Express Guarantee by Uralsib Now Available on WBC Platform for Customers
In the Russian guarantee market, UralSib Bank stands out as one of the leading players, particularly in the realm of state procurement. The insights from the Ministry of Finance of Russia's 2024 report underscore UralSib's significant role.
A Rapid, Streamlined Solution for Bid Bonds
UralSib Bank's express guarantee is a quick and efficient solution for companies seeking to participate in government tenders and procurement processes. This financial product, issued on VTB's financial marketplace, offers a fast-track approach, often taking a day or two to be issued, which is crucial for companies facing tight tender deadlines.
Targeting Small and Medium Enterprises
The express guarantee is primarily designed for small and medium enterprises (SMEs) or new market players who may not have extensive collateral or the time to secure traditional guarantees. The product's simplicity and speed make it an attractive option for these businesses.
Simplified Application Process
The application process for the express guarantee is streamlined to reduce document requirements. UralSib Bank swiftly evaluates the applicant's creditworthiness and tender documentation, ensuring a quick turnaround.
Guarantee Limits and Terms
The size of the guarantee usually corresponds to the tender's required bid bond (often 1–5% of the contract value). The term aligns with the tender duration and contract signing period.
Cost and Fees
Fees are charged as a percentage of the guarantee amount, competitive with market standards but designed to be affordable for quick entrants to procurement.
Practical Application
- A company applies to UralSib Bank with tender documents.
- The bank evaluates the applicant quickly and issues the bid bond guarantee.
- This guarantee is submitted as part of the tender to the procurement authority.
- If the company wins and complies with the contract, the guarantee expires without payout.
- If the company fails obligations, the bank may have to pay the tender customer and then recoup from the company.
Impact on the Russian Guarantee Market
- Provides liquidity and access: Helps businesses without large collateral or established credit lines participate in state procurement.
- Supports government initiatives: Facilitates more competition and SME participation in government contracts.
- Fills a niche: Many traditional banks have slow processes or require more extensive collateral; UralSib’s express guarantee meets demand for speed and simplicity.
- Risk Management: The bank carefully assesses risks but accepts some higher risks to enable market players’ participation.
UralSib's Leading Position
UralSib Bank leads in the number of guarantees issued for tender participation, accounting for 27% of such guarantees. Additionally, the bank leads in the number of guarantees issued under 44-FZ, accounting for 18% of all guarantees.
For further details on procedures, documents required, or comparative market analysis, please contact UralSib's business services at phone number 8-800-700-77-16, "UralSib Business Online" chat, or visit the bank's offices.
- With UralSib Bank's express guarantee, companies in the Russian business sector, including smaller or new entrants in the industry, can efficiently participate in government tenders and procurement processes by submitting a fast-track bid bond, issued on the VTB's financial marketplace.
- By providing a simplified application process, low-cost fees, and rapid issuance of guarantees that cater to tender deadlines, UralSib Bank strengthens the Russian guarantee market, offering businesses in need of liquidity and access, and supporting government initiatives aimed at promoting competition and SME participation in state procurement.
