The liquidity position of the manufacturer depended not only on the credit which he could gain in purchasing his raw materials and other inputs, but also on the credit which he, in turn, was forced to extend to his customers. Credit practice in the sale of woollen and worsted cloths and yarn varied in accordance with changes in the nature and organisation of trade. This chapter will outline the chronology of change in the geographical distribution of trade, in the state of the home and foreign markets and the way in which the trade was initiated, organised and financed. Little research has been done on the finance of Britain's trade during this important period aside from N. S. Buck's early study of the North American market of the first half of the nineteenth century. Chapman's more recent work has challenged Buck's notion that manufacturers began to dominate the merchanting of British goods after the Napoleonic War. The time is thus ripe for re-examination of the changes occurring in finance and credit provision associated with the export of British manufacturers. How important was manufacturers' capital in this trade compared with funds provided by the mercantile and banking sectors? The answer to this question has, of course, important implications for the supply of finance to extend production.

The nature of change in the trade in wool textiles is best clarified by considering a number of sub-periods which exhibit specific organisational and geographical characteristics.