Fusion Guarantees (Pty) Ltd products are structured as a secured loan transaction. The client would first setup a secured credit facility. The client will apply for a specific credit facility limit and securities would be offered by the client. Fusion Guarantees (Pty) Ltd would assess the application. Once approved, the cost of the facility would be quoted as well as the security requirements. The quote will be valid for 30 days. (Download facility application here).

The client will then enter into a credit agreement whereby the client would nominate the beneficiary to whom an amount must be discharged. The amount to be discharged would be the principal debt and fees would be charged on the deferred debt. Fusion Guarantees (Pty) Ltd consider the nature of the guarantees to be issued in favour of beneficiaries to be similar to “letters of credit”. The letter of credit or guarantee is an indication that the client is good for a certain amount and an amount would be discharged on specific contractual conditions. We consider the guarantee a “letter of credit” as the discharge of any amount must be repaid by the client to the guarantor similar to a secured bank overdraft. Once an amount is discharged from the overdraft the amount becomes payable by the client. The principal debt also attracts interest.

Product offering within credit facilities include: