Collateral Transfer Rates & Costs

Collateral Transfer facilities provide an ideal solution to many circumstances. However, it is important to note that these facilities are not cheap and may not suit the smaller budget…

What about Bank Guarantee fees & rates?

Collateral Transfer facilities provide an ideal solution to many circumstances. However, it is important to note that these facilities are not cheap and may not suit the smaller budget.

These facilities can be provided at rates (Contract Fees) of around 6% to 8% per annum. Sometimes rising to 12% or 14% by some Providers.

It should also be noted that if the Principal intends to use the collateral to raise credit lines or loans, that they will also incur credit line interest on the monies borrowed against this collateral. This can vary, depending on the jurisdiction, the bank or the credit record of the borrower. However, typically IntaCapital can arrange credit for around 4,50% per annum, fixed for the term of 12 months.

This means that total costs can often exceed 11% per annum. Before applying for these facilities, it is important that you ascertain that your project can indeed sustain and support these costs. Similarly, it is important to consider your exit strategy (read more about this here) to assess your ability to undertake such fees and rates for Collateral Transfer facilities.

For more information on IntaCapital’s Bank Guarantee fees & rates, do not hesitate to get in touch with a member of our team for more advice.