The Export-Import Bank of the United States (Ex-Im Bank) says it has enhanced several of its trade finance products to help counter tightening credit conditions and the lack of export finance.

The new product offering features enhancements to the range of letter of credit (L/C) products available from the US' export credit agency.

Working with lenders

US Ex-Im Bank says the goal in its product overhaul is to help US exporters, particularly small businesses, to create and maintain export-related jobs.

The enhancements, meant to increase access to direct lending and working capital loan guarantees, include Ex-Im Bank working with lenders to structure transactions to adapt to their financial conditions or restrictions.

Indirect exporters

The changes include a provision allowing companies that sell goods or services to other US companies that subsequently export to apply for working capital loans guaranteed by Ex-Im Bank.

Previously the working capital loan guarantee product has not been available to these companies.

The bank is raising from 10 per cent to 100 per cent the amount of a working capital loan guarantee available for these "indirect" exporters.

L/C enhancements

Ex-Im Bank says it will also now consider covering warranty L/Cs up to 20 per cent of the loan amount or US$1.5 million, whichever is lower, for a term of 12 months.

This according to the bank is a tripling of the previous ceiling of US$500,000.

Reduced collateral

Additionally, the bank says it will now consider, on a case-by-case basis, reducing

collateral requirements for L/Cs to 10 per cent of face value, down from 25 per cent currently.

That compares with 100-percent cash collateral for all L/Cs generally required by the private sector.

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