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’….

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 this, 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’.

Bank Instruments, often known as Letters of Guarantee, Bank Guarantees and Standby Letters of Credit (SBLC’s) sent in this way are standard bank instruments. There is no difference between an instrument remitted under a Collateral Transfer facility and an instrument issued in a more conventional manner. Any person that tells you otherwise is simply wrong.

Officially, the bank instrument (the medium) is remitted to the Recipient Bank for the benefit of the Recipient as a form of “investment” from the Provider.

This investment is evidenced by the Collateral Offering Contract and the Collateral Transfer Agreement. It should be treated in the same way as if the Provider was investing physical cash.

What is Collateral Transfer?

  • About Collateral Transfer

Discover the key elements about the ‘leasing’ of Bank Guarantees, also referred to as Collateral Transfer.

Learn more

  • Why Use Collateral Transfer?

Explore the benefits of using InterCapital Swiss’ Collateral Transfer Facilities for ‘leasing’ bank guarantees.

Learn more

  • Lines of Credit & Monetisation

All you need to know about raising Credit lines for Bank Guarantees, often referred to as monetising on Bank Guarantees.

Learn more

  • Why Use IntaCapital Swiss?

IntaCapital Swiss offer a wealth of knowledge and experience in finding simple solutions to complex financial issues.

Learn more

  • Facilities & Pricing

Learn more about our availability & pricing for our Collateral Transfer Agreements and what we cover.

Learn more

  • Frequently Asked Questions

Any questions about Collateral Transfer, Bank Guarantees or Letters of Standby Credit? Let us answer your questions…

Learn more

IntaCapital Swiss SA (@Intacapital)

Collateral Transfer is an ever-growing term across the internet, inform yourself wisely at Intacapitalswiss.com

IntaCapital Swiss SA (@Intacapital)

RT @CreditSuisse: With the breakdown of coalition talks, we look at the three remaining scenarios that German parties could take in the wee…

Contact Us

Get in touch today by calling us on
+41 225 441 653
or by emailing us at
admin@intacapitalswiss.ch