A Bank Guarantee Provider

Providers of Bank Guarantees, are to be found in most financial centres in the world. Whilst the majority of these companies such as Hedge Funds, Sovereign Wealth Funds, Private Equity Funds, and Larger Family Offices are major traders and investors, Leased Bank Guarantees, the correct term being Collateral Transfer, forms a small part of their business.

Providers and Provider Groups, utilise some of their vast assets to supply Bank Guarantees for Collateral Transfer, and to this end must enter into a contract, referred to as a Collateral Transfer Agreement, with another company, (the Beneficiary).

A Collateral Transfer Agreement is basically an agreement between two companies, the Provider and the Beneficiary, where the Provider transfers a Bank Guarantee to the Beneficiary, for a limited period of time, for which they receive a payment, alluded to as the Collateral Transfer Fee.

Provider Groups enjoy large portfolios which inevitably contain underperforming assets, or assets with comparatively small interest rates, and it is these assets that when securitised against the issue of Bank Guarantees for Collateral Transfer, earn the Providers an increased rate of return.

IntaCapital Swiss work hand in hand with many Providers, and through their very popular Collateral Transfer Facility, that utilises Bank Guarantees, are able to offer companies access to loans and credit lines, also known as Credit Guarantee Facilities.