Governments around the world are increasingly mandating the digitalisation of business records, yet little is known about the effects of these policies beyond tax compliance. This column discusses how mandatory electronic invoicing reshapes credit markets by changing the information available to lenders. The evidence shows that eInvoicing reallocates credit toward firms that already rely on invoice-based financing and away from other firms, as banks become better at assessing the credit risk of the former relative to the latter.



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