[Italian, Of belief or trust.] An arrangement in which an agent or factor—an individual who takes possession and agrees to sell goods for another—consents for an additional fee to guarantee that the purchaser, to whom credit has been extended, is financially solvent and will perform the contract.
As the result of a del credere agency, the del credere agent becomes a surety of the purchaser. If the purchaser defaults, the agent is responsible to the principal for the outstanding amount. A del credere commission is the extra fee paid to the agent for such promises.
Law Library - American Law and Legal InformationFree Legal Encyclopedia: Deed of covenant to Direct Tax