FAQs
Here you can read frequently asked questions for guidance or submit a question of your own. Please select a topic and view the frequently asked questions for that topic.
What are the procedures for obtaining Collateral Transfer facilities?
Procedures are remarkably simple. Although they vary slightly from one Provider to the next, they are in general pretty similar. We have outlined the procedures in full detail to give our potential clients all the information they need. See the full procedures.
Can I raise credit lines against the Bank Gurantee received?
Yes. This is generally a question for your own bank, however Redeure can help you obtain credit once the Guarantee is received. See more information on credit lines.
What are the requirements for applying?
The requirements do of course vary between Providers. Redeure will locate a suitable Provider to offer the best and most competitive facility that meets your needs. However, you would be expected to be trading solvently or if the applicant company is a new start, the company does not hold existing debt. We regret that we cannot take applications from US based companies or US citizens. We cannot issue collateral or facilities denominated in US Dollars (US$), only Euro (€), GBP (£) and Swiss Francs (CHF). The minimum amount is €/£/CHF 2 million.
How long will it take to receive the Bank Gurantee?
The duration depends on individual deals. While we recommend allowing 8 to 12 weeks from the initial application, with full cooperation and smooth information flow, the entire transaction might conclude within 30 days. A minimum of 21 days is necessary for the Provider to lodge assets with the issuing bank.
How quickly can I know if I am accepted?
Typically, we can notify you of your acceptance within 48 hours of receiving the initial application. Opting for Redeure increases your likelihood of acceptance by our discerning panel of Providers and Private Equity companies.
What is the underwriting criteria to quality?
These processes are straightforward. As the facility essentially involves 'importing' a Guarantee on a 'lease' platform, underwriting is swift and uncomplicated. The applicant must demonstrate the genuine commercial intent of using the Guarantee, verified through standard due diligence and AML checks by our compliance team. Additionally, the applicant commits to releasing any encumbrance over the Guarantee five days before its expiry, ensuring a smooth lapse without recourse to the Provider. This information is primarily gathered through due diligence verifications based on the applicant's provided details.
Are there any hidden or unexpected costs or charges?
No, there are no hidden costs. The Term Sheet contract provides a transparent breakdown of all costs, fees, and charges. If, at any point after receiving the Term Sheet, you choose not to proceed, you can do so without incurring any financial commitment, cost, or charge. All details, costs, charges, and procedures are declared before any financial commitment is required.
Once I receive a term sheet, am I secured the facility?
Yes. If you decide to accept the Terms, the facility is secured in accordance with the terms and conditions of the Term Sheet.
Is there a security deposit?
In certain instances, particularly for non-listed or private entities with limited trading history, or individual applicants, a Provider may request a refundable deposit against the Contract Fee. This deposit is credited towards the Contract Fee upon completion.
Can I choose to pay any deposits into an escrow account?
Yes of course. Most Providers will be happy to arrange an escrow facility for deposits.
Do I need to pay legal charges or bank charges of the provier?
No, the Providers generally cover all legal fees related to the issuance of collateral and documentation, including the bank charges for the Guarantee issuance. All associated costs and charges are encompassed within the Contract Fee and explicitly outlined in the Term Sheet.
