What is a Line of Credit?

A question that often arises is, what is a credit line loan? Most assume it’s a straightforward bank loan – however, this isn’t the case.  It is in fact a loan against an asset. The asset could be a property or precious metals such as gold or silver or other assets, which include precious stones such as diamonds or emeralds. 

Whether your company has access to assets listed above or not, access to credit could be available for your business. If your business falls under the latter, a financial instrument or bank guarantee could act as an asset to attain a credit line. These have been a lifeline for some companies, who were starved of credit lines by their banks – especially during the global Covid-19 pandemic.  

Credit Lining a Bank Guarantee  

A Bank Guarantee is a simple way to obtain a line of credit. The beneficiary of a Bank Guarantee can use this instrument as collateral, as many lenders will issue a line of credit against a Bank Guarantee. However, there is something to be aware of, the Bank Guarantee must be a Demand Bank Guarantee. This gives the lender a 100% security. 

For more information on Demand Bank Guarantees and how to obtain lines of credit please get in touch or visit our information summary.  

Accessing a Line of Credit 

You may already know how to apply for a credit line loan, but not against a Bank Guarantee. So, where should you go to access a line of credit against a Bank Guarantee? There are several companies who facilitate such instrument, who are also experts within this field. 

IntaCapital Swiss, have been providing Bank Guarantees for lines of credit for a decade. Based in the heart of the financial sector in Geneva, they are responsible for facilitating financial instruments for many companies. They provide access to providers of bank guarantees and the legal framework to obtain a Bank Guarantee. If your own bank won’t lend, they also provide lenders.  

Brexit and Exporting Companies 

The Covid-19 pandemic has changed the financial world. Throw in Brexit and many companies are enduring severe cash flow problems. Companies exporting to Europe have indeed been hit very hard. Increased costs and red tape bringing particular hardship. 

Are you an exporting company struggling under these new conditions? Have you investigated getting a line of credit against a bank guarantee? Then now’s the time. A credit line loan against a Bank Guarantee can gain the credit your business may need. Your company will be able to explore a world of different options. Now is the time to access credit using Bank Guarantees. Contact us for more information, or go direct to IntaCapital Swiss.