UBS fixed advance

For capital spending and working capital

The UBS fixed advance can be used to finance capital spending and working capital. The principal, the term and the rate of interest are fixed contractually in advance for the entire duration of the advance. The maximum term is 1 year.

The key advantages:

Given the short maturity, the fixed advance can be adapted to any credit requirement.
Short-term interest-rate commitment – advantageous if interest rates are falling.
Fixed interest during the agreed term.
Interest is charged net, i.e. without credit commission.

Terms & conditions at a glance:

The rate of interest is based on money market rates in London (LIBOR) plus a margin.
The margin is set individually and depends on the client’s creditworthiness.
Reduced interest is charged if the client provides readily realizable collateral, for example in the form of securities.
The rate of interest is fixed two value days before payment.

Detailed information:

Usable currencies: Swiss francs and all common foreign currencies.
Minimum amount: CHF 250,000 or equivalent in foreign currency.
Maturity/term: 1-12 months – the most common terms are 3 and 6 months.
Termination: extraordinary partial or full repayments, early terminations, etc. are possible at any time against payment of the contractually agreed early repayment indemnity plus processing costs.
Statements of account: on maturity for fixed advances with terms of up to and including 6 months or quarterly at the end of each quarter (March, June, September and December) for fixed advances with terms of more than 6 months.
Interest accrual: charged directly to the account.
Disbursement: after all loan files have been put together as per the contractual agreement. N.B.: The rate of interest is fixed two value days before payment.
Repayment: typically, it is agreed that partial or full repayments are to be made on final maturity of the UBS fixed advance.
Limitations: no means of hedging against rising interest rates, as with a UBS rollover credit.