Raising Lines of Credit & Loans
9 times out of 10 clients that apply to receive a Bank Guarantee or Standby Letter of Credit through Collateral Transfer are doing so with the intention of raising credit or loans…
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Leveraging Raised Funds
Once the Principal has successfully received their collateral and have negotiated a line of credit against it, they are now in possession of short to mid-term business capital…
In what form is “Collateral” injected?
Collateral Transfer facilities are commonly, and more importantly, are wrongly referred to as Bank Guarantee ‘leasing’ as this document will explain. Despite, the injection of capital or collateral is made by the Provider to the Recipient via the Issuing Bank and the Recipient Bank, there is actually never any mention of the word ‘lease’ or ‘rent’….
How does Renewal Work and the costs
How does renewal work and what are the renewal rates / costs? Collateral Transfer facilities are issued for 12 month periods and multiples thereof. However, most facilities are offered initially as 12 month contracts with an option to renew for a further 12 months (year on year), up to a maximum of 60 or 72 months…
Exit Strategies are Important
Collateral Transfer facilities provide an excellent model for short to mid-term financing and solutions for raising capital. However, they are not the be-all and end-all solution to longer term business or project finance…
Opening the Bank to Bank Communications
As Collateral Transfer facilities are founded on the injection of an inter-bank financial instrument (Bank Guarantee or Standby Letter of Credit) from the Provider’s bank to the Recipient’s bank, the transaction relies on both banks talking to each other…
