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.