Overview

Note:

The Enhanced EFS – Trade Loan (EFS – TL) has been further extended to 31 March 2023, with the parameters as listed below.

Beyond the period of this extension, the enhanced risk share of 70% will be maintained for young enterprises and enterprises trading in challenged markets1.


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
  • Bank Guarantee (capped at 2 years tenure)

EFS Trade Loan covers enterprises’ domestic and overseas transactions.

Maximum Loan Quantum

S$5 million / borrower

From 1 July 2022 - 31 March 2023: S$10 million / borrower

Note: Borrowers are subject to an overall borrower group2 limit of S$20 million for EFS – TL. In addition, there is an overall loan exposure limit of S$50 million per borrower group across all facilities.

Maximum Repayment Period
 1 year
ESG Risk-Share
 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 Challenged markets refer to countries with S&P rating BB+ and below, including non-rated countries.
 2 Borrower Group consists of the following:
a. Borrower; and
b. Corporate shareholders holding more than 50% at all levels up; and.
c. Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
d. Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all level down
Eligibility
 

SME should meet the following criteria:

  1. Is a business entity3, registered and physically present in Singapore
  2. Has at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
  3. Has Group Annual Sales Turnover of not more than S$500 million
3 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.
FAQ
 

Click here for frequently asked questions on EFS – Trade Loan. 

Click here for frequently asked questions on EFS.