What It Is:
This particular Cash Management solution allows you to invest the required deposit (as applied on asset finance transactions by most banks) at competitive rates via our Corporate Cash Management offering. In this way we provide you with access to the deposit mid-term into the duration of the asset finance transaction.
- We consume 100% of your credit risk under the asset finance transaction.
- Set-off is to be applied in the event of defaulting under the asset finance transaction.
Business Value Add
- Create and enhance balance sheet substance for your business by way of capitalising the investment in the new asset as well as the investment in the deposit.
- Create liquidity by way of reimbursement of the deposit invested mid-term into the duration of the asset finance transaction.
- Overall enhanced cash and debt management by off-setting interest earned to interest expenditure of the debt, resulting in overall lower cost of funds and pricing of debt facilities.