Trade Loan
Trade Loan offers a tailored and flexible financing solution for enterprises engaged in trade. With varying loan limits and risk-sharing arrangements, it provides businesses with the capital needed to effectively manage their trade-related financial requirements.
A Introduction to the iCFO Singapore Capital Program – Trade Loan
The iCFO Singapore Capital Program (ISCP) – Trade Loan is specifically designed to address the trade financing requirements of enterprises. This comprehensive program covers a range of trade-related financial needs, ensuring that businesses have the necessary capital to facilitate their domestic and international transactions. Here are the key aspects of the ISCP Trade Loan.
Financing Options Include:
- Inventory/Stock Financing: This helps enterprises manage their inventory and stock requirements efficiently.
- Structured Pre-Delivery Working Capital: This component provides the working capital needed to support operations and growth, especially during the pre-delivery phase.
- Factoring (With Recourse)/Bill of Invoice/AR Discounting: Factoring services are available, allowing for the conversion of accounts receivable into immediate cash flow.
- Overseas Working Capital Loan: Businesses engaged in international trade can access working capital loans tailored to their overseas operations.
- Bank Guarantee (Capped at 2 Years Tenure): The ISCP Trade Loan also covers bank guarantees, providing added financial security for enterprises.
- This program is designed to support enterprises in both domestic and overseas transactions, making it a versatile solution for businesses with diverse trade financing needs.
Trade Loan details
Maximum Loan Amount
- The maximum loan amount per borrower is S$5 million.
- However, from 1 July 2022 to 31 March 2024, this limit is increased to S$10 million.
- It's important to note that borrowers are subject to an overall borrower group limit of S$20 million for the ISCP Trade Loan.
Maximum Repayment Period
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The repayment period for this loan is a maximum of 1 year.
Important Notes
- We require a due diligence process.
- We do not require personal or corporate credit assessments. We focus instead on your business's market relevance and growth prospects.
Interest Rate
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The interest rate is determined based on the participating Financial Institutions' assessment of the risks involved, ensuring that it aligns with the specific circumstances of each enterprise.
Lending Partner Risk-Share Details
- The risk-share arrangement is an essential aspect of this program. Initially, the risk share is set at 50%.
- However, from 1 April 2021 to 31 March 2024, it increases to 70%.
- Borrowers are responsible for repaying 100% of the loan amount.
- In the event of defaults, participating Financial Institutions are obliged to follow their standard commercial recovery procedure, including the realization of security, before making a claim against the Lending Partner for the unrecovered amount, in proportion to the risk-share.
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