IntaCapital Swiss, are among Europe’s leading boutique finance houses, supplying access to lines of credit and bank loans, referred to as Credit Guarantee Facilities, utilising Collateral Transfer and Collateral Transfer Agreement’s. A Collateral Transfer Agreement is where one company, referred to as the Provider, leases or rents a Bank Guarantee, to another company, referred to as the Beneficiary.

A Collateral Transfer Agreement is usually agreed by the Provider and the Beneficiary for one year, though a Bank Guarantee, can be booked for up to and including seven years. In the event that a Bank Guarantee is booked for in excess of one year, the Collateral Transfer Agreement is automatically renewed provided all the Terms and Conditions are adhered to as contained within the agreement.

If the Bank Guarantee is leased for one year and the Beneficiary decides that they wish to renew the Collateral Transfer Agreement for a second year, then they must advise IntaCapital Swiss at least one month before expiry, so they may contact the Provider and the Lender, to obtain their agreement.

The costs contained in a Collateral Transfer Agreement, are as follows, and they are for the Beneficiary’s account. Cost of borrowing for one year, the Provider’s fees, arrangement fees, due diligence fees, booking and legal fees. If the Collateral Transfer Agreement is renewed for a second and subsequent years, the fees for the account of the Beneficiary, are costs of borrowing for one year and the Provider’s fees.

The Provider’s fees on balance, are fairly stable year on year. However, the cost of borrowing for one year may vary, due to the vagaries of the money markets. Therefore, if 12-month Euribor or 12-month Libor has increased when the Collateral Transfer Agreement is renewed, the costs are for the account of the Beneficiary.