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
The repayment period for this loan is a maximum of 1 year.
- 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.
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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