Working Capital

Loan Insurance Scheme

Obtain short-term trade financing with insurance subsidies from the government

Grow your business with DBS and the government. The Loan Insurance Scheme (LIS) helps local businesses obtain short-term trade loans, trade advances and other trade-related financial assistance from participating financial institutions. Under the scheme, the bank bears 25% of the risk; with private insurers and the government assuming the remaining 75%. And because this is a government-assisted scheme, SPRING Singapore and International Enterprise Singapore (IE Singapore) will subsidise 50% of the cost of your insurance premium.

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Why choose DBS Loan Insurance Scheme?

  • Ensure your needs are met with financing terms that have been tailored  around your trade cycle
  • Benefit from the knowledge and expertise of DBS. We are the leading financial institution to participate in the scheme
  • Obtain your trade facility easily with DBS. We work with a wide panel of insurers including IE Singapore to help you obtain the facility

Product Details


Loan types

Maximum financing amount

Inventory/stock financing

100% of purchase price

Structured pre-delivery working capital

100% of Letter of Credit or Letter of Confirmed Sales Order

Accounts Receivable Purchasing

100% of invoice value

Banker’s Guarantee or contractual fulfilment

100% of contract value

 

Kindly note that the interest rate, repayment periods, and collateral required depend on your risk profile. The maximum repayment period is 1 year.

 

LIS parameters

LIS4

LIS+

Maximum amount you may borrow

No limit

SGD 5 million

Risk share

Private insurer: 75%
DBS: 25%

Government: 75%
DBS: 25%

Insurance premium

Risk-based pricing

Government subsidises 50% of premium

1.5% of loan amount


For overseas trade facilities:

    • Your business must be Singapore-based
    • Your business must have at least three of the following strategic business functions in Singapore:
      • Banking & financial
      • Marketing & business planning
      • Procurement
      • Logistics
      • Training & personnel management
      • Investment planning/co-ordination
      • R&D and design
      • Technical support
      • Manufacturing

  • The annual turnover for your business and its majority-owned subsidiaries must not exceed SGD 300 million if you are a non-trading company, and SGD 500 million if you are a trading company (where more than 50% of turnover comes from buying and selling goods)

 

For domestic trade facilities:

  • Your business must have at least 30% local shareholding (Singaporean or Permanent Resident)
  • Your business’ group annual sales turnover must not exceed SGD 100 million OR the workforce must not exceed 200

FAQs

What is the maximum facility limit that can be approved under the Loan Insurance Scheme?
There is no maximum limit under LIS4, however the facility limit depends on your risk profile. The maximum limit under LIS+ is SGD5 mn.
What will my insurance premium be?
Premiums vary from case to case, depending on your risk profile.
When do I need to pay for the insurance premium?

The premium for LIS is equivalent to one-year coverage, however you only pay once you have accepted the facility.

Is the insurance premium refundable if the facility is not utilised?

No. Once the premium has been paid for, it is non-refundable even if the facility is not utilised.

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