The provision of letters of credit (L/Cs) to support export operations of US small businesses has helped Regions Bank win the US Small Business Administration's (SBA's) 2023 Export Lender of the Year Award.

The bank is part of New York listed Regions Financial Corporation. With US$155 billion in assets, it is a member of the S&P 500 Index. The SBA is a US federal agency dedicated to small business development.

L/Cs covered for buyer defaults

Regions is a preferred SBA lender and makes final credit decisions on SBA-guaranteed loans, cutting down the length of time needed to process transactions.

The bank headquartered in Birmingham, Alabama, also provides a diverse suite of global trade finance options designed to help develop and expand a company's global customer base and negotiate international contracts while minimising financial risk.

Through various standby L/C services, small business owners can support regular supply contracts with foreign buyers and be covered for those goods in the event the buyer defaults on payment.

L/Cs for foreign buyers

Regions' foreign business solutions meanwhile help international companies receive small-business exports from US-based companies by providing financing for purchases.

Through the use of banker's acceptance, foreign companies can receive an L/C for a specified time period.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.