Liquidity Management

Entrustment Loans

Realise inter-company lending and improve your cash utilisation through the bank

Facilitate indirect financing between sister companies and subsidiaries in China with a DBS Entrustment Loan. We help you realise inter-company lending by acting as an entrusted agent on a bilateral or multi-party Entrustment Loan.

 

Why choose DBS Entrustment Loans?

  • Improve your management and utilisation of cash by freeing up idle funds and balancing cash shortages and surplus among subsidiaries within the group
  • Reduce group costs dramatically by earning interest on subsidiaries with a cash surplus. You can also utilise their funds to obtain a loan for companies with a shortage of cash
  • Take out a loan in RMB or a range of foreign currencies. Loans can also be structured to allow for more than two participants

FAQs

Are Entrustment Loans the only way I can realise inter-company lending?

Yes. Other forms of lending between subsidiaries within the same group are not allowed under China’s regulations.

My group has more than four subsidiaries, some of which have a cash surplus while others are still newly formed. How can I provide them with funding?

We can tailor-make an Entrustment Loan structure for your group. As the trustee, we can release your freed-up capital to your designated subsidiaries to realise the financing based on the pre-signed Entrustment Loan agreement. Please note that both you and your subsidiaries must be onshore-registered companies in China.

How many participants can join an Entrustment Loan structure?

There is no limit to the number of participants.

Is there a fee for the Entrustment Loan structure?

Yes, please refer to our pricing guide.

When will I receive my Entrustment Loan?

You will receive it one working day after we have performed the transaction. We will notify you when the transaction has been completed.

 

How do I apply?

Simply call us at 400 820 8988 (or +86 400 820 8988 if you're overseas) or visit any of our Branches. You may also email us and our Relationship Manager will contact you as soon as possible.

 

Disclaimer:

The information provided in this website is for general information only and nothing contained in this website constitutes an invitation, offer or solicitation with respect to the entry into transactions mentioned in this website or subscription, purchase or sale of any products, services, securities or other financial instruments mentioned in this website or the taking of any position or the adoption of trading strategy in respect of any asset class (eg. currency, interest rate, commodity, equity etc). The information provided in this website is not provided with regard to the specific investment objectives, financial situation and the particular needs of any particular person who accesses this website.

 

The information provided on this website is subject to change without notice, its accuracy is not guaranteed, and it may be incomplete or condensed. Accordingly, no representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information in this website. We are not acting as your advisor or agent when providing the information in this website. The information in this website does not purport to identify the risks (direct or indirect) or other material considerations which may be associated with you entering into a particular transaction, subscribing for a particular service or purchasing or selling a particular security or financial instrument. Prior to entering into any proposed transaction or entering into any subscription, purchase or sale of any security or financial instrument, you should determine (after consultation with your own advisors if you deem fit), without reliance upon us or our affiliates, the economic risks and merits, as well as the legal, tax, accounting or other material characterisations and consequences of the transaction, subscription, purchase or sale, as the case may be, and that you are able to assume these risks.

 

We, and/or our affiliates, may hold, or trade, or act as market-maker, in any securities or other financial instruments mentioned in this website or related derivatives or may take positions or use trading strategies in respect of any asset class similar to or which differ from or be contrary to those mentioned in this website. We, and/or our affiliates conduct many businesses and activities that may relate to issuers of third party securities mentioned in this website and may provide broking, banking and other financial services to such issuers.

 

Anyone receiving or accessing this website must make their own assessment of the materials herein and conduct such investigations and seek such professional advice as they think fit for such purpose. The information provided on this site should not be regarded by recipients as a substitute for the exercise of their own judgment.

 

© DBS BANK LTD, 2013. All rights reserved. Any unauthorized use, duplication or disclosure is prohibited by law and will result in prosecution.

Awards
Best SME Financing/Cash (Highly Commended) 2015

Best SME Financing/Cash (Highly Commended) 2015

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