Collateral Transfer & BG’s

Collateral Transfer & BG’s

The Collateral Transfer Facility is the term used to describe a service where one company (The Provider), transfers a Bank Guarantee to another company (The Beneficiary) for a temporary period of time. Under the terms of the Collateral Transfer Agreement (or C/T Agreement), signed between the Provider and the Beneficiary, the Beneficiary will pay the Provider a contract fee, referred to as the Collateral Transfer Fee.

The Provider and the Beneficiary will enter into a contract, referred to as a Collateral Transfer Agreement, where the Provider agrees to transfer a Bank Guarantee to the Receiving Bank for credit to the Beneficiary’s account. The Beneficiary will pay the Provider a Collateral Transfer Fee for the temporary use of the Bank Guarantee.

The Collateral Transfer Facility utilizes Bank Guarantees issued by World Top 100 Banks, ensuring the highest level of financial security and compliance. The Bank Guarantees are transmitted via SWIFT MT760, which is the industry standard for interbank financial messages.

The Facility operates as follows: IntaCapital Swiss will introduce the Provider to the Beneficiary. Once both parties have completed due diligence, the Collateral Transfer Agreement is signed. The Provider’s bank then transmits the Bank Guarantee to the Beneficiary’s bank via SWIFT.

Collateral Transfer Facilities are becoming increasingly popular with companies looking to raise capital, obtain loans, or secure lines of credit. By utilizing a Leased Bank Guarantee, companies can access capital that would otherwise be unavailable to them.