The minimum guarantee fee is derived from the guarantor’s perspective. The fee should at least equal the cost of the guarantee, i.e. the expected credit loss.
The expected credit loss is automatically calculated as a percentage of the nominal amount of the guarantee.
The maximum guarantee fee is derived from the perspective of the guaranteed party. The fee should not exceed the difference in funding cost.
The funding costs with and without the guarantee are calculated automatically without any additional user input as it leverages our tooling for intercompany loans in the background.
Finalize a calculation by generation an extensive transfer pricing report with a single click. It can be generated in DOCX or PDF.
This report outlines the methodology as well as the calculation-specific data.
