Exporters in California who need working capital to fulfil overseas orders can now more easily qualify for larger export finance loans with lower fees from City National Bank (CNB).

This is because the Export-Import Bank of the United States (US Ex-Im Bank) has recently designated the bank - that counts online letters of credit (L/Cs) amongst its range of international business services - a "High Plus" delegated authority lender.

Higher authority

The US' official export credit agency's higher level of delegated authority allows qualified lenders to approve working capital loans up to US$7.5 million per borrower and receive an Ex-Im Bank guarantee without its prior approval.

The California-based bank's previous designation only allowed up to US$5 million per borrower without prior US Ex-Im Bank approval.

The International Banking Services department at CNB provides online L/Cs, currency management, foreign exchange, foreign credit information and online foreign exchange.

L/C policy

US Ex-Im Bank's letter of credit policy can reduce a bank's risks on confirmations and negotiations of irrevocable letters of credit issued by overseas financial institutions for the financing of US exports.

The policy provides commercial and political coverage against the failure of an overseas issuing bank to make payment or reimbursement to the insured bank on an irrevocable L/C.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.