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Call for Proposals for Loan Insurance Scheme Tranche 5
To continue facilitating SMEs’ access to short-term working capital and trade financing facilities, SPRING Singapore is calling for proposals from interested parties in the trade credit insurance industry to provide loan insurance capacity for the fifth tranche of the Loan Insurance Scheme (LIS), to be implemented by 1 April 2016.

The LIS involves commercial insurers underwriting loans offered by Participating Financial Institutions to Singapore-based companies with SPRING and IE supporting part of the insurance premium.

Briefing Session
Interested applicants are required to attend a public briefing session on 15 September 2015. Registration for the briefing session closes on 14 September 2015, 5pm. To register, please email your Name, Company Name, Designation and Contact Details to liz_ng@spring.gov.sg and nuraisha_mohamad_nasir@spring.gov.sg.

Proposal Submission
All proposals are to be submitted to SPRING Singapore by 12 November 2015.

For more information, please download the LIS 5 Call for Proposal Specification Document.

Loan Insurance Scheme (LIS) and LIS+

The 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.

 

LIS & LIS+ at a Glance

  LIS LIS+
Scope Secured working capital (e.g. against receivables) Secured working capital (e.g. against receivables)
Maximum Loan Quantum No maximum quantum S$5 million per borrower group
Premium Rate and Interest Rate (and loan tenure To be determined by the insurer based on the risk profile of borrower (The government provides premium support of 50%) 1.5% p.a. (on the amount insured by the 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. 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.
 

Eligibility

Facilities for Sales to Local Customers

  • Registered and operating in Singapore
  • 30% local shareholding
  • Group annual sales ≤ S$100m or  group employment size ≤ 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

  • Based in Singapore with at least 3 strategic business funcitons in Singapore
  • Turnover of applicant company and its subsidiaries < S$300m for Non-Trading Companies and < S$500 million for Trading Companies

Companies applying for both types of facilities have to meet both set of criteria.

 

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

Participating Financial Institutions (PFI)

Banks Contact
Bibby Financial Services (Singapore) Pte Ltd 6922 5030
CIMB Bank Berhad 6438 7888
DBS Bank Ltd 1800 222 2200
Hong Leong Finance Ltd 1800 3388 338
Malayan Banking Berhad 1800 629 2265
Oversea-Chinese Banking Corporation Ltd 6538 1111
RHB Bank Berhad 1800 323 0100
Standard Chartered Bank 1800 743 3000
The Bank of East Asia Ltd 6602 7848 / 6602 7849
The Hongkong and Shanghai Banking Corporation Ltd 1800 216 9008
United Overseas Bank Ltd 1800 2266 121

 

Pre-application

  1. Check that your business qualifies for the loan.
  2. Consult your banker or one of the LIS Participating Financial Institutions for advice and assistance.
  3. Meet with your banker or financial institution with these supporting documents:
  • a copy of your business profile from ACRA
  • audited accounts or certified financial statements
  • bank statements
  • personal income tax assessment of owners and directors

 

Application

  • Obtain an Application Form from your banker or financial institution and compile the required supporting documents for submission.
  • Processing of applications may take 3 weeks or more, depending on the size of the loan and other factors.
 

Post-application

  • Upon successful application, pay 50% of the insurance premium.
  • Receive the funds from the bank or financial institution.
  • Keep proper records of repayments. Repayments start 1 month after disbursement of the loan.
  • Make repayments on time.

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Last Updated on : 04 Sep 2015

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