The majority of our clients who enter into Collateral Transfer facilities to receive a Bank Guarantee have the ultimate intention of raising credit against it. We recognise this fact, which is why we further explain how a credit line can be utilised.
Most recipients, once they have received the Guarantee to their bank account, are accommodated by their own bankers granting them credit using the Guarantee on their account. However, a small percentage of clients are declined credit facilities by their own bank for a myriad of reasons. Mainly that they have not been trading for a significant amount of time.
However, you will be assured to know that IntaCapital can also arrange a credit line against the Guarantee in the event that the recipient bank declines the application.
The bulk of our clients who request the Collateral Transfer Facility, will receive on their bank account a Bank Guarantee, which is usually used to raise a credit line against said Bank Guarantee.
Most beneficiaries of the Bank Guarantee have already pre-agreed with their bankers a line of credit upon receipt of the Bank Guarantee in their account. There are on a few occasions – usually bank internal compliance, where the beneficiaries bankers refuse a line of credit.
On such occasions IntaCapital Swiss have the ability to arrange a line of credit in the absence of the client’s bankers granting a line of credit to their customer.