The Provider or the Provider Groups are internationally renowned as some of the most aggressive traders and investors in the global financial markets. Therefore, it comes as no surprise that these companies mainly consist of Private Equity Funds, Hedge Funds, Sovereign Wealth Funds, Larger Family Offices and institutions holding large cash balances with their banks. What may be surprising is that these companies are also suppliers of Bank Guarantees,  for Collateral Transfer.

For those not in the know, Collateral Transfer is the correct term for Leased Bank Guarantee, whereby a Provider, and other party or company, (known as the Beneficiary), wishing to lease a Bank Guarantee, will enter into a contract, referred to as a Collateral Transfer Agreement.

A Collateral Transfer Agreement is a contract allowing the Provider to transfer a Bank Guarantee to the Beneficiary, for a temporary period of time. The Beneficiary, under the Terms and Conditions of the Collateral Transfer Agreement will pay the cost of using the Bank Guarantee to the Provider, known as the Collateral Transfer Fee.

Providers and Provider Groups are constantly trying to leverage assets that are underperforming, whether it be property, commodities, or securities with small returns such as a bond or MTN, (Medium-Term Note). In some cases, the Provider will securitise these asset and supply Bank Guarantees into the Collateral Transfer market, where the return will enhance the overall return of their non-performing assets.

IntaCapital Swiss, have garnered a reputation as the “Go To” company for companies being denied access to credit lines and loans, also referred to as Credit Guarantee Facilities, by today’s traditional lender. Providers and Provider Groups are irrefutably an important component in IntaCapital Swiss’ business model, as they continue to supply Bank Guarantees for Collateral Transfer.