LIS insures your loans against default risks. The insurance premiums will be co-shared between the government and your enterprise. LIS+ is a complementary programme to LIS, where the government will co-share in the risk of new loans which are beyond the capacity of current LIS insurers for a one-year period.
Summary of LIS and LIS+
| Use of Funds |
Secured working capital (e.g. against receivables) |
| Maximum Loan Quantum |
LIS
No maximum loan quantum
LIS+
S$5 million per borrower group |
| Eligible Companies |
All companies |
| Premium Rate and Interest Rate (and loan tenure) |
LIS
To be determined by the insurer based on the risk profile of borrower (Singapore Government provides premium support of 50%).
LIS+
1.5% p.a. (on amount insured by government)
The interest rate charged throughout the tenure of loans will be either fixed or
floating, depending on the option which best suits your business needs. |
| * PFI: Participating Financial Institution |
Loan Facilities
LIS supports both domestic trade and overseas trade facilities.
| Types of Loan Facilities |
Domestic Trade Facilities
|
Overseas Trade Facilities
|
| Inventory/Stock Financing |
Yes
|
Yes
|
| Structured Pre-delivery Working Capital (including Revolving Working Capital) |
Yes
|
Yes
|
| Factoring/Bill or Invoice or accounts receivable discounting with recourse |
Yes
|
Yes
|
| Overseas Working Capital Loans Support Facilities via Standby Letter of Credit or credit facilities made by Lender through its inter-branch cover letter (Only for above listed facilities) |
No
|
Yes
|
| Banker's Guarantee (Tied to Project Financing) |
Yes
|
Yes
|
You may apply for the LIS Scheme if your company meets these criteria :
Facilities for Domestic trade
- at least 30% local shareholding;
- company's group annual sales of not more than $100 million or company's group employment size not more than 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)
Facilities for Sales to Overseas Customers
For sales to overseas customers :
- company must be Singapore-based
- at least 3 strategic business functions in Singapore
- turnover of Applicant Company and its subsidiaries must not exceed $300 million for Non-Trading Companies and $500 million for Trading Companies
For companies applying for both domestic and export facilities, you will have to meet both set of criteria as described above.
|
Banks
|
Contact Numbers
|
| DBS Bank Limited |
1800 222 2200 |
| The Hongkong and Shanghai Banking Corporation Limited |
6216 9000 |
| Hong Leong Finance Limited |
6415 9640 |
| Maybank |
6292 4237 |
| Oversea-Chinese Banking Corporation Limited |
6538 1111 |
| Standard Chartered Bank |
1800 743 3000 |
| The Bank of East Asia, Limited |
6602 7702 |
Before you apply
- Ensure that your business qualifies for the loan.
- Consult your banker or one of the LIS Participating Financial Institutions. They will be able to give you professional advice and also assist your application.
- Prepare the supporting documents if your bank requires them :
- a copy of your business profile from ACRA
- audited accounts or certified financial statements
- bank statements
- personal income tax assessment of owners and directors
- Meet with your banker or financial institution. Bring the supporting documents for the meeting.
Applying for LIS
- Obtain an Application Form from your banker or financial institution. Find out from the lender what supporting documents you need to attach.
- Submit the Application Form with the supporting documents.
- Wait 3 weeks for the bank or financial institution to reply. Processing of applications may be longer depending on the size of the loan and other factors.
Upon successful application
- Pay 50% of the insurance premium.
- Receive funds from the bank or financial institution.
- Keep proper records of repayments. Repayments start 1 month after disbursement of the loan.
- Ensure you make repayments on time.