#collateraltransfer

A Leasing Bank Guarantee refers to a financial arrangement where a bank guarantee is temporarily transferred for a specific period in exchange for a fee, much like leasing an asset.

Although the technical term is “Collateral Transfer,” the word “leasing” became popular because the structure resembles a commercial lease agreement in finance and trade transactions. Businesses use Leasing Bank Guarantees to secure funding, enhance credit lines, and support international trade operations with lower upfront capital requirements.