Loan Insurance Scheme (LIS)/Loan Insurance Scheme Plus (LIS+)
Loan Insurance Scheme (LIS) provides an avenue for Singapore companies to obtain trade financing through the use of loan insurance. It is a joint programme between SPRING Singapore and IE Singapore and part of the insurance premium will be sponsored by the Government.
Loan Insurance Scheme Plus (LIS+) is a complementary programme to LIS. It aims to avail larger tranches of trade financing lines to more businesses.
- Wide range of loan facilities may be considered under LIS/LIS+ including
- Inventory/stock financing loans
- Structured pre-delivery working capital facilities (including revolving working capital facilities related to underlying trade transactions)
- Factoring/Bill or Invoice or accounts receivable discounting with recourse
- Overseas Working Capital Loans Support Facilities (Borrower of the LIS5 Loan is a majority-owned overseas subsidiary of a Singapore-based company)
- Banker’s Guarantee in support of contract fulfillment
- Financing may be used for a broad range of business activities, including to
- Support establishment of inventory storage and distribution hub
- Expand existing manufacturing capacity
- Diversify into other product lines and capabilities
- Augment working capital needs
- Expand trading into new markets
- Broaden distribution channels
- Support and fund their majority-owned overseas subsidiaries
Who can apply
For domestic facilities
You can apply for LIS/LIS+ if your company meets the following criteria:
- Registered and operating in Singapore
- At least 30% of your company’s shareholding is local
- Company’s Group* annual sales of not more than S$100m OR Company’s Group* employment size of not exceeding 200 workers
|*||Annual sales turnover and employment size will be computed on a group basis. (i.e. All levels up for corporate shareholders holding >50% of total shareholding of the applicant company and any subsequent corporate parents, and subsidiaries all levels down)|
For export-oriented facilities
You can apply for LIS/LIS+ if your company meets the following criteria
- Companies registered with Accounting & Corporate Regulatory Authority of Singapore with at least 3 strategic business functions in Singapore.
- Group Turnover Cap (including subsidiaries)
- Non-Trading companies: =< S$300m
- Trading companies: =<S$500m
(Company is considered a trading company if more than 50% of turnover comes from buying and selling goods.)
Companies applying for both domestic and export facilities must meet both sets of criteria stated above.
With effect 01 April 2016, insurance premium imposed on loan facilities covered under LIS will range from 0.875% p.a. to 1.412% p.a. (after SPRING’s 50% subsidy), subject to approval by insurers. GST on the insurance premium is to be paid by the applicant when the loan is approved.
Please note that the government subsidy for the loan insurance premium for Overseas Working Capital Loans Support Facilities will be pro-rated by the Singapore-based company’s share in the overseas subsidiary.
An insurance premium of 1.5% p.a. and GST will be imposed on loan facilities covered under LIS+. The premium is to be paid by the applicant when the loan is approved.
For more information, call our Business Banking hotline 1800-777 0022, or request a call back with our Business Development Managers today.