit availability, including industry-specific characteristics such as product differentiation, input requirements, and the need for quality guarantees. These factors can affect a firm's ability to access trade credit, which in turn influences its growth potential. The authors use a variety of measures to assess trade credit dependence, including the ratio of accounts payable to total assets and the ratio of accounts payable to total liabilities. They also compare these measures with alternative indicators of financial development, such as market capitalization and domestic credit. The results consistently show that trade credit dependence is more significant in countries with less developed financial systems. The study concludes that trade credit plays an important role in firm financing and growth, particularly in countries with underdeveloped financial markets. This challenges the notion that trade credit is solely a tool for reducing transaction costs, and highlights its broader role in economic development. The findings also suggest that trade credit may be less accessible to new firms, which could have implications for industry competition and distributional outcomes.