United Bank of Albania offers a wide range of loans and financings which can be combined to suit your commercial needs and your business. The bank is focused in financing of the small and medium enterprises (SME).

The bank offers several types of loans for the financing of different entities. Regarding the tenor, the bank offers short term loans (up to 1 year) and medium term loans (up to 5 years).

Financings for Small and Medium Enterprises (SME)

The SME loans are offered to the small and medium enterprises and are used to finance the needs for working capital and investments. These loans are offered in Leke, USD and Euro.

United Bank of Albania approves for the SME loans up to a maximum of 20% of sales.

In order to finance your activity, you can choose one of the following types of loans:

Business Loan – which can be withdrawn gradually or in a single tranche. In case when this loan is withdrawn gradually you determine a repayment schedule for each amount withdrawn. Through this product you can easily plan the cash flow in your company.

The maximal amount of this loan is Euro 400,000 and the maximal tenor is 5 years for purchase of machinery and other investments.

Terms and conditions

The borrower can be a commercial company which exercises its business activity for more tham 3 years and has an annual turnover which varies from 500,000 Euro up to 3,000,000 Euro. 

The borrower should fulfill the bank’s criteria in order to obtain the required amount of loan.

The borrower should have verifiable sources for the loan repayment – evidence of the capacity to fulfill the obligations deriving from loan, the capacity of repaying the loan along with its interests and commissions within maturity date and in accordance with the conditions agreed upon.


The collateral should be liquid, cash or real estate, with a value of 140% of the loan amount. The machinery and equipment will not be accepted as collateral.

Credit line with bullet repayment:

The loan with bullet repayment is a credit line that United Bank of Albania offers to the borrowers to increase the working capital and finance purchase of goods. The repayment will be total in one tranche after the sale of goods.

Revolving loan for working capital:

Partial disbursements and revolving loans to serve to the working capital needs and finance the imports and exports. Term of repayment of each disbursement can vary depending on business cycle, always less than 1 year, renewable.

Letters of Credit and Letters of Guarantee Line:

Letters of Credit and Letters of Guarantee are credit lines which cover short term credit facilities (up to one year) which are used by the borrowers to increase the working capital and/ or guarantee the other party through opening Bank Guarantees or Letters of Credit to secure the financing of imports, exports and others.

Letters of Credit line- the Bank, through its correspondents abroad, undertakes to pay on behalf of the client on basis of the documents delivered in the bank; Letter of Credit helps in the trade relations with suppliers/ clients and it can be transformed in an overdraft line or a credit with maturity date.

Letters of Guarantee Line:- the bank guarantees the third parties, on behalf of the client (debtor), the payment of the obligation. 

Medium term financings:

Medium term financings can be given for a period of up to 5 years. Their purpose is financing of the purchase of equipment, new machinery, construction of warehouses and financing of development projects.

Conditions and criteria

The borrower should be a juridical subject operating in the Republic of Albania for a period of at least three years.

The following types of business are not eligible for our credit lines:

  • fate games/ gambling
  • tabacoo and alcoholic drinks
  • bars, restaurants, hotels, motels
  • political parties
  • pornografic activities, or similiar
  • trade and production of weapons.

The borrower should fulfill the criteria of United Bank of Albania also with regard to the purpose of loan.

The borrower should present evidence of the ability of loan repayment – proof of the capacities to fulfill the obligations deriving from loan, repayment of loan plus the interests and commissions within maturity term and as per agreed conditions.


All types of acceptable security being agreed upon by both the client and the bank including instruments for applying lender’s rights.

Loan for Business Development

Apply for medium term loan for business development and the repayment of the loan will be done after developing works are finished.

This loan allows you to purchase tangible and intangible assets (real estates, machinery, technological line) their improvement, reconstruction and maintenance, purchase of technical expertise, financing of researches and financial investments.

The bank disburses the funds on basis of the customs documents and supplier’s invoices on basis of the signed contracts which ensure the investment plan for the approved loan and with a specified term of repayment.

The repayment of loans is done through the available funds usually in shape of monthly installments, and regarding to the investment plan, you can apply for a preferential tenor on basis of the principal which has to be repaid after completion of works.

Criteria for loan granting

Evidence of repayment capacity – is the proof of repayment ability which fulfills the obligations deriving from the loan, the repayment of principal along with interests and commissions within maturity and according to the conditions priorly agreed.

Purpose of loan – the bank grants the loan for a specific purpose related to the investments financing, purchase of fixed assets for the development of his business. The Bank does not grant loans for businesses which can jeopardize the public order, moral principles and other legal requirements.

The loan, including interests and commissions, should be sufficiently covered by the collateral.

The collateral that the bank usually requires:

  • Real estates, pledge over assets, securities and receivables,
  • Cash deposit in the bank
  • Bank guarantee.

Additional conditions can be requested depending on the nature of the loan, the collateral, type of business, trustworthiness and experience of the borrower.

The commissions of the loan:

  • The Interest: it is based on the cost of funds plus a profit margin. It is also depending from the amount of loan, risk profile of the client and total value of loan
  • Administrative expense: 1% of loan amount for a tenor of up to 1 year; 1.5% of loan amount for a tenor of 13 months till 36 months; 2% of loan amount for a tenor of 37 months till 5 years.
  • Basic Interest: yearly/ fixed.

Other administrative expenses/ legal/ documentation/ evaluation of collateral.


