Questions on Procedures & Timescales

Questions on Procedures & Timescales

Frequently Asked Questions

Procedures & Time Schedules for

Collateral Transfer Facilities

I will be pleased to provide you answers on some of the most common questions asked by our potential clients concerning the procedures involved with receiving a Bank Guarantee under Collateral Transfer facilities and the timescales involved.

Q: What are the procedures for obtaining a Bank Guarantee under Collateral Transfer?

A: Procedures are remarkably simple. Although they vary slightly from one Provider to the next, they are in general pretty similar. We have outlined the procedures in full detail to give our potential clients all the information they need. See the full procedures.

Q: Can I raise credit lines against the Bank Guarantee received?

A: Yes. This is generally a question for your own bank, however IntaCapital can help you obtain credit once the Guarantee is received. See more information on credit lines.

Q: What are the requirements for applying?

A: The requirements do of course vary between Providers. IntaCapital will locate a suitable Provider to offer the best and most competitive facility that meets your needs. However, you would be expected to be trading solvently or if the applicant company is a new start, the company does not hold existing debt. We regret that we cannot take applications from US based companies or US citizens. We cannot issue collateral or facilities denominated in US Dollars (US$), only Euro (€), GBP (£) and Swiss Francs (CHF). The minimum amount is €/£/CHF 10 million.

Q: How long will it take to complete a deal and receive the Bank Guarantee?

A: Again, this varies from deal to deal. We do advise all our clients to allow a period of between 8 and 12 weeks from initial application. However, if we receive full co-operation and the flow of required information is smooth, it may be possible to complete the entire transaction from start to finish inside 30 days. Time is of course required for the Provider to lodge the necessary assets to the issuing bank of the guarantee, so we advise our clients that a minimum time of at least 21 days will apply in any event.

Q: How quickly can I know if I am accepted?

A: Generally, we can inform you within 48 hours of receipt of the initial application of your acceptance. Using IntaCapital assures you have the best chance of being accepted by our selective panel of Providers and Private Equity companies. See more information.

Q: What is the underwriting criteria to qualify?

A: These are also simple and straight-forward. Since the facility involves ‘importing’ a Guarantee on effectively a ‘lease’ platform, underwriting is quick and simple. The applicant will need to demonstrate that they intend to use the Guarantee for bona fide commercial purposes. This is usually done by standard due diligence and AML verification by our compliance team. They will also be required to confirm that they will release any encumbrance over the Guarantee 5 days prior to its expiry to allow the Guarantee to lapse without call or recourse to the Provider. Most of this information is obtained through due diligence verifications and will be based on the information provided by the applicant.

Q: My question is not displayed above.

A: We will be pleased to answer any questions you have. Either contact us by telephone or use our contact form.

 

 

Other links you may find of interest:

Back to FAQ’s

More information on Procedures & Requirements