Loan Insurance Scheme (LIS)
The Loan Insurance Scheme (LIS) is a joint programme between IE Singapore and SPRING Singapore. LIS helps companies secure short term trade financing lines from banks by insuring the banks against insolvency risks of the borrowers.
Loans are underwritten by commercial insurers and a portion of the insurance premium is supported by IE Singapore and SPRING Singapore. The programme also comprises of Loan Insurance Scheme Plus (LIS+) whereby the Government underwrites loans that are beyond the capacity of commercial insurers.
What is the assistance?
Companies can tap on 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
Who can apply?
LIS is a financial assistance programme under IE Singapore’s Global Company Partnership (GCP) programme.
GCP is for all Singapore-based companies with:
- Global aspirations
- Clear internationalisation plan
- Competitive product or service
- Potential economic benefits to Singapore
To qualify for LIS, you would also need to fulfil the following criteria:
- For selling to overseas customers:
- Global HQ anchored in Singapore^
- Singapore-based company with at least 3 strategic business functions* in Singapore
- The turnover of the Singapore-based company and its subsidiaries must not exceed the following:
- Non-Trading Companies: S$300 million
- Trading Companies**: S$500 million
- For selling to local customers:
- At least 30% local shareholding
- Applicant’s group annual sales turnover must not exceed S$100 million OR Applicant’s group employment size must not exceed 200 workers#
^ Global HQ refers to global management control and decision making functions are based in Singapore. Indicators include global CXOs being based in Singapore; board meetings being held in Singapore etc.
*Strategic business functions refer to activities such as (i) banking & financial, (ii) marketing and business planning, (iii) procurement, logistics, (iv) training & personnel management, (v) investment planning/ co-ordination, (vi) R&D and design, (vii) technical support, (viii) manufacturing, and (viiii) other value-added (VA) activities.
**Company will be considered a trading company if more than 50% of turnover comes from buying and selling goods.
# “Group” is defined to be consisting of the Applicant, the Applicant’s corporate shareholders who own > 50% of total shareholding and the Applicant’s subsidiaries where the Applicant holds > 50% of the total shareholding of the subsidiaries.
How to apply? Who are our PFIs?
Applications must be made through any of the PFIs listed below:
|Participating Financial Institutions (PFIs)
|Bibby Financial Services (Singapore) Pte Ltd
|The Bank of East Asia, Limited
|6602 7848/ 6602 7849
|CIMB Bank Berhad
|DBS Bank Ltd
||1800 222 2200
|Hong Leong Finance Limited
||1800 338 8338
|The Hongkong and Shanghai Banking Corporation Limited
||1800 216 9008 / 6216 9008
|Malayan Banking Berhad (Maybank)
||1800 629 2265
|Overseas-Chinese Banking Corporation Limited (OCBC Bank)
|RHB Bank Berhad Singapore
||1800 323 0100
|Standard Chartered Bank
||1800 743 3000
|United Overseas Bank Limited
||1800 226 6121
To find out more
Call us at 1800-IESPORE (1800-437 7673) or +65 6337 6628, or
Email us here