Loan Insurance Scheme
Enjoy peace of mind with the Loan Insurance Scheme (LIS) and the accompanying complementary programme LIS+, where default risk is insured. Under these schemes, risks are co-shared with 75% risk borne by the insurers*, thus lowering any default risk.
Under LIS, the sponsors (IE Singapore & SPRING Singapore) provide premium support of 50% while you pay for the remaining 50%.
Under LIS+, the sponsors will charge an insurance premium of 1.5%p.a. for the amount insured by the sponsors.
|Types of Loan Facilities||Domestic Trade Facilities||Overseas Trade Facilities|
|Inventory / Stock Financing||Yes||Yes|
|Bill or Invoice or accounts
receivable discounting with recourse
*The insurer under the LIS scheme for UOB is United Overseas Insurance Limited. Insurers for LIS+ are Standards, Productivity and Innovation Board (SPRING) Singapore & International Enterprise (IE) Singapore
- For domestic trade facilities
If your company's goods are sold domestically within Singapore, it will need to fulfil the domestic trade facilities criteria:
- Your company will need to have at least 30% local shareholding (i.e. shareholders are either Singaporeans or Singapore Permanent Residents)
- Your company fixed assets must not exceed S$15m on a group basis
- Your company group employment size must not exceed 200 workers if it falls under the service industry
- For overseas trade facilities
If your company's goods are exported and sold overseas (i.e. for non-domestic consumption), it will need to fulfil the overseas trade facilities criteria:
- Your company must be Singapore-based (i.e. registered with Accounting and Corporate Regulatory Authority); and
- Your company must have at least three strategic business functions in Singapore. Strategic business functions are defined as:
- Banking and financial;
- Marketing and business planning;
- Training and personnel management;
- Investment planning/coordination;
- Technical support and manufacturing
- Your company's group turnover must not exceed S$500m for Trading Companies† / S$300m for Non-Trading Companies
†Your company will be considered a trading company if more than 50% of turnover comes from buying and selling goods
- Both domestic trade facilities and overseas trade facilities
If your company's goods are sold both domestically and overseas, it will have to meet both sets of criteria as described above.