Loan Insurance Scheme [Enhanced]

Enterprises can secure short-term trade financing loans via the Loan Insurance Scheme (LIS) from Participating Financial Institutions (PFI). Loans are insured by commercial insurers which co-share loan default with the PFI in the event of enterprise insolvency. A portion of the insurance premium is supported by the Government. Enterprises can apply for the LIS to secure short-term trade financing for the purpose of:

• Inventory/ stock financing facility

• Structured pre-delivery working capital

• Factoring/ bill or invoice or accounts receivable discounting with recourse

• Overseas Working Capital Loan • Banker’s Guarantee

Funding

As announced at Supplementary Budget 2020, support for the LIS insurance premium will be increased to 80% (from 50%) until 31 March 2021.

Eligibility

Companies applying for the LIS should meet the following criteria:

• Be a business entity that is registered and physically present in Singapore

• At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership

• Group revenue of up to S$100 million or maximum employment of 200 employees

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