Providers can be classified into two groups, those who are asset rich such as Hedge Funds, Sovereign Wealth Funds, Private Equity Funds and Larger Family Offices, and those institutions that carry large cash balances with their bank. Both groups provide Bank Guarantees, for Collateral Transfer, which is the correct designation for a Leased Bank Guarantee.

Any company wishing to utilise a Leased Bank Guarantee, must first enter into a contract with a Provider. The contract is referred to as the Collateral Transfer Agreement, and under the Terms and Conditions of the contract the company leasing the Bank Guarantee is deemed to be the Beneficiary.

Once the Collateral Transfer Agreement has been signed by both the Provider and the Beneficiary, the Provider is free to transfer a Bank Guarantee to the Beneficiary for a limited period of time, usually one year. The Provider will receive payment from the Beneficiary for effectively renting the Bank Guarantee, and this payment is referred to as the Collateral Transfer Fee.

In order for Providers to furnish Bank Guarantees for Collateral Transfer, they will first have to securitise he usual under-performing assets or securities with minimal coupons, such as Medium-Term Notes, (this does not apply to the cash rich provider groups). The return the Provider will receive from Collateral Transfer, will greatly enhance the overall return from the underperforming assets or securities.

For years IntaCapital Swiss, utilising Bank Guarantees furnished by Provider Groups, and through their ground-breaking product the Collateral Transfer Facility, continue to make available lines of credit or loans, also referred to as Credit Guarantee Facilities, to companies in desperate need to enhance their cash flow.