FINANCIAL INSTRUMENTS


Collateral Transfer

The correct term for “leasing” bank guarantees and Monetisation – bolt on loans & credit lines.

1: About Collateral Transfer

2: Why Use Collateral Transfer?

3: Raising Lines of Credit & Monetising on “Leased” Bank Guarantees.

4: Why Use FCI?
FCI offer a wealth of Knowledge and experience in finding simple solutions to a complex financial issues. We provide a bespoke service for each of our clients, ensuring we maximize results whilst minimizing cost. Some key benefits of using FCI.

a) Fast, Effective & Reliable team
b) Best Change of Success
c) Extensive Knowledge & Experience
d) Supreme Banking and provider Connections.
e) Wide range of solutions to your requirements.

5: Collateral Transfer Facilities Availability & Pricing

About “Leasing” of Bank Guarantees & Collateral Transfer
A flexible means of financing, where a Borrower may have little or restrictedcollateral to open new, or to extend existing loan or credit facilities. Collateral Transfer allows the Borrower to effectively “import” assets (collateral) to their temporary ownership and use the same as security for credit and loans, or for enhancement or other purposes.

A “Provider” enters into arrangements to provide the Borrower use of his collateral and transfer the same to the Borrowers ownership for a given period of time for an agreed Contract Fee. Hence the term “Collateral Transfer”. The Provider effectively acts as an investment partner, placing his assets (cash deposits) With the Borrower for a financial return. This is often done through the medium of a Bankers Letter of Guarantee (Bank Guarantee) rather than investing physical cash.

1: About Collateral Transfer

Discover the key elements about the “leasing” of Bank Guarantees, also referred to as Collateral Transfer. Bank Guarantee “leases” provide solutions for the following:

a) Raise Urgent Collateral to Secure Credit
b) Simple Underwritting Procedure
c) Business Acquisition / Trading Positions
d) Short to Mid Term Financing

The “Lease” or “Leasing” of Bank Guarantees or indeed the “leasing” of Standby letters of Credit (SBLC’s) are undertaken through Collateral Transfer facilities.

Collateral Transfer is the provision of assets from one party (the Provider) to the other party (the Beneficiary), often in the form of a Bank Guarantee. This occurs whereby the Provider agrees (through his issuing bank) to issue a demand guarantee (the Bank Guarantee) to the Beneficiary in return for a rental or return known as the “Contract Fee”. The parties agree to enter into a Collateral Transfer Agreement (CTA) which governs the issuance of the Guarantee.

2: Why Use Collateral Transfer?

Discover the key benefits of using FCI Collateral Transfer Facilities for “leasing” bank guarantees. Main advantages includes:
a) Raise Urgent Business Capital
b) Simple Under writing & Process
c) Use as Security for Credit & Loans
d) Investment Leverage & Trading

3: Raising Lines of Credit & Monetising on “Leased” Bank Guarantees.

All you need to know about raising credit lines for the Bank Guarantees often referred to as monetizing order of Bank Guarantees. Key advantages to raising line

a) Use the Guarantee as credit or loan security
b) High LTV’s due to being “Instantly liquid able”
c) Strong Covenants
d) Internationally accepted

4: Why Use FCI?

FCI offer a wealth of Knowledge and experience in finding simple solutions to a complex financial issues. We provide a bespoke service for each of our clients, ensuring we maximize results whilst minimizing cost. Some key benefits of using FCI.

a) Fast, Effective & Reliable team
b) Best Change of Success
c) Extensive Knowledge & Experience
d) Supreme Banking and provider Connections.
e) Wide range of solutions to your requirements.

5: Collateral Transfer Facilities Availability & Pricing

At FCI, we offer Collateral Transfer Facilities, commonly referred to as Bank Guarantee Leasing. Learn more about our availability & pricing for our Collateral Transfer Agreements and what we cover including:

a) Raise Collateral for Credit Lines
b) Fast & Efficient Solutions
c) $10 M to £500 M Contracts
d) International Bank Covenants

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 9% per annum. Sometimes rising to 12% to 18% by some Providers.

It should 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 borrowers. However, typically FCI can arrange credit for around 4.5% per annum, fixed for the term of 12 months, our service charge is around 5% on top of arrangement fee of provider.

A unique alliance of traditional banking methodology combined with the power of our Corporate Finance representation division in the heart of the City of London, offers our client bespoke solutions from the most powerful financial centres in the world. FCI “Delivering excellence, on time and on target every time”