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IntaCapital: What is a Bank Guarantee, and the difference between Standby Letters of Credit (SLBCs) and documentary credits (L/Cs)

Posted on by IntaCapital Swiss

In international trade dealings, buyers and sellers often experience problems of trust within each other to honour their payment obligations. A seller may find it difficult to ascertain the buyer’s willingness and ability to make payment, whilst the buyer may not be convinced that the seller genuinely intends to perform his side of the agreement […]

IntaCapital: Credit lines against Bank Guarantees; common misunderstandings in ‘lease or leasing’

Posted on by IntaCapital Swiss

Whilst we experience a major up-turn in the popularity of using so-called ‘leased’ bank guarantees to secure credit lines, commercial loans and project finance, many borrowers and principals do not fully understand the concepts. Firstly, there is no such thing as ‘lease’ or ‘leasing’ of bank guarantees. The correct term is Collateral Transfer. Where the […]

IntaCapital: International firms turn to Collateral Transfer to raise Project Finance

Posted on by IntaCapital Swiss

(‘Leasing’ Bank Guarantees) At this time of economic hardship and uncertainty, international companies are turning to sophisticated investors to raise adequate collateral through collateral transfer arrangements (‘lease of bank guarantees’) and securities lending to raise their much needed project capital. It is common knowledge that lending banks, private equity investors and private lenders have all […]