We understand that accessing capital can be crucial for growth, expansion, or stabilising operations. By leveraging Bank Guarantees received through Collateral Transfer facilities, businesses can secure lines of credit or loans, providing the financial flexibility needed to move forward confidently.
What is a bank guarantee and how can it help?
A bank guarantee is a powerful financial tool that can secure credit or loans, acting as collateral for lenders. Through Collateral Transfer, businesses receive these guarantees from top-tier banks, allowing them to secure financing without encumbering existing assets.
Banks typically lend 70-80% of the guarantee’s face value – sometimes up to 100% – with the term matching the duration of the guarantee (usually between 1 to 5 years). This allows businesses to raise substantial capital to fund projects, open trading positions, or manage cash flow.
Benefits at a glance:
- Fast Access to Credit – Use Bank Guarantees to secure loans quickly.
- Flexible Lending Terms – Loans available from €10 million upwards, with terms of up to 5 years.
- Accepted Globally – Guarantees issued under URDG 758 (Uniform Rules for Demand Guarantees), ensuring acceptance by most international and private banks.
- No Asset Risk – Collateral Transfer provides capital without leveraging existing company assets.
Understanding monetisation
Monetisation refers to the process of converting Bank Guarantees or Standby Letters of Credit (SBLCs) into liquid capital. This approach allows businesses to unlock value from their financial instruments, raising capital to finance projects or secure trading positions.
How It Works:
- Collateral Transfer – Obtain a Bank Guarantee through our Collateral Transfer facilities.
- Secure Loan Facilities – Use the guarantee to secure a line of credit or loan.
- Flexible Funding – Capital can be used for business expansion, refinancing, or working capital.
How we simplify the process
At IntaCapital Swiss, we manage the complexities of securing credit and monetising financial instruments, making the process as seamless as possible for our clients. From initial consultation to the finalisation of credit facilities, our dedicated team ensures your experience is as efficient and straightforward as possible.
Whether you’re seeking to finance a new project, stabilise cash flow, or explore new market opportunities, we are here to help.
Lending Rates and Terms
Interest rates for loans secured against high-quality guarantees typically start at 3% per annum, depending on jurisdiction and currency. Lending terms usually align with the duration of the Bank Guarantee, generally ranging from 1 to 5 years.
While these facilities are well-suited to short and mid-term projects, longer terms of up to 7 years can be arranged in certain circumstances.
When applying for credit using Bank Guarantees, it’s important to consider the associated costs:
- Contract Fee – Covers the rental of the Bank Guarantee under Collateral Transfer.
- Interest Charges – Applies to the loan or credit line secured against the guarantee (typically linked to EURIBOR or LIBOR rates).
- Transaction Fees – Deducted from loan proceeds and payable upon successful completion of the process.
We believe in full transparency, ensuring that all fees are clearly outlined before any commitments are made.
