Credit Lines

The lack of available credit lines is proving to be disastrous for many companies, but Europe’s market leader in Collateral Transfer, (See Collateral Transfer), IntaCapital Swiss, (See About IntaCapital Swiss), have proved to be invaluable in offering companies access to loans and lines of credit, referred to as Credit Guarantee Facilities , (See More Information).

IntaCapital Swiss can offer short-term financing of one to two years, (but can offer financing of up to seven years), and working hand in hand with Providers, IntaCapital Swiss, through their highly popular Collateral Transfer Facility, offer Leased Bank Guarantees, (See What Is a Leased Bank Guarantee), which companies can take to their bank in order to obtain credit facilities.

For further details on a Provider, please go to “Who Are Providers And What Are Their Benefits From Leasing Bank Guarantees”.

The Beneficiary of a Bank Guarantee, (See What Is a Bank Guarantee), must make sure they have a Demand Bank Guarantee to offer as security, before approaching their bankers to request Credit Guarantee Facilities. A Demand Bank Guarantee is governed by ICC Uniform Rules for Demand Guarantees, (URDG 758), and the precise and specific verbiage contained therein, assures lending banks that this security for Credit Guarantee Facilities is unimpeachable.

At this point, it is pertinent to mention that a few banks, have in the past, declined applications for Credit Guarantee Facilities even though a Demand Bank Guarantee is being offered as security. IntaCapital Swiss, with their usual professionalism, have foreseen this problem, and are able to introduce third-party lenders who will replace these banks, and offer loans and lines of credit against the collateral of a Demand Bank Guarantee.

For further information on ICC Uniform Rules for Demand Guarantees, (URDG 758), please go to “bankguaranteefacts.com”, (see Format).

The annual terms as offered by IntaCapital Swiss for Bank Guarantees, will be dependent on the availability of collateral, as, if Bank Guarantees are in short supply the cost will be at a premium. Furthermore, if the bank issuing the Bank Guarantee is Investment Grade, (BBB- to AA+), the Provider will charge in the region of 16%, but will only charge circa 6% if the Issuing Bank is non-investment grade.

Additional annual costs to be borne by the Beneficiary of the Bank Guarantee will be one year’s cost of borrowing, and will be contingent on the prevailing 12-month Libor or 12-month Euribor rate at the time of signing contracts. Other costs that are first year costs only are booking fees, due diligence fees, arrangement and legal fees.