  1. Duly completed loan application form of the Bank.
  2. Background of the Company and Balance Sheet for the past three years.
  3. Bank’s statement for the past year.
  4. Resolution of the Shareholders Assembly to recognize the Administrator or the person/s in charge to sign the loan Contracts or Securities Documents with the Bank and the right to act as party in Loan Contracts or  to act as third party guarantor.
  5. Act of Foundation and the Statute of the Company.
  6. Court decision for registration as a physical or juridical person or other applicable documents of registration with the authorities and licenses of business.
  7. Certificate issued by the taxation office (license) and all the other licenses required by the company to carry its commercial activity.
  8. Certificate of Good Standing issued by the Commercial Register Office, with the company data and current status of it .
  9. Clearance Certificate from taxation office.
  10. Identity documents and family certificates of shareholders and their spouses.
  11. Insurance coverage by Insurance Institutes of the building, the property mortgaged or the business.
  12. Certificate of Identification number for taxed person - NIPT.
  13. Bank Letter of Guarantee securing the facility repayment, if the case.
  14. Any other document deemed necessary by the bank, as case may be.


A documentary credit represents a commitment of a bank to pay the seller of goods or services a certain amount provided he presents stipulated documents evidencing the shipment of goods or the performance of services within prescribed period of time.

The Letter of Credit is the most common way for payment of goods and services in the trade relationships. The Letter of Credit represents the bank’s obligation to ensure the payment which is stipulated in the letter of credit upon honoring of its conditions. The Letter of Credit is used usually when the partners do not know each other and wish to avoid the risk of the business.

A Letter of Credit, in its most common form, is a document with which a bank substitutes its credit with the one of another debtor. The basic structure of a letter of credit is a commitment legally binding of the “issuing bank” to pay a second party known as “the beneficiary” on behalf of a third party known as “the account party” or “the opener”.

The account party is the initiator of the transaction. The terms and conditions stipulating the bank’s obligation will be set out in the letter of credit.

A letter of credit transaction includes three agreements:

  1. The agreement between the party of the account and the beneficiary which causes the use of the letter of credit.
  2. the agreement between the party of the account and the issuing bank which determines their mutual obligations, including the one of the party of account to reimburse the issuing bank when payments are made to beneficiary in accordance with the terms and conditions of the letter of credit.
  3. The agreement between issuing bank and beneficiary (in the text of letter of credit) which specifies the conditions to be met before the payments are made.

Export Letter of Credit 

The Seller (Beneficiary) is in the quality of the exporter. United Bank of Albania, in the quality of advising bank, advises the seller of the letter of credit e.g. commitment in writing by the issuing bank to pay the seller the amount of letter of credit immediately after fulfillment of the conditions set out in the letter of credit. The confirmation of the letter of credit by United Bank of Albania (confirming bank) on the basis of the application of the issuing bank, represents the liability of confirming bank (aside the liability of issuing bank) to pay the seller the amount of letter of credit (immediately after conditions fulfillment).

The letter of credit can be transferable and gives to the seller the possibility to transfer all the rights and obligations deriving from the letter of credit (or a part of them) to his sub-contractor (second beneficiary). The issuing bank should clearly identify a transferable letter of credit. The transfer of letter of credit is usually used by the businessmen or the intermediary companies.

Import Letter of Credit

Import Letter of Credit – the buyer (applicant) is in the quality of importer. On basis of a written application at United Bank of Albania, as issuing bank, offers in writing an irrevocable commitment on behalf of the buyer, to pay the seller the amount of Letter of Credit immediately after fulfillment of letter of credit.

Benefits for the Seller

In case of a foreign Letter of Credit, the risk of the foreign bank or of the foreign country can be eliminated when the local bank confirms the Letter of Credit. Based on this confirmation the confirming bank commits to execute the payment after after fulfillment of the conditions of the Letter of Credit.

After bank’s notification on opening of the Letter of Credit the seller can make the delivery of goods/ services.

Legal protection through Standard Customs Practices for Documentary Credits, issued by the International Chamber of Commerce in Paris No. 600/2007.

Benefits for the Buyer

Letter of Credit guarantees the buyer that he will pay only after fulfillment of the Letter of Credit conditions.

The Letter of Credit is based on the right selection of needed documents and guarantees the buyer that the goods will be transported in the required time, quality and quantity.

Possibility to combine with the bank guarantee issued by the seller’s bank.

Legal protection through Standard Customs Practices for Documentary Credits, issued by the International Chamber of Commerce in Paris No. 600/2007.

How to apply for a Letter of Credit:

The applicants fill in the form of opening of documentary Letter of Credit.

The buyer delivers the relevant copy of the contract or the form of Letter of Credit.

Afterwards the bank issues the documentary Letter of Credit as per the instructions set in the application form for opening Letter of Credit and informs the seller about his obligations through a swift message sent to the seller’s bank.

Bank Guarantee: 

  • Bid Bond
  • Performance bond
  • Payment guarantee
  • Customs guarantee
  • Other guarantees
  • Documentary collection

It represents the way of payment for goods or services. It is used for foreign trade when it is not possible or appropriate the issuance of documentary Letter of Credit, but it is required a payment guarantee greater that the clean payment guarantee. 

Documents required

  • A short description of the business, of organizational structure of the borrower, including shareholders. A detailed description for the last 12 months is a necessity.
  • Partnership agreements in Albania or outside for the sale or development of the product (if any)
  • Financial statements of the business for the last 3 years (audited, if possible) and provisional financial statements for the current year.
  • Business plan, including the future projections as well as the analysis of negative factors in the respective business.
  • Documents proving the origin of the property which will serve as collateral.
  • Certificate issued by the respective authority confirming that the property is free of any charge or burden.
  • Evaluation of collateral (confirmed by the authorized appraisal).
  • Insurance policy of the collateral.
  • Life insurance of the borrower.
  • Documents showing the obligations of the borrower to third parties (banks included).
  • Agreements or contracts with the suppliers or consumers.  

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Nd. 11, H. 3, Njesia Bashkiake Nr.7,
Postal Code 1023, PO Box 128,
E-mail: info@uba.com.al

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