Enterprise Financing Scheme – Venture Debt
For high-growth startups that do not have significant assets to be used as collateral under traditional bank lending
As announced at Committee of Supply 2023, the EFS-Venture Debt Programme will be enhanced to extend support to venture debt loans backed by Redeemable Convertible Preference Shares (RCPS), to allow more flexible repayment plans for early-stage /deep tech start-ups with irregular cash flow.
About this financing scheme
The Enterprise Financing Scheme – Venture Debt (EFS-VD) aims to finance the growth of innovative enterprises using Venture Debt and Warrants.
This programme supports high growth enterprises that do not have significant assets to be used as collateral under traditional bank lending. Under the enhanced programme, the venture debt facility can be backed by warrants or redeemable convertible preference shares.
Enterprises may use the Loan to:
|Maximum Loan Quantum||S$8 million / borrower
|Maximum Repayment Period||5 years|
|Interest Rate||Subject to participating FIs’ assessment of risks involved|
- 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
How to apply
|Financial Institutions for EFS-VD||Contact Details|
|DBS Bank Ltd||1800 222 2200|
|Oversea-Chinese Banking Corporation Ltd (OCBC Bank)||6538 1111|
|United Overseas Bank Ltd||1800 2266 121|
Apply via the Enterprise Singapore Incentive Management System (ESIMS)