Loan Insurance Scheme (LIS)

Overview

About

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

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

Eligibility

Companies applying for the LIS should meet the following criteria:

1. Be a business entity that is registered and physically present in Singapore, and
2. At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and
3. Group revenue of up to S$100 million or maximum employment of 200 employees.

Apply

Interested enterprises may approach any of the following Participating Financial Institutions (PFI) to apply for trade loan backed LIS.

List of Participating Financial Institutions:

• LIS is administered directly by the PFIs.
• Applications must be submitted to any of the PFIs listed above.
• PFIs will advise enterprises on the required documentation in completing the application process.
• Loan approval is subject to PFI’s approval.