The 2023 Collateral Crisis
Once again, the global landscape is fraught with crises affecting the economy and geopolitics. The ongoing Russian invasion of Ukraine, supported by China and to some extent India, has led to widespread repercussions. Many Western nations are grappling with an energy crisis, soaring interest rates, credit c
Collateral Transfer in Aviation
For more than a decade, we have been assisting companies facing challenges in securing loans and lines of credit through conventional channels, offering them access to capital. Our expert management team at Redeure possesses a unique understanding of global markets, and our highly sought-after financial pro
Construction Funding via Collateral Transfer
At Redeure we facilitate funding for various construction projects globally, covering expenses like material purchase, equipment acquisition, land procurement, and general construction costs. Our proficient finance team provides immediate working capital for new projects, subject to passing our due diligenc
Leasing ‘Bank Gurantees’
The explanation below pertains to the practice commonly referred to as “leasing” Bank Guarantees. However, it’s important to note that the technically accurate term for this process is Collateral Transfer. Financial experts posit that the term “leased” might have been borrowed
Types of Collateral in a Collateral Transfer Agreement
Collateral Transfer involves the movement of a financial instrument from one company to another, where the lessee or beneficiary effectively “leases” the instrument, typically for one year. The entity leasing the instrument is commonly known as the Bank Guarantee Provider or SBLC Provider. A con
Difference Between Collateral Transfer and Collateralized Bank Loan
When a bank extends a loan based on the provision of security or collateral, it is termed a Collateral bank loan. Such loans fall into two distinct categories: private/personal loans and corporate loans, each representing markedly different forms of collateral financing. Collateral bank loans, facilitated t
Collateral Transfer Mediums
The term “Collateral Transfer Medium” typically refers to the method or platform through which the collateral transfer process is facilitated. In financial contexts, especially involving Collateral Transfer Agreements, the medium could involve various mechanisms for transferring, securing, or ut
Reason for annually establishing fixed terms for Collateral Transfer
Collateral Transfer facilities are commonly offered with terms ranging from 12 to 72 months, typically structured as renewable 12-month contracts. The annual nature of these terms is often tied to the providers’ contracts with their investors, which operate on an annual basis, yielding annual returns.
Reason behind naming it a ‘Leasing’ Bank Guarantee or Standby Letter of Credit?
The term ‘leasing’ in the context of Bank Guarantees and Collateral Transfer is a misnomer and should be avoided. The common phrases “Leasing Bank Guarantees” or “Leasing Standby Letters of Credit” are often associated with Collateral Transfer. However, using the term 
