Here is how you can access Credit Enhancement

Financial Solutions  > Collateral Support (CS), Credit Enhancement and Guarantees >  Here is how you can access Credit Enhancement

Credit Enhancement and what is available in your situation?

Here you will learn about terms and concepts and available working procedures to enhance your credit and to access funds.

If you have a well established company, you are a long terms client of a bank, and have sufficient cash in the bank or investment, then Credit Enhancement can leverage profits. Your own bank will gladly help you with relevant structures, instruments and concepts.

Some measures of credit enhancement only require just a closer look at your balance sheet to improve and optimize the overall financial picture of your company. It is just working on your balance sheet. This can lead to a better equity ratio, improve your rating and with this access to funds. There are some simple steps you can take to leverage your finances and profits. Anybody can have that regardless of the size of your company. All you need is a well versed accountant or financial consultant.

If your company is not within either of the above described scenarios and in such a fortunate and financially well backed situation, then things look completely different. You still will have to have a good banking relation. And, you will have to have funds to pay for Credit Enhancement. For what is available at no, or lowest costs to cash rich enterprises, you will have to pay for in cash, also mostly in advance. But this can be well worth your while. Credit Enhancement enables additional transactions and projects you cannot conduct or build without credit support and additional liquidity.

If you do not have relevant wealth, but a good banking relation, then you can borrow securities and cash backed financial instruments to be used as collateral, primarily at your own bank. Your bank pays for the lending fees once the collateral instrument arrives at your bank and you do not have to pay anything in advance if your annual revenues are in line with the value of the instrument that you seek. If you also cannot prove relevant revenues, you can probably compensate this by placing a refundable retainer.

If you are not supported by your own bank to enhance your credit, you can only expect and access Credit Enhancement provided by lower rated banks and financial institutions. These are so called “willing banks” support transactions your own bank would not be prepared to serve. In that case, you would appoint a professional (mandate) who has built up personal relations with such banks over years, and place a retainer to structure your credit Enhancement transaction in a professional way to avoid financial and legal problems at a later stage. Once the transaction is ready to go, you will have to be prepared to pay for the service before (in case of a bank instrument), the guarantee is actually sent to your receiving bank, or supplier.

If you would like to discuss any of these options for your immediate business, please use the reply form, or call 00353.86.0325153. This number also works on Whatsapp, Signal, Telegram and WeChat.

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