Entering public tenders in several European Union countries is a great growth opportunity for many companies. The common public procurement framework allows any organization established in a Member State to participate in public tenders in other countries without discrimination.
However, the initial excitement often clashes with operational reality: how to meet the requirements of each tender without skyrocketing financial costs, using up bank credit or locking in unnecessary resources?
The answer lies in understanding the European framework, using the available tools, and choosing more efficient guarantee solutions than traditional bank guarantees.
The challenge: managing guarantees in each country
When a company decides to participate in public tenders across various European countries, one of the main challenges is managing the guarantees required:
- Bid bonds: ensure the seriousness of the offer.
- Performance bonds: ensure fulfilment of the contract if awarded.
Each tender requires its own guarantee, with a specific amount, contract, and beneficiary. In other words, a guarantee cannot be reused for different tenders or countries.
If the process is handled in a fragmented way, the result is clear: multiple bank guarantees, increased credit exposure, and rising financial costs. This scenario limits the real ability for international expansion.
What is recognised across the EU: Documentation
What many companies are unaware of is that the EU regulations are designed to facilitate cross-border participation and avoid duplicated administrative paperwork.
Directive 2014/24/EU establishes harmonised rules and the principle of mutual recognition. This means that certificates, deeds, financial statements or declarations issued in one country must be accepted in another, as long as they serve the same purpose.
To make this principle effective, there are two key tools:
- ESPD (European Single Procurement Document): a standardised declaration that simplifies document submission across all EU countries.
- e-CERTIS: the official platform of the European Commission that verifies the equivalency of required documents in each country.
Thus, even though guarantees must still be issued for each specific tender, document management ceases to be an obstacle and becomes a competitive advantage.
The strategic shift: from bank guarantee to surety bond
True efficiency is achieved when the company replaces the bank guarantee with a surety bond. This alternative offers the same coverage, but with clear advantages:
- It does not immobilise funds or consume bank credit lines.
- It is not recorded in the Bank Report Risk, preserving the company’s borrowing capacity.
- It can be structured as an international surety line, with insurers operating in multiple countries, allowing all guarantees to be managed from a single platform with consistent conditions.
In this way, although each tender still requires its own guarantee, the company avoids negotiating bank guarantees in each local market and keeps its liquidity intact.
How to Prepare a Guarantee Strategy Without Duplication
To make it all work, you need a structured and strategic approach:
- Centralise your documentation: use the ESPD as a base and keep common certificates up to date for all tenders.
- Validate document equivalence in e-CERTIS: ensure documents issued in one country will be accepted in another.
- Choose international providers: insurers and advisors specialised in operating across various European markets.
- Design an international surety line: flexible, scalable, and aligned with your growth strategy in Europe.
Sammy Free: Smart Guarantees to Grow in Europe
At Sammy Free, we help companies compete beyond their home country without duplicating costs or sacrificing liquidity. Our experience and international expansion strategy support us, along with our participation in the Brokerslink Europe Meeting to showcase the latest trends and developments.
We provide surety bond solutions valid for projects in multiple European countries, working with leading insurers and a comprehensive view of the public market. Our goal is to simplify processes, reduce costs, and keep your competitiveness strong in every tender.
Ready to take the leap into Europe with a smarter guarantee strategy? At Sammy Free, we’ll help you make it happen.
