Enterprise Financing Scheme – Trade Loan

For enterprises with trade financing requirements.

As announced in Budget 2024, enhancement to maximum loan quantum for EFS – Trade Loan at S$10 million will be extended until 31 March 2025.

From 1 April 2024, the enhanced risk share of 70% will be maintained for young enterprises and enterprises trading in challenged markets.

About this financing scheme

The Enterprise Financing Scheme - Trade Loan (EFS-TL) finances 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-TL covers enterprises' domestic and overseas transactions.

Loan details

Maximum Loan Quantum	S$5 million / borrower From 1 July 2022 - 31 March 2025: S$10 million / borrower Note: Borrowers are subject to an overall borrower group³ 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	1 year
EnterpriseSG Risk-share	Risk share is at 50% Young enterprises or enterprises operating in a challenged market may receive a risk share of 70% Borrowers are responsible to repay 100% of the loan amount When defaults occur, the participating Financial Institutions (FIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against EnterpriseSG for the unrecovered amount in proportion to the risk-share
Interest Rate	Subject to participating FIs’ assessment of risks involved

¹ Young enterprises refer to firms formed within the past 5 years with at least 1 employee and more than 50% equity owned by individuals.

² Challenged markets refer to countries with an S&P rating of BB+ and below, including non-rated countries.

³ A Borrower Group consists of the following:

Borrower
Corporate shareholders holding more than 50% at all levels up
Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all levels down

Eligibility

Business entity registered and operating in Singapore
- ACRA-registered Sole Proprietorships, Partnerships, Limited Liability Partnerships and Companies are eligible to apply
- Approvals of loans are subject to the participating Financial Institution's assessment
Company has at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership
Company's Group Annual Sales Turnover should not not exceed S$500 million

How to apply

Interested enterprises may approach any of the following participating Financial Institutions to apply for the loan (subject to banks’ credit approval).

Financial Institutions for EFS-TL	Contact Details
CIMB Bank Berhad	6438 7888
DBS Bank Ltd	1800 222 2200
FS Capital Pte Ltd	6221 0958
GB Helios Pte Ltd (previously known as Goldbell Financial Services)	talktous@gbhelios.com.sg / 8399 2340
The Hongkong and Shanghai Banking Corporation	1800 216 9008 / 6216 9008
Hong Leong Finance Ltd	1800 3388 338
IFS Capital Ltd	6270 7711
Maybank Singapore Ltd and Malayan Banking Berhad, Singapore Branch	1800 777 0022
Oversea-Chinese Banking Corporation Ltd (OCBC Bank)	6538 1111
Resona Merchant Bank Asia Ltd	6224 7155 / 6228 6124
RHB Bank Berhad	1800 323 0100
Standard Chartered Bank	1800 747 7000
United Overseas Bank Ltd	1800 2266 121