BUSINESS LENDING AND PREFERENTIAL LOANS IN UKRAINE FROM UBC

Business financing: bank lending and alternative instruments

The earlier page treated raising funds not as a search for one ‘cheap loan’ but as selection of an instrument for the enterprise's specific need. Financing equipment, acquiring a production facility, replenishing working capital or implementing an investment project requires different terms, security and payment structures.

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Preparing a credit application

The document package for a bank depends on the type of credit, sector, term, currency, security and the institution's internal requirements. Formal submission of financial statements without an explanation of the business model often fails to show the credit committee from which cash flows the debt will be repaid.

Preparation usually covers:

analysis of financial statements, tax returns and cash flows;
explanation of the financing purpose and schedule for use of funds;
feasibility study or business plan;
forecast of income, expenses, working capital and debt burden;
documents regarding collateral, guarantors and ownership structure;
corporate resolutions on obtaining the loan and providing security.

Feasibility study and business plan

The historical material distinguished a short feasibility study for relatively simple short-term financing from a full business plan for an investment project. The document should show not only the desired loan amount but also realistic sales, margin, seasonality, liquidity headroom and a repayment scenario if performance deviates from the plan.

Not only a conventional loan

A financing need could be met through bank guarantees, documentary operations, bill-of-exchange instruments, contract or receivables financing, a bond loan or syndicated credit. The choice depends on whether cash is required on the balance sheet or whether a performance guarantee, deferred payment or an instrument for sharing risk among several lenders is sufficient.

The interest rates and ‘preferential programmes’ mentioned in the old advertisement are historical offers and in 2026 are determined after review of the specific project.

Capital market and issue of securities

The authors considered issuing shares or bonds as an alternative to bank lending. Such a transaction requires prior legal and financial diagnostics: determining the issue amount, investor rights, security, interest model, placement procedure and servicing costs.

An additional issue may also be used in a corporate transaction where funds are contributed to the enterprise's capital rather than paid to the existing owner. In that case, valuation of the interest, anti-dilution protection and proper corporate resolutions are particularly important.

Investment analysis and M&A

A separate area of the historical offer concerned identifying acquisition targets, valuing an enterprise, negotiating with owners and organising transfer of control. Due diligence should cover debts, litigation, taxes, licences, land, principal assets, related persons and management authority.

After the transaction, a plan is required for transferring bank access, contracts, the accounting database, seals, electronic-signature keys and management information. Without such a plan, even a legally completed acquisition may fail to give the buyer actual control.

Result of financial consulting

High-quality support should end not with a presentation but with a comparative model of several options: cost of capital, terms, security, tax consequences, risk of early enforcement and impact on company management. The final lending decision is made by the bank, while the investment decision is made by the investor or authorised corporate body.

Why is it better with UBC?

We provide our clients with a full range of consulting, financial and investment services for effective business development, attracting investment into new projects, arranging financing and selling businesses in Ukraine and abroad. Registration of enterprises in Ukraine and abroad, corporate law, offshore jurisdictions and offshore companies, business consulting, audit, certification, LLC registration, registration of financial companies, asset management companies, mutual investment funds, registration of joint-stock companies, issuance of securities and bonds, support for foreign investments, construction licences, obtaining design and construction permits, and other services for successful business in Ukraine — we are pleased to offer our clients a full range of basic turnkey business services in the shortest possible time!

Our constantly expanding network of regional and foreign partners actively helps to resolve our clients' issues when doing business both in Ukraine and abroad.

We always work toward the result you need and will do everything to achieve it as quickly as possible within the required timeframe, clearly taking into account your wishes and requirements! Why is it better to start a business in Ukraine with UBC? The answer is simple — we have much more experience, practice, resources and opportunities. We have been and remain leaders in Ukraine in the field of corporate services.

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