Bank guarantees have become a key tool for Ukrainian companies that want to work with public procurement, large corporate customers or foreign partners but do not want to freeze working capital on deposits. Sense Bank has announced an updated procedure for issuing guarantees, which simplifies access for entrepreneurs and small and medium sized businesses.
Up to UAH 7.5 million without collateral or personal surety
Under the new approach, business clients can receive bank guarantees for amounts up to UAH 7.5 million without pledging hard collateral or providing the owner’s personal surety. The decision is based on an assessment of the company’s financial state, cash flows and contract history, rather than on available real estate or equipment. This is particularly important for fast growing SMEs that have orders but do not yet own substantial assets.
What types of guarantees can companies obtain?
Sense Bank offers a line of products that cover typical needs of Ukrainian business:
- tender guarantees for participation in public procurement and large private tenders;
- performance guarantees securing proper fulfilment of contracts;
- payment and advance refund guarantees for supply, construction and service agreements.
Guarantees can be issued for terms up to one year, in hryvnia, and are suitable both for contracts with state customers and with private partners. A significant part of the process is digitalised: the client can submit an application online, upload documents in electronic form and receive the guarantee text for further transfer to the customer.
Benefits for SMEs and investors
The simplified model reduces the time from application to issuing a guarantee and lowers transaction costs. For SMEs this means easier access to public procurement and large B2B contracts: instead of blocking cash on a deposit, they can use a bank guarantee and keep liquidity for operations. For investors and lenders, the spread of guarantees supported by sound risk assessment and, where applicable, state risk sharing programmes increases transparency of the market and reduces default risks.
Part of a wider risk sharing infrastructure
Ukraine is gradually building an ecosystem of guarantee and insurance instruments to support business during war and reconstruction. Simplified bank guarantees complement state programmes that compensate part of loan risks, export credit tools and war risk insurance initiatives. For foreign partners, this is a sign that Ukrainian banks are ready to structure deals on international standards, making it easier to finance projects, equipment supplies and reconstruction contracts.
