At IntaCapital Swiss, we help businesses unlock financial flexibility through secure credit lines and monetisation of assets. By leveraging Bank Guarantees received under Collateral Transfer facilities, companies can secure credit at competitive rates, empowering growth, expansion, and stability.
What is Collateral Transfer for credit lines?
Collateral Transfer provides businesses with access to Bank Guarantees, which can be used to secure Lines of Credit from banks. These guarantees act as collateral, enabling borrowing without tying up existing assets. Banks are typically willing to lend up to 70-80% of the guarantee’s face value, with some lending up to 100%, minus interest and associated fees.
Guarantees are issued under ICC 758 protocol, ensuring internationally recognised and standardised wording. This makes them widely accepted by banks globally as Letters of Guarantee, Credit Facilities Guarantees, or Standby Letters of Credit (SBLC). Importantly, although the Bank Guarantee is obtained through Collateral Transfer, its quality and credibility remain uncompromised, with no reference to “leasing” in the instrument itself.
Understanding lines of credit
A line of credit is a pre-set borrowing limit that businesses can draw from as needed. Similar to a revolving credit facility, funds can be accessed repeatedly once repayments are made. This flexibility makes lines of credit valuable for managing cash flow, funding short-term projects, or covering unexpected expenses.
- Open Line of Credit (Revolving) – Flexible, reusable, but often carries higher interest rates and penalties for late payments.
- Secured Line of Credit – Backed by collateral such as company shares, property, or assets, offering lower interest rates and greater borrowing potential.
Monetisation plays a crucial role in secured credit. Assets like gemstones, shares, or Bank Guarantees are converted into liquid capital, facilitating a secure Line of Credit. If the credit isn’t repaid, the lender gains control of the collateral to recover the loss.
How IntaCapital Swiss can help
If your existing bank is hesitant to provide lending facilities, IntaCapital Swiss can assist by introducing clients to banks and private lenders with an appetite for secured lending. We maintain strong relationships with global financial institutions, ensuring access to alternative funding routes.
Our services include:
- Arranging Credit Lines – Secure credit through trusted lenders using Bank Guarantees or other assets as collateral.
- Asset Monetisation – Convert dormant or underutilised assets into cash to support borrowing.
- Direct Bank Introductions – We facilitate the opening of lending facilities directly with partner banks for selected clients.
Please note: Additional fees apply if IntaCapital Swiss facilitates credit line introductions.
Fees and lending rates
When applying for Lines of Credit through Collateral Transfer, the following costs apply:
- Collateral Fees – Bank Guarantees come with a rental fee (Contract Fee) under Collateral Transfer agreements.
- Interest Rates – International bank lending rates for loans secured by high-quality collateral typically start at 3% per 12-month term, though rates vary based on jurisdiction and currency.
- Lending Terms – Facilities are best suited for terms under 5 years, with typical durations ranging between 1 to 5 years. While longer terms are possible, shorter durations offer more cost-effective solutions.
Advantages of Collateral Transfer for credit lines
- Access to Significant Capital – Facilities start at €10 million and can scale indefinitely, depending on project needs and jurisdiction.
- Flexible Funding – Raise capital without encumbering existing business assets.
- Global Applicability – Available in CHF, EUR, GBP, and applicable across most international jurisdictions.
- Tailored Solutions – Credit facilities designed to meet specific project requirements, with the option of convertible loans at renewal.
- No Personal Guarantees – Lending is secured against the Bank Guarantee or asset, protecting business owners from personal liability.
Get in touch with our team today to discuss lines of credit for your business.
