Local companies that wish to raise their discount ceilings can normally do so by opening term or savings accounts equal to 5-20 percent of their drawings. Opening irrevocable letters of credit is a straightforward process in Spain. Importers can also insure exchange risk at their banks. A range of financial organizations exist to assist American exporters. They include commercial banks and such private financial sources as factoring, forfeiting, and confirming services.
Government programs are also available to assist the U.S. exporter.
Several federal, state, and local government agencies offer many types of programs. Some are guarantee programs that require the participation of an approved lender. Others provide loans or grants to the exporter or a foreign government. Commercial banks use government guarantee and insurance programs to reduce the risk associated with loans to exporters. Lenders who are concerned with an exporter's ability to pay often use government programs to reduce the risk that would otherwise prevent them from providing finance.