Del Credere Agency

In business law, a del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson or broker for the principal, but also as a guarantor of credit extended to the buyer. If the buyer is unable to pay the bill after the transaction is completed, a del credere agent may become liable for the amount that was unable to be collected.

A del credere agent can most easily be understood as a combination of a salesperson and an insurance firm. Notably, a del credere agent only becomes liable to pay the principal after the buyer defaults on payment. If the principal is unable to collect for some other reason, such as a dispute over the goods delivered, the del credere agent is not liable. Payment for the insurance services is made in the form of an additional sales commission, known as a "del credere commission".


Investment dictionary. . 2012.

Look at other dictionaries:

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  • Del credere — A del credere (Italian for belief or trust) agent, in English law, is one who, selling goods for his principal on credit, undertakes for an additional commission to sell only to persons who are absolutely solvent. His position is thus that of a… …   Wikipedia

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  • agency — A relationship between two persons, by agreement or otherwise, where one (the agent) may act on behalf of the other (the principal) and bind the principal by words and actions. Relation in which one person acts for or represents another by latter …   Black's law dictionary

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