Capital Banker

In 2007, CapitalBanker.com expanded its reach and is now providing commercial financing services to thousands of small and middle-market businesses in all 50 US States and Canada.

Business owners and managers

Business owners and managers in North America are increasingly hiring, CapitalBanker.com, as their preferred "one-stop commercial financing shop

CAPITAL BANKER

Charles Onuosa
Chief Strategist
CapitalBanker.com, Inc.
Vancouver/ Chicago/ New York
20700 Civic Center Drive, Suite 170
Southfield, Michigan 48076
Office: (800) 915-7630
Fax: (800) 878-9915

Interest-rate Management

Navigating the complex world of interest rate management is time consuming for business owners and their financial managers. Deploying Capital Banker’s interest rate management expertise and technology, to manage and execute your interest-rate swaps, will save your financial managers, their most valuable resource—time.

Interest rate swaps are simply the exchange of one set of cash flows (based on interest rate specifications) for another. Because they trade OTC, they are really just contracts set up between two or more parties, and thus can be customized in any number of ways.

For example, let's say Main Street Company (MSC) is seeking to loan funds at a fixed interest rate, but Johns Builders Supply Inc. (JBSI) has access to marginally cheaper fixed-rate funds. Johns Builders Supply, Inc. can issue debt to investors at its low fixed rate and then trade the fixed-rate cash flow obligations to MSC for floating-rate obligations issued by JBSI. Even though JBSI may have a higher floating rate than MSC, by swapping the interest structures they are best able to obtain inexpensively, the combined costs are decreased - a benefit that can be shared by both parties.

-or-

Suppose a U.S.-based company needs to acquire British pounds and a U.K.-based company needs to acquire U.S. dollars. These two companies could arrange to swap currencies by establishing an interest rate, an agreed upon amount and a common maturity date for the exchange. Currency swap maturities are negotiable for at least 10 years, making them a very flexible method of foreign exchange.