Marine and Offshore Engineering Loan
Bridging Loan For Marine and Offshore Engineering Companies
Maximum Loan Amount
Up to S$10 million per group
A “group” refers to the Applicant Company, corporate shareholders that own more than 50% of total shareholding (all levels up), and subsidiaries where the Applicant Company holds more than 50% of the total shareholding (all levels down).
What is Bridging Loan for Marine and Offshore Engineering Companies?
The Bridging Loan for Marine & Offshore Engineering Companies by Enterprise Singapore (previously known as SPRING) serves to provide working capital for companies in the Marine and Offshore Engineering (M&OE) industry.
The financing scheme, which was developed in cooperation with industry experts, is aimed at stabilizing the M&OE sector as it endures the continued rout in oil prices amidst a major slowdown in the global economy.
The goal of the bridging loan is to assist companies in the sector with working capital for daily operations so as to ease cash flow problems. The government assisted financing scheme was made available from December 2016.
The SME business loan scheme will allow local companies in the industry to get up to S$5 million in funds, and up to S$10 million for borrower groups, with a repayment period of up to 6 years.
The aim of the SME loan is to help borrowers finance operations and to bridge short-term cash flow problems. With both financing schemes, the government bears 70% of the credit risk in the event of a loan default.
Your company must meet the following criteria:
- Registered and operating in Singapore
- At least 30% local shareholding
Other Company Types That Qualify
If the nature of your business is related to the Marine and Offshore Engineering industry, but you are unsure if your company is eligible, here is a list that will guide you.
Should your company fall into any of the following sub-categories of Marine and Offshore Engineering, you may qualify:
- Contractors to shipyards
- Offshore services providers
- Exploration & Production (E&P) companies
- Oil and gas (O&G) equipment and services companies
- Suppliers to O&G equipment and services companies
Other Financing Options
Due to the potential scale of business operations in the Marine and Offshore Engineering sector, Enterprise Singapore launched the Internationalisation Finance Scheme (IFS) to help companies in the industry to gain greater access to additional funds, tide over the slowdown in the sector, and to gear for overseas expansions.
With the IFS, you may be able to access further financing of up to S$70 million in additional funds and credit facilities through the following:
- Asset-based financing
- Structured loans
- Banker’s guarantee
- Merger and Acquisition financing