Why should investors and businesses choose Validus?

Modified on Fri, 16 Sep 2022 at 02:17 PM

Validus offers the opportunity for investors to earn a higher rate of return against diversified risks. We aim to create a strong social impact in a safe jurisdiction like Singapore.


 

Here are some reasons why SMEs come to us:

  1. Banks require collateral, especially for large loans.
    Many SMEs do not have significant assets which they can pledge as collateral, but are very cash flow positive, in particular those operating in service sectors with no inventory to commit. Unfortunately for these companies, if they've already reached the maximum limit on their bank facilities with no further assets to pledge, securing funding can be a difficult task. Without collateral, and with less business history than large corporates, banks often struggle to underwrite small businesses and offer them adequate lines of credit. Our access to alternative data allows us to better address the needs of our  SMEs by underwriting them on a cashflow basis.
  2. Competitive borrowing rates
    SMEs may also receive more competitive lending rates from players like ourselves, as compared to some alternative non-banking financial intermediaries prevalent in the market, including money-lenders and spending on personal lines of credit. We understand the financial needs of growing businesses and specially cater to and support them through credit cycles via the platform. SMEs who leverage growth financing from Validus see an average of 20% year-on-year growth in revenue. 
  3. Fast Turn Around for loan disbursal
    SMEs may get in touch with us by applying through a form on our website or self-registering online on our platform within minutes. The entire application process can be completed online, with flexible, pay-as-you-need finance when their business requires it. For small, growing businesses, speed is essential, and incumbent financial institutions often lack this capability, as well as the bespoke products which SMEs require. Once their application has been approved and the documents verified by our credit team, their financing request will be crowdfunded by our lenders and the funds will be disbursed to their nominated account within 24 hours.
  4. Borrower’s eligibility to onboard with Validus
    We only finance ACRA-registered companies that have been in operations for at least 6 months for Working Capital Financing and 2 years for Invoice and Purchase Order Financing. The loan approval outcome will depend on the assessment of our credit and risk teams.

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