To begin an application, we require a completed Client Information Profile, commonly referred to as a CIP. This can be completed using our downloadable CIP form or submitted online through the CIP Form page.
Once received, we will acknowledge your application and begin our initial review.
1. Compliance and Initial Assessment
IntaCapital Swiss is required to carry out due diligence, identity verification and compliance checks on every applicant. Our compliance team will review the information provided and may request supporting documents where necessary.
Once these checks have been completed satisfactorily, the application will be presented to our financiers for initial consideration.
2. Indicative Terms
Following initial acceptance, our financiers will assess the funding requirement and identify a suitable collateral provider and lending structure.
Indicative Terms will then be prepared. These provide an initial outline of the facility that may be available, including:
- The proposed loan amount
- The maximum collateral value available
- The expected term
- Indicative pricing and costs
- The proposed transaction structure
Indicative Terms are provided for illustration and discussion purposes only. They are not a binding commitment to provide funding.
3. Formal Term Sheet
Where the Indicative Terms are acceptable, detailed terms will be obtained and presented to the applicant in a formal Term Sheet.
The Term Sheet will set out the principal terms of the proposed facility, including:
- The loan amount
- The duration of the facility
- The collateral provider
- Interest and pricing
- Fees and costs
- Conditions of the facility
- Transaction procedures
The applicant is under no obligation to accept the Term Sheet. However, where the terms are accepted, the applicant must sign and return it within its stated validity period, which is usually 14 days.
The applicable Booking Fee becomes payable when the Term Sheet is accepted. Once signed by the relevant parties, the Term Sheet forms a binding agreement for the facility, subject to its conditions.
4. Allocation of the Collateral
After receiving the signed Term Sheet and Booking Fee, IntaCapital Swiss begins the process of securing and allocating the required collateral with the Provider.
The Provider will then issue a formal Collateral Offer to the applicant, who becomes the Beneficiary of the collateral arrangement.
The Collateral Offer sets out the agreement between the Provider and the Beneficiary for the provision, receipt and use of the collateral. It will usually be available for acceptance for a limited period, typically between 7 and 10 days.
In some cases, the Provider may request a meeting with the Beneficiary to present or complete the Collateral Offer. Where a personal meeting is impractical, alternative arrangements may be agreed. IntaCapital Swiss and its financiers remain available to support the applicant throughout the process.
5. Security Deposit
Where required by the Provider, the Beneficiary may be asked to pay a refundable Security Deposit.
The amount, payment terms and circumstances under which the deposit is refundable will be clearly stated in the Collateral Offer. The deposit will normally be paid directly to the Provider or into an approved escrow arrangement established for the transaction.
6. Custody of the Collateral
Once any required deposit has been received, the Provider will request details of the Beneficiary’s proposed custodian.
This will usually be the Beneficiary’s bank or another approved financial institution that is able to hold or acknowledge the collateral in accordance with the agreed transaction structure.
The Beneficiary must ensure that its chosen bank or custodian is willing and able to participate in the transaction.
7. Contract Fees and Completion Fees
Before the collateral is transferred or made available, the Beneficiary may be required to demonstrate that it has sufficient funds to pay any outstanding Contract Fees and IntaCapital Swiss Completion Fees.
Where IntaCapital Swiss is also arranging the associated loan facility, the lender may be able to provide evidence of funds and settle eligible fees directly from the loan proceeds at completion.
Where the Beneficiary is arranging its own lending or credit facility, it will be responsible for demonstrating that the necessary funds are available.
8. Completion and Funding
Once all contracts, compliance requirements, custody arrangements and payment obligations have been satisfied, the collateral transaction can complete.
The collateral is then made available in accordance with the agreed structure, enabling the lender to proceed with the associated loan or credit facility.
9. End of the Contracted Term
The Beneficiary must ensure that any loan, lien, charge or other encumbrance placed over the collateral is removed before the collateral facility expires.
This will normally be required at least five banking days before the end of the contracted term, allowing the collateral to be released and returned in accordance with the agreement.
Expected Timescale
Applicants should generally allow between 8 and 12 weeks for the full application, compliance, contracting, collateral allocation and completion process.
A faster completion may be possible where all parties respond promptly and provide the required documents without delay. However, even in straightforward cases, a minimum period of approximately four weeks should be anticipated.
We believe it is important that every applicant fully understands the structure, costs, responsibilities and procedures involved before entering into a facility. Our team is available to explain each stage and answer any questions throughout the process.
