Overview

Trade Loan
 
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

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:


Maximum Loan Quantum
 S$10 million / borrower group

Note: Overall loan exposure limit of S$50 million per borrower group across all areas.
Maximum Repayment Period
 1 year
Risk-Share
 The borrower is responsible to repay 100% of the loan amount. When defaults occur, the 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’ assessments of risks involved.

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.

 

Eligibility
 
  1. Be registered and operating in Singapore
  2. Have a minimum of 30% local shareholding
  3. Maximum Borrower Group1 revenue cap of S$500 million for all enterprises
1 Borrower Group consists of the borrower as well as 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 are computed on a group basis).
FAQ
 

Click here for frequently asked questions on EFS Trade Loan. 

Click here for frequently asked questions on EFS.