Supplier Trade Financing
For businesses involved in international trade, trade finance solutions play a crucial role in achieving success in the global marketplace. These solutions contribute to success by mitigating risk, enhancing working capital, and offering better control over funds and documentation. Trade finance increases oversight, streamlines the import and export process, and fosters efficient trade flows.
Eligibility
- Minimum annual revenue at least $200K per year
- Operational business incorporated for at least 6 months (preferably 1 year)
- Minumum 30% shareholdings local or PR
Frequently Asked Questions
What is trade financing?
Trade financing is a dynamic credit facility employed for import financing or purchase financing. Businesses can leverage their trade financing credit lines to fund imports or purchases with credit terms provided by banks. This strategy enhances working capital and improves the cash flow trade cycle.
What is the interest rate for trade financing facilities?
The interest rate for trade financing typically falls within the range of 6% to 8% per annum. Banks commonly offer credit terms spanning 90 to 120 days, with interest rates prorated based on the duration of the credit terms granted.
Do you need to pledge collateral for trade financing facilities?
For trade financing facilities, most banks typically prefer collateral to be pledged. Preferred securities for collateral may include properties, fixed deposits, or keyman insurance policies. However, it’s worth noting that trade financing facilities can also be extended on an unsecured basis with the provision of credit insurance.
Trade Financing For Singapore SMEs
Maximum Loan Quantum
Maximum Repayment Period
Interest Rate
Maximum Loan Quantum
Up to $1M
Maximum Repayment Period
3 – 5 months tenure
Interest Rate
0.55 – 0.625% per month