Whilst Providers and Provider Groups are “Heavy Hitters” in most financial markets throughout the world, they also lease Bank Guarantees, the proper term being Collateral Transfer. These companies, whilst not centred geographically, are all remarkably similar, all sophisticated investors and are globally known as Hedge Funds, Sovereign Wealth Funds, Private Equity Funds and Larger Family Offices.

There are only a few Providers and Provider Groups supplying Bank Guarantees, however the size of their balance sheets and their access to assets, provides a concrete base to enter into a substantial amount of contracts with other companies wishing to lease a Bank Guarantee. This contract is collectively known as a Collateral Transfer Agreement.

A Collateral Transfer Agreement, is a contract between a company seeking to lease a Bank Guarantee, (the Beneficiary), and the Provider, where the Provider transfers a Bank Guarantee to the Beneficiary for a limited period of time. The Provider receives a payment from the Beneficiary for use of the Bank Guarantee alluded to as the Collateral Transfer Fee.

Provider Groups are able to provide Bank Guarantees by utilising their huge asset base –  there are always underperforming assets, such as Long-Term notes, where often the return is minimal. These assets are securitised in order to supply Bank Guarantees for Collateral Transfer, thus transforming underperforming assets into assets providing an increased return.

For companies seeking Bank Guarantees to utilise as security for lines of credit, also alluded to as Credit Guarantee Facilities, they should contact IntaCapital Swiss, who, with their sizeable database of Provider Groups and in conjunction with their highly popular Collateral Transfer Facility, are daily, providing companies access to loans and lines of credit