Enterprise Financing Scheme is a government risk-sharing scheme that helps SMEs to obtain unsecured working capital loans and trade facilities.
For any firms incorporated within the last 5 years, EFS will provide government risk sharing of up to 70% to participating financial institutions.
The EFS is designed to support companies across all industries throughout all stages of growth.
For some of the loans, you are granted up to 15 years maximum repayment period.
The Enterprise Financing Scheme (EFS) is a government initiative, administered by Enterprise Singapore, designed to help local businesses access financing more easily. Rather than lending directly, the government shares part of the default risk with participating banks and finance companies. That risk-sharing makes lenders more willing to extend credit, particularly to younger or smaller enterprises that might otherwise struggle to qualify. It is best thought of not as a single loan, but as a framework that sits behind several different loan types.
The EFS covers a range of needs across a business's life. The SME Working Capital Loan supports day-to-day operational cash flow. The Trade Loan finances import, export and trade-related needs. The Fixed Assets Loan funds equipment, machinery or premises over a longer tenure. There are also Project, Venture Debt and Mergers and Acquisitions loans for growth-stage requirements. Each has its own purpose, tenure and criteria, which is why matching the right one to your actual need is the first real decision.
Under the scheme, the government takes on a share of the risk if a borrower defaults — a larger share for younger enterprises — while the participating lender carries the rest. It is important to understand what this does and does not mean: you still repay the loan in full, on normal commercial terms. The risk-sharing is an arrangement between the government and the lender that makes approval more attainable; it is not a subsidy of your repayments or a grant.
Broadly, eligibility rests on being a business registered and operating in Singapore, with at least 30% local shareholding, and falling within the scheme's size criteria. You do not apply to Enterprise Singapore directly — the loans are disbursed by participating financial institutions, each of which runs its own credit assessment on top of the scheme's rules. So qualifying for EFS in principle does not guarantee approval from any given lender, and the specific caps and terms are reviewed periodically.
Fundwise helps you identify which EFS loan fits your situation and which participating lender is the strongest match, so you are not navigating the scheme, or the banks' individual criteria, on your own. See if your business qualifies.
Guiding you at every step — and back again for your next financing need. It's an ongoing cycle, not a one-off transaction.
The EFS is a government risk-sharing scheme administered by Enterprise Singapore, where the government shares part of the default risk with participating financial institutions to help SMEs access financing. It spans several loan types including working capital, fixed assets, trade, project, venture debt and mergers and acquisitions. Fundwise helps you navigate it; we are not the lender.
The government shares a portion of the loan default risk with the participating bank, a higher share for younger enterprises, which makes lenders more willing to extend financing. You still repay the loan in full; the risk-sharing is between the government and the lender, not a subsidy of your repayments.
Broadly, SMEs registered and operating in Singapore with at least 30% local shareholding and within Enterprise Singapore's size criteria. Each EFS loan type has its own specifics, and exact caps and terms are reviewed periodically, so we confirm the current ones for your case.
It depends on your need: working capital for daily operations, fixed assets for equipment or property, trade for financing trade cycles, and so on. Matching your need to the right EFS product is exactly what an advisory helps with.
No. EFS loans are provided by participating financial institutions under Enterprise Singapore's scheme. Fundwise is an independent advisory that helps you understand eligibility and apply through the right lender; we do not provide the loan ourselves.
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