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:
Companies applying for the LIS should meet the following criteria:
Interested enterprises may approach any of the following Participating Financial Institutions (PFI) to apply for trade loan backed LIS.