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Overview

Venture Debt
 

Finance the growth of innovative enterprises using Venture Debt and Warrants.

This form of financing is typically suited for high growth start-ups that do not have significant assets to be used as collateral under traditional bank lending. The warrants, or rights to purchase equity, is to compensate for the higher risk of loan default.

Enterprises may use the Loan to:
  • Grow and expand existing capacity
  • Diversify into other product lines
  • Augment working capital needs
  • Undertake new projects
  • Undergo merger and acquisitions
Maximum Loan Quantum
S$5 million / borrower group1

Note: Overall loan exposure limit of S$50 million per borrower group across all areas.
Maximum Repayment Period
5 years
Risk-Share
Risk share is at 50%. Young companies2 may receive a risk share of 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.)
2 Young companies refer to firms formed within the past 5 years with at least 1 employee, and more than 50% equity owned by individuals.
Eligibility
 
  1. Be a business entity3 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. Have 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.

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(Last updated on 24 November 2020 09:12:22)