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 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 (related entity of Funding Societies)	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	info@ifscapital.com.sg / 6270 7711
Maybank Singapore Ltd and Malayan Banking Berhad, Singapore Branch	1800 777 0022
Oversea-Chinese Banking Corporation Ltd (OCBC Bank)	6538 1111
RHB Bank Berhad	1800 323 0100
Standard Chartered Bank	1800 747 7000
United Overseas Bank Ltd	1800 2266 121