FINANCING INSTRUMENTS

A medium- to long-term loan provided by banks or other financial institutions to finance capital expenditure, with a view to increasing capacity and long-term competitiveness. Investment loans are typically used for business expansion, acquisition or modernisation of equipment and facilities.

This instrument is used to finance large investment projects, such as the construction of factories, infrastructure facilities or power generation units. Financing is based on the future cash flows of the project.

A short- to medium-term loan designed to finance day-to-day operational needs. Working capital loans are typically used to cover expenses such as payroll, raw materials, inventory purchases, accounts payable, and other short-term liquidity requirements necessary to sustain business operations.

Short- to medium-term financial instruments that support domestic and international trade transactions. Common trade finance instruments include letters of credit, bank guarantees, documentary collections, and short-term trade loans. These tools are typically linked to specific contracts or shipments and are widely used by exporters and importers.

Instruments that combine commercial and concessional (non-repayable) financing to implement projects that have both economic and social or environmental benefits.

Irrevocable financial assistance provided by governments, international organisations, charitable foundations or institutions to support business, socially significant projects or innovative solutions. Grants do not require repayment of funds, which makes them particularly important for micro and small enterprises, as well as attractive for the development of new projects or the introduction of technologies.

This often takes the form of consultancy and training services, which are provided in conjunction with the financing and help businesses improve their operations, introduce new technologies, develop human capital, and improve management or administrative processes.

Provides capital in exchange for an ownership stake in a company. For Ukrainian businesses, it is a key alternative to bank lending during the war, as it does not create fixed repayment obligations and enables long-term partnerships focused on growth and resilience.

An asset-based financing instrument that allows businesses to acquire essential fixed assets, such as machinery, transport, or equipment, with minimal upfront payment. It is relevant for companies seeking investment financing, preserving liquidity, and avoiding additional collateral. Financial leasing typically transfers ownership at the end of the contract, whilst operating leasing offers flexible use and upgrade options.

A financial instrument that converts receivables into immediate liquidity, accelerating cash flow and capital turnover. It is relevant for businesses, especially SMEs, working with deferred payment terms or large corporate/public-sector clients, providing an alternative to traditional bank loans and enhancing operational efficiency. Factoring also mitigates payment delay risks and strengthens financial stability.

A financial instrument that reduces the risks for the bank by providing compensation for part or all of the loan amount in the event of non-repayment. Guarantees can be provided by both government agencies and international financial organisations.

Provides enterprises engaged in the export of goods or services with financial resources for the development of international trade. This can take the form of both export loans and export risk insurance.

A risk-transfer instrument through which businesses pay a premium to cover potential losses, with providers compensating for defined risks; in Ukraine, traditional insurance is increasingly being complemented by emerging political and war-risk coverage mechanisms.