Banker's Guarantee, No Collateral

A collateral-free Banker's Guarantee is a guarantee issued by the bank without requiring you to place any form of collaterals against the guarantee amount.

With a traditional cash-backed Banker’s Guarantee, the full guarantee amount is held by the bank as cash collateral for the duration of the guarantee. With a collateral-free Banker’s Guarantee facility, you do not need to set aside the equivalent cash amount, allowing those funds to remain available for business operations, growth opportunities, inventory purchases or payroll.

All new and existing UOB SME Banking Emerging Enterprise customers with at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s) are eligible for collateral-free Banker’s Guarantee.

Yes. Digital guarantee (aka electronic guarantee) can be issued under the collateral-free Banker’s Guarantee facility.

For more details regarding digital guarantee issuance, you may refer to eGuarantee@Gov Programme

Yes. The facility limit is reusable, provided the Banker’s Guarantee has been discharged, cancelled, expired, or otherwise released from the Bank’s liabilities. Once the obligation is fully extinguished, the corresponding limit will be made available for future guarantee issuances, subject to the approved facility limit and the Bank’s assessment criteria.

If your business regularly places cash with the bank to support Banker’s Guarantee issuance, a collateral-free Banker’s Guarantee can help:

• Release trapped cash back into your business.
• Improve liquidity without compromising contractual obligations.
• Increase financial flexibility to pursue new opportunities.
• Strengthen cash flow management and return on capital.

Instead of having cash idle as collateral, your funds can be redeployed to generate business growth and support day-to-day operations.

Government agencies / government linked entities / commercial landlords are acceptable beneficiaries, subject to bank’s approval.

Up to 5 years, subject to bank’s approval

Register your interest here and fulfill all terms and conditions stipulated in the letter of offer to qualify.

Commission Charges

• Min. 2.0% p.a. or S$150, whichever is higher, subject to bank arrangement

Non-standard text

• S$100 flat (this charge is in addition to issuance fee)

Amendment

• Amount: Same fees as issuance
• Tenor: Same fees as issuance
• Other Amendment: S$75 Flat

No. All applications are subject to UOB's assessment and approval criteria. Terms and conditions apply.