JOC Staff | Dec 06, 2012 4:41PM EST
The Export-Import Bank of the United States has approved its fourth supply chain finance transaction and will guarantee up to 90 percent of $450 million in liquidity offered by a JPMorgan Chase loan to suppliers of equipment manufacturer Caterpillar.
The guarantee will support small business suppliers by allowing them to obtain cash more quickly and increase liquidity to fulfill new orders.
It also enables JPMorgan to increase its purchases of accounts receivable owned by U.S. suppliers and due from Caterpillar, and that are related to purchases of goods and services by Caterpillar for its export-related production. Exporters have the option to extend payment terms and obtain a working capital benefit without imposing undue financial hardship on their suppliers.