Mercantile Credit fulfils its investment commitments by taking a direct equity position with their investment partners. However, in cases where our investment committee rule out direct equity participation, we are able to offer partners a secured lending platform, where subject to the same rigorous due diligence, the client can obtain finance without diluting too much equity.
Through our international network of regulated intermediaries, Mercantile Credit is able facilitate auxiliary and third-party lending for selected partners, allowing them to open up numerous finance facilities with their own lenders, which includes leasing, trade finance and merchant accounts.
This specific finance is referred to as Collateral Transfer, (commonly but incorrectly referred to as Leased Bank Guarantee), where a company finding it difficult to access investment or credit facilities can borrow or effectively rent a Bank Guarantee from another company, commonly referred to as a Provider. A Bank Guarantee can be borrowed or leased from 1 to 7 years on average, and the company leasing the Bank Guarantee, alluded to as the Beneficiary will be able to access credit facilities utilising the Bank Guarantee as security.