There is a great need for credit in the diamond industry. As explained above, even the largest sight holders need credit to finance the purchase of their boxes of rough. Similarly, non-sight holders also acquire most of their stones on a cycle that follows, but lags behind, the schedule of sights. They therefore need credit to enable them to purchase enough stones to keep their cutters working until the next sight. Access to credit is also essential in the market for polished stones. Because polished stone sales are highly seasonal, with 30-40 percent occurring in November and December, access to credit is needed to avoid a cash shortfall.

XREF: Connects to broader understanding of how commodity supply chains are capital-intensive and credit-dependent, similar to other bulk raw material trades.

Lisa Bernestein, Opting out of the Legal Sys…, loc. 113