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Middle-market deal credit risk rises as trade finance insurance demand grows
US business bankruptcies rose 16.9% to 26,941 in the 12 months ended June 30, 2026, widening demand for trade credit insurance as revenue growth accelerates.
Trade credit insurance brokers are seeing a growing opportunity as the US middle market expands and carries more customer credit risk on corporate balance sheets, Insurance Business reports. The outlet points to the National Center for the Middle Market data showing nearly 200,000 US businesses with 2026 annual revenues between $10 million and $1 billion, representing one-third of private-sector GDP and about 48 million jobs.
Insurance Business says its mid-year 2026 survey found 82% of these companies reported year-over-year revenue gains, with average revenue growth of 11%. It also highlights that this growth is occurring amid a tougher credit environment, with business bankruptcy filings up 16.9% to 26,941 in the 12 months ended June 30, 2026, compared with 23,043 a year earlier, according to the Administrative Office of the US Courts.
The reporting describes a shift in how middle-market firms may use trade credit insurance, noting that these businesses can have sizable receivables exposure while running smaller internal credit teams. It also says a growing share of companies are using debt financing to support growth, and seven in 10 expect revenue to keep increasing through mid-2027.
Christina Montes De Oca, CEO of Coface North America, told Insurance Business that middle-market trade credit insurance needs can differ from large multinationals. She said smaller firms may use the coverage to support and strengthen internal credit practices and procedures, while larger companies can apply it more selectively, including to exceed capacity limits or structure financing.