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


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.



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Best SME Financing/Cash (Highly Commended) 2015

Best SME Financing/Cash (Highly Commended) 2015

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