Enterprise Singapore partnering up with major banks and financial institutions in Singapore to assist SME in getting the loan for their business needs.
A brief summary of the different types of loan schemes available for SMEs to apply for.
For detailed information, check the link - https://www.smeportal.sg/content/smeportal/en/moneymatters/loans.html
Singapore-based M&OE companies can access working capital to finance their operations and bridge short-term cash flow gaps.
Singapore-based Marine & Offshore Engineering (M&OE) companies can get support to tide over the slowdown in the industry by accessing up to S$15 million in bridging loans. This will help you finance operations and bridge short-term cash flow gaps.
Enterprise Singapore shares the risk of loan defaults with Participating Financial Institutions in the event of company insolvency. This loan, available from December 2016, is one of two measures to provide one-off financial support for companies in the industry.
Financing support to meet business needs at every stage of growth.
- Streamlined financing support schemes to ensure businesses have access to financing at every stage of growth. - One umbrella scheme encapsulating six different financing areas – working capital, fixed assets, venture debt, trade, projects, and mergers & acquisitions. - EFS will provide enhanced support with higher risk share from Government in two areas: Young companies* will receive government risk sharing of up to 70% with participating financial institutions (PFIs).A higher risk share will be provided for fixed assets, project, and M&A financing in markets with Standard & Poor’s Sovereign ratings below BBB- or unrated. - The maximum insurance cover for overseas project financing under EFS will be raised to S$50mil, and the maximum tenure will be extended to 15 years. - The scheme will also provide a higher maximum loan cover of S$50mil for M&A projects to allow companies to quickly build new capabilities to expand overseas.
- The loan will be extended till 31 March 2021, and will become part of the new EFS.
Singapore-based Marine & Offshore Engineering (M&OE) companies can receive greater funding support through the enhanced Internationalisation Finance Scheme (IFS), to tide over the slowdown in the sector.
Singapore-based Marine & Offshore Engineering (M&OE) companies can receive greater funding support through the enhanced Internationalisation Finance Scheme (IFS), to tide over the slowdown in the sector.
With IFS M&OE, companies have opportunities to access financing facilities provided by Participating Financial Institutions (PFIs) with maximum loan quantum of up to S$70 million in the following categories:
- Asset-based financing to purchase fixed assets, or to purchase/construct factories.
- Structured loans to finance the working expenses of secured projects.
- Banker’s guarantee for issuance of guarantee facilities for secured projects which can take the form of advance payment guarantee or performance guarantee.
- Merger and Acquisition financing to finance acquisition of equity stakes in businesses for expansion. The acquisition should be in line with the applicant’s core business.
Mid-sized Singapore-based companies developing local and regional infrastructure projects can tap the IFS-NR to manage risk.
Mid-sized companies can access up to S$50 million in project financing for local and overseas development projects with the Internationalisation Finance Scheme for Non-Recourse (IFS-NR).
Enterprise Singapore co-shares default risks with Participating Financial Institutions (PFIs) to look beyond the borrowers’ balance sheet and instead rely on project income streams when extending project finance loans.
The LIS helps companies secure short-term trade financing by insuring banks against the insolvency risks of borrowers.
Companies can secure short-term trade financing with the Loan Insurance Scheme (LIS), which insures the banks against insolvency risks of the borrowers. Loans are underwritten by commercial insurers, while a portion of the insurance premium is supported by the Government.
Companies can apply for the LIS to secure short-term trade financing lines such as:
Inventory / stock financing facility Structured pre-delivery working capital Factoring / bill or invoice or accounts receivable discounting with recourse
The PRIS provides a 50% subsidy on political risk insurance premiums for Singapore-based companies that venture overseas.
Political risks insurance (PRI) is an important tool for companies to safeguard their projects and/or investments in overseas markets against political uncertainties.
Companies can also use PRI to unlock access to mid to long-term financing as it gives lenders additional assurance that the impact of political uncertainties over the performance of a project or investment has been mitigated.
With Political Risk Insurance Scheme (PRIS), qualifying Singapore companies can receive premium support for PRI policies. Enterprise Singapore will support 50% of the premium for up to the first three years of each PRI policy. This is subject to a maximum amount of S$500,000 per qualifying Singapore-based company.
A typical PRI policy covers risks such as:
Expropriation Currency inconvertibility and transfer restrictions Political violence Breach of contract by host government Non-honouring of sovereign financial obligations
Companies can access financing of up to S$15 million to purchase equipment, machines or selected factory properties.
Small and medium enterprises (SMEs) can apply loans of up to S$15 million through the Local Enterprise Finance Scheme (LEFS) to purchase equipment, machines or selected factory properties.
Small companies with 10 or fewer employees can access up to S$100,000 through the SME Micro Loan to support your daily operations.
Small companies that are just starting out can apply for the SME Micro Loan that offers funding of up to S$100,000 to help you better manage daily operations and cash flow.
To make the loan more accessible to new companies set up in three years or less, Enterprise Singapore shares the risk of loan defaults with Participating Financial Institutions in the event of company insolvency.
Fast-growing and innovative companies can expand their operations with venture debt financing of up to S$5 million.
Fast-growing and innovative companies can expand their operations with venture debt financing of up to S$5 million.
Introduced in October 2015, the Venture Debt Programme (VDP) serves as an additional financing option for SMEs where venture debt providers may combine loans with rights to purchase equity.
To facilitate continued access to alternative financing, the VDP will be extended for another three years from 1 April 2018 to 31 March 2021.
Enterprise Singapore shares 50% of the risk of loan defaults with Participating Financial Institutions (PFIs) in the event of company insolvency. Interest rates, repayment structures, collateral and warrant structures will be determined by the PFIs.
SME Working Capital Loan EXTENDED
Companies can get access to unsecured working capital financing of up to S$300,000 to support daily operations.
Get greater access to unsecured working capital loans of up to S$300,000 through the SME Working Capital Loan. Launched in June 2016, the loan acts as an additional financing option by helping eligible companies cope with larger working capital and cash flow needs. The loan programme will be available till 31 May 2019
The TCIS protects companies against cash flow problems arising from situations beyond control such as non-payment from buyers.
Trade Credit Insurance (TCI) is an insurance protection that your company can purchase to protect itself against non-payment by your buyers, allowing you to acquire new customers with greater confidence.
The Trade Credit Insurance Scheme (TCIS) defrays the cost of insurance for companies by supporting part of the minimum premium payable.