Trade Facility
Trade Facility

Trade finance helps companies to pay its local or overseas suppliers for the purchase of goods.. Companies also get more time to repay the bank, usually 60 to 150 days depending on the cash conversion cycle of the company.

This allows companies to increase revenue due to increased capacity to order goods. Since companies need not pay to their suppliers immediately, they get to enjoy improved cash flow.

How it works:

  1. You get a revolving line of credit of a predetermined limit by the bank.
  2. Inform the bank whenever you need to buy goods
  3. Bank pay directly to your supplier upon receipt of delivery order
  4. You pay the bank before credit due date (usually 60 to 150 days, depending on your cash conversion cycle)

Key Benefits

Government assisted trade facilities has a maximum limit of S$10,00,000 from 1 July 2022 – 31 March 2023.

Some banks require the company to purchase a credit insurance up to the limit of the credit line.

Interest rate varies depending on the lenders's cost of financing and financial profile of the borrower.

Typically, it ranges from 6% to 8% annually, pro-rated daily.

By leveraging on the bank to finance your purchases, it makes you a more credible purchaser.

It allows you to transact with new suppliers and expand your business into new geographical areas.

Usually banks will bundle in a foreign exchange line to enable you to hedge your purchases, if you transact in foreign currency.


Who can apply:

  • Local company, registered and physically present in Singapore
  • At least 30% Singapore or PR shareholding
  • Annual revenue of the company not more than S$100 million or not more than 200 employees

  • Documents required to apply:

  • Latest 6 months bank statement
  • Latest 2 years Audited / Unaudited financials or latest management accounts
  • Account Payables and Account Receivables aging list
  • Sample Invoice from Supplier to be financed
  • Copy of NRIC for all directors and guarantors
  • Copy of last 2 years Notice of Assessment for all directors and guarantors

  • How long does it take to approve?

  • Application for trade facilities is a longer process as compared to term loan
  • Allow for a month for the application
  • Once approved, bank will finance all your purchases within the day upon your request
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