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Loan Insurance Scheme (LIS)

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Published by Enterprise Singapore
on 03 Jun 2015

The LIS helps companies secure short-term trade financing by insuring banks against the insolvency risks of borrowers. 

About the Scheme

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

Eligibility Criteria

Companies applying for the LIS should meet the following criteria:

  • Registered and operating in Singapore
  • At least 30% local shareholding
  • Applicant’s group annual sales turnover should be up to S$100 million or applicant’s group employment size must not exceed 200 workers1

1Group is defined to include 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.

For More Info

Loan Insurance Scheme

Enterprise Singapore
230 Victoria Street #10-00
Bugis Junction Office Tower
Singapore 188024

1 Fusionopolis Walk
#01-02 South Tower, Solaris,
Singapore 138628

Email : enquiry@enterprisesg.gov.sg
Hotline : (65) 6898 1800

 LIS

Last Modified Date: 03 Sep 2019