Who Are Providers?

Providers or Provider Groups, do not belong to the group of financial institutions classed as “traditional lenders”. They are a geographically diverse group, are highly sophisticated financiers and investors, and can be found trading and investing throughout the world in the global financial markets. The Providers are easily recognisable as companies with access to a large asset base and tend to be Sovereign Wealth Funds, Private Equity Funds, Hedge Funds, Larger Family Offices, and cash rich institutions.

Provider Groups utilise part of their asset base as security to issue Bank Guarantees, for the purposes of leasing, otherwise correctly known as Collateral Transfer. A company who wishes to lease a Bank Guarantee, would first have to locate a Provider and enter into a Collateral Transfer Agreement.

A Collateral Transfer Agreement is a contract between two companies, the provider and the company wishing to lease a Bank Guarantee, (referred to as the Beneficiary), where the provider transfers the Bank Guarantee to the Beneficiary for an agreed period of time, usually one year. Under the Terms and Conditions of the Collateral Transfer Agreement, the Beneficiary must pay the Provider a fee for utilising the Bank Guarantee, referred to as the Collateral Transfer Fee.

As referred to above, Provider Groups have access to a vast array of assets, of which some are returning a relatively low rate of interest such as Medium and Long-Term Notes, (MTN’s and LTN’s). Providers will use these assets as collateral to issue Bank Guarantees into the Collateral Transfer market, where their return on investment will be considerably higher.

IntaCapital Swiss, a Geneva based boutique finance company, have a unique data-base of Providers and Provider Groups, and together with their popular Collateral Transfer Facility, are providing access to loans and lines of credit, also alluded to as Credit Guarantee Facilities, to those companies being denied credit facilities by banks and other financial institutions.