What are the Benefits to a Company for Raising Lines of Credit?

There are many benefits from obtaining a credit line from a bank or other lending institutions. But before we embark down this road there is one question, can you gain access to a credit line? Yes, all companies can approach their banks or other lending institutions, however sometimes banks may refuse credit line and loan applications. This is where this blog post will come in useful. Here we breakdown how it is possible for business to gain access to credit lines – especially during the global pandemic and on a more specific note, Brexit.  

Utilising Demand Bank Guarantees will enable you to access credit lines with all the attendant benefits. If this is a new concept to you then please keep reading or get in touch with us to ask questions tailored to your business or situation.  

Demand Bank Guarantees 

A Demand Bank Guarantee is a financial instrument issued by banks on behalf of their clients. This is the only guarantee that can be monetised and used for lines of credit. It is governed by ICC Uniform Rules for Demand Guarantees, (URDG 758) and the format consists of precise wording used exclusively for monetisation purposes. The beneficiary of a Demand Bank Guarantee can use the instrument as security to obtain a line of credit. 

Where Can I Find a Demand Bank Guarantee? 

There are companies that specialise in obtaining Demand Bank Guarantees. One such company that has made a name for itself in this market is IntaCapital Swiss. They have been providing companies with Demand Bank Guarantees for over a decade.  

IntaCapital Swiss have an amazing database of companies that lease Demand Bank Guarantees, which are made available to companies in need of credit lines. This is made possible through their highly popular financial product, the Collateral Transfer Facility, whereby IntaCapital Swiss can facilitate if your bank refuses to lend.  

The Benefits of Credit Lines 

If the pandemic has impacted your business negatively or if Brexit has proved problematic financially, a credit line will bring you instant cash flow.  

This could help resurrect your business and see-out the lockdown. Urgent bills can be paid, resulting in reducing stress levels. 

There are other benefits from obtaining a credit line from a Demand Bank Guarantee. This instrument can be renewed year on year up to seven years.   

If you are suffering due to financial problems then you have the opportunity to relieve this suffering. The access to credit lines is real. Please look at the above web sites. It will cost you nothing.