| Business : Start-up
Business> Loan Insurance Scheme Tranche3 |
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| Loan Insurance Scheme Tranche3 (LIS T3) provides an avenue for SMEs to obtain financing through the use of loan insurance. Under this scheme, the insurance premium is co-shared between Spring Singapore, IE Singapore and your company. |
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Loan facilities
The loan facilities that can be considered for insurance under the LIS T3 are: |
- Inventory/stock financing loans
- Structured pre-delivery working capital facilities (including revolving working capital facilities related to underlying trade transactions)
- Factoring loans with recourse
- Overseas working capital loans support facilities via Standby Letter of Credit or credit facilities made by the Lender through inter-branch cover letter
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| Local enterprises can make use of loans insured under the LIS T3 to: |
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Establish a viable new business
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Support establishment of inventory storage and distribution hub
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Expand existing manufacturing capacity
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Diversify into other product lines and capabilities
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Augment working capital needs
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Expand trading into new markets
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Broaden distribution channels
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Support and fund their majority owned overseas subsidiaries
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| For domestic facilities |
| You can apply for LIS T3 if your company meets the following criteria: |
- At least 30% of your shareholding is local
- Your company’s group fixed assets is below S$15 million*
- You do not have more than 200 employees* (for companies in the service sector)
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| For export-oriented facilities |
| You can apply for LIS T3 if your company meets the following criteria: |
- Singapore-based
- On a group basis, turnover shall not exceed S$200 million (S$500 million for trading companies) for non-listed companies. For listed companies, turnover does not exceed S$100 million (S$200 million for trading companies)
- Presence of at least 3 headquarter functions in Singapore. Headquarter functions refer to activities such as banking & financial; marketing & business planning; procurement/logistics; training & personnel management; investment planning/coordination; research & development; technical support and manufacturing.
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Insurance Premium
An insurance premium of 1.5% will be imposed on loan facilities covered under LIS T3. Spring Singapore/IE Singapore will provide financial assistance to cover 50% of the insurance premium. The remaining 50% of the insurance premium will be payable by the applicant when the loan is approved. |
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apply, simply complete and fax the LIS Application Form (Company), LIS Application Form (Overseas Subsidiary Company) and Commercial Loan Application Form(Company) to 62921463 and we will be in touch with you. |
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| For more information, call 1800-MAYBANK (1800-629 2265) or (65) 6533 5229 (Overseas). |
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* Group basis
Note: For companies applying for both domestic and export facilities, you will have to meet both set of criteria as described above. |
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