Why does Export Credit Guarantee Agency issue pre-shipment credit guarantees on behalf of credit insured exporters to commercial banks?

The Agency issues pre-shipment credit guarantee to commercial banks in order to assist the exporters in obtaining pre-shipment financing for the purpose of purchasing raw materials, processing/manufacturing and packing of goods to be exported.

The guarantee fills the security gap needed especially for small sized exporters who are in need of such financing but lack necessary collateral.