Who are Providers and what are their Benefits?
Providers and Provider Groups are the backbone of Collateral Transfer, which for the uninitiated is the correct technical term for Leased Bank Guarantee. Provider Groups are renown for their elaborate and trailblazing investments, and are alluded to as Private Equity Funds, Hedge Funds, Sovereign Wealth Funds and Larger Family Offices.
In the world of investments, Provider Groups’ access to assets is second to none, and it is a small part of their portfolios that they utilise for supplying Bank Guarantees, for Collateral Transfer. Companies looking to lease a Bank Guarantee will have to enter into a contract with a Provider, referred to as a Collateral Transfer Agreement.
A Collateral Transfer Agreement, is not as the uninformed tend to think a highly complex document, it is a contract whereby the Provider can transfer a Bank Guarantee to another company, (referred to as the Beneficiary), for an agreed period of time, usually one year. Under the Terms and Conditions of the Collateral Transfer Agreement the Provider must receive payment from the Beneficiary for use of the Bank Guarantee. This payment is referred to as the Collateral Transfer Fee
As with most investment portfolios, contained within are those assets that are underperforming, and this is true even for some of the most sophisticated of investors, the Provider Groups. However, the Provider Groups can collateralise their underperforming assets and utilise them to supply the Collateral Transfer market with Bank Guarantees for which they obtain a Collateral Transfer Fee. This fee together with the current return on these assets, returns them to performing status.
IntaCapital Swiss, continue to upgrade their star financial models including their ultra-modern Collateral Transfer Facility. The Collateral Transfer Facility utilises Bank Guarantees, supplied by the ever-growing number of Provider Groups that are working hand in hand with IntaCapital Swiss, to provide access to loans and lines of credit, referred to as Credit Guarantee Facilities, to companies in Europe, the Middle East, the Asian Continent and the Pacific Rim.