Overview

Finance trade needs, including:

Inventory / stock financing
Structured pre-delivery working capital (revolving working capital)
Factoring (with recourse) / bill of invoice / AR discounting
Overseas working capital loan
Bank Guarantee (capped at 2 years tenure)

EFS Trade Loan covers enterprises’ domestic and overseas transactions. It also complements the current Loan Insurance Scheme (LIS) by insuring loans which are beyond the capacity of current LIS insurers.

The diagram below illustrates how Loan Insurance Scheme and EFS Trade Loan help enterprises secure trade loan facility:

Note: As announced at Solidarity Budget 2020, the EFS Trade Loan is enhanced to help enterprises with their trade financing needs. The maximum loan quantum was raised from S$5 million to S$10 million. The risk-share was also increased to 90% (from 50% and 70% for young companies) for new applications initiated from 8 April 2020 until 31 March 2021.

Extension of enhanced EFS-TL
The enhanced EFS-Trade Loan will be extended for 6 months, from 1 April 2021 to 30 September 2021.

Maximum Loan Quantum	S$10 million / borrower group¹ Note: Overall loan exposure limit of S$50 million per borrower group across all areas.
Maximum Repayment Period	1 year
Risk-Share	To 31 March 2021: Risk share is at 90% From 1 April 2021 to 30 September 2021: Risk share is at 70% The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.
Interest Rate	Subject to PFIs’ assessment of risks involved.

¹ Borrower Group consists of the following:

a.	Borrower; and
b.	Corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down. (Annual sales turnover and employment size is computed on a group basis.)

Be a business entity² that is registered and physically present in Singapore, and
At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and
Have Group Annual Sales Turnover of not more than S$500 million

² ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the scheme. Approval of the loan is subject to the PFI’s assessment.

Click here for frequently asked questions on EFS Trade Loan.

Click here for frequently asked questions on EFS.