In our previous post we looked at some of the basics of credit and financing solutions offered through an offshore bank. In this post we will take a more detailed look at particular requirement / need scenarios and how an offshore banking provider can help you with an appropriate financing solution:
Expanding your investment portfolio
You own a large position in a single stock; or, you hold a substantial number of units within a specific asset category or a highly concentrated stock portfolio. You wish to expand / diversify your current portfolio. Your offshore bank can help you with a leverage loan, a credit facility that leverages your current portfolio holding as collateral, at attractive and flexible terms.
You can use this financing to invest in new securities and asset classes. This can be a cost-effective way of acting on your market views, allows you to grow your net worth and helps you to reduce risk in your portfolio.
Expanding your business
You may:
▪ Be looking to expand your current business holdings
▪ Want to purchase/acquire another business
▪ Be exploring options to finance imports / exports for your business
▪ Want to invest in machinery, equipment or make other capital improvements to your existing business
▪ Want to decrease the borrowing costs of your business with interest rates that may be lower than those available in the country where your business is located
Your offshore banking provider can help you with letters of credit or guarantee if you wish to borrow elsewhere at favourable terms or a line of credit (secured by your assets or investments) to help you finance your business expansion plans.
Home buying
You may wish to buy or build a home or a vacation home in your home country or another country. Financing such a home acquisition may need to consider such factors as your estate / tax planning needs, the number of countries across which you own assets etc.
The credit specialists at your offshore bank can work with your tax advisory team and help you with a mortgage finance solution for your new home, refinance your existing mortgage and access the equity that's accrued to your current home or advise you to buy the home for your child, grandchild or parents.
Luxury Assets
A vintage car, a yacht, bloodstock or works of art – you may have had your eye on this for some time or you may wish to celebrate / mark a major milestone, your offshore bank can help you finance such purchases through lines of credit or collateralized credit.
Your offshore bank can not only help you with flexible and multi-currency financing solutions for your specific needs it can also help you identify the right financing solution given your risk profile, investment goals and tax considerations.
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