Why use collateral transfer Facilities 0047

Why use collateral transfer Facilities?

Entrepreneurs may choose to adopt Collateral Transfer facilities, commonly KNOWN as the “Leasing” of Bank Guarantees, as they often need to raise urgent business capital and do not necessary have adequate security to obtain it conventionally through standard commercial loans.

“Sometimes, it is also required that investors need to raise large sums of capital to enter trade positions. They may choose to leverage their capital to access a higher level investment platform or to temporarily underpin larger deals such as buy & sell commodity contracts or for use as corporate surety.

Collateral Transfer, or the “leasing” of Bank Gurantees, can be used for:

• Raising Loans and Lines of Credit
• Security for other credit facilities such as trade finance.
• Surety and other third party financial commitments
• Trading and overdraft security.

Key benefits:
• As Security for short to mid term loans
• As Project Finance up to 5 years in term
• For property Construction
• For Commodity contracts and buy / sell or sell / buy positions.
• For Trade programs and investment.

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.

Application Asset Monetization

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