Who is Validus?

Backed by Temasek Holdings’ Vertex Ventures, Validus is a catalyst of sustainable growth for small and medium enterprises (SMEs). Our smart online lending marketplace connects SMEs to accredited and institutional investors to easier and quicker financing at affordable rates. Founded in 2015, Validus is Singapore’s leading SME financing platform and is licensed by the Monetary Authority of Singapore.
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What currency does Validus transact in?

Validus transacts in Singapore Dollars.

How is Validus different from a bank?

Validus does not hold a banking licence and does not operate as a bank. We seek to provide support to SMEs not financed by the banks or financial institutions, as well as SMEs needing top-ups for growth related funding.

Does Validus itself lend money?

Validus primarily facilitates in bringing together investors & SMEs on its platform. In some cases, we may also have “skin in the game”, with the founders, management and/or Validus investing in some of the facilities.

Why should investors or SMEs choose Validus?

Validus offers the opportunity for investors to earn a higher rate of interest against diversified risks. We aim to create a strong social impact in a safe jurisdiction like Singapore. SMEs may also receive lower borrowing rates as compared to some non-banking financial intermediaries prevalent in the market. We understand the financial needs of a growing business and specially caters to and supports them through the platform. Additionally the SMEs on our platform are growing at an average of 20% y.o.y in terms of turnover/ revenue.

Who can access the platform?

Only registered SMEs and investors have access to the platform.

How secure is privacy and data protection?

www.validus.sg is encrypted using an absolute cipher suite. The website uses TLS 1.2. The website is encrypted and authenticated using AES_128_GCM and uses RSA as the key exchange mechanism also the website having EV SSL Certificate.

Is Validus regulated?

Validus holds a Capital Markets Services Licence under the Securities and Futures Act of Singapore, issued by the Monetary Authority of Singapore.

Questions?

Our team is here to help. If you have further questions, require more information or want to speak with one of our team members, please get in touch.

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About Us

Validus is a catalyst of sustainable growth for SMEs in Singapore. Our smart online lending marketplace connects growing businesses to accredited investors and institutions for financing.

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What's the eligibility criteria?

To qualify, your business must be registered on ACRA, with an operating history of at least 2 years, and a minimum annual revenue of at least SGD 500k.

What kind of projects can I get funds for?

For invoice financing, purchase order (PO) financing or working capital financing.

How much can I borrow?

You may borrow up to SGD 500,000 on each loan application, subject to assessment against Validus Capital’s lending criteria, standard disclaimers and terms and conditions.

What documents do I need to provide to make a funding application?

Minimal documentation required to apply*

  • Bank Statements (past 6 months)
  • Financial Statement / Management Account (past 1 year)
  • Credit Bureau Statement (past 1 month) of Personal Guarantor(s)
  • Notice of Assessment (past 1 year) of Personal Guarantor(s)

*Required application documents may vary on application based on the financing request.

What's the interest rate?

It can vary from 0.67% – 2.50% per month, depending on the SME profile and credit analysis.

What's the facility application process?

The SME will need to register on the platform. Once registered, the SME may submit a funding application on the platform, which will then reviewed by Validus. Where suitable, we will then post a funding request on the platform for registered investors. If the funding request is subscribed and funded to a certain threshold, the facility is then executed and funds will be transferred.

How soon do facilities get approved?

Typically within 48 hours  of our team getting all required documents and information, and ascertaining that the funding application meets the credit risk criteria.

How soon can I receive funds?

Typically within 48 hours of your financing request being successfully funded on our platform, and you have signed off on the required transaction documents.

What's the repayment period?

  • Working Capital Financing – Repayment period is principal + interest every month for 6, 9 or 12 months.
  • Invoice Financing – Principal + Interest in a bullet repayment at the end of 30, 60 or 90 days – depending on the facility tenure.
  • Purchase Order (PO) Financing – Principal + Interest in a bullet repayment at the end of 30, 60 or 90 days – depending on the facility tenure.

What's the repayment mechanism?

Bank transfers or GIRO (for working capital loans only)

Will my business info and financials be made public?

A summary of your business, risks, strengths & other factors associated with the funding request, and other details about your business will be made available to our risk assessment partners, insurance company, and credit bureaus for receiving your credit reports, as well as registered investors on the platform.

What if I default on a payment?

Late interests will apply and we may engage debt collectors and legal proceedings if necessary. Nonetheless, we really do hope it does not come to this!

I already have a credit rating. How does this affect me?

Your credit ratings will decide the rate of interest. If you have a high (good) credit rating, the rate of interest may be lower. Similarly, if you have a low (bad) credit rating, the rate of interest may be higher.

Is a security required?

We take personal guarantees from your directors.

In certain cases, we may also require a security deed – charge over receivables and accounts.

Are you approved on GeBIZ?

Yes, Validus Capital is registered on GeBIZ (the Singapore Government’s e-procurement portal) as an approved financing partner for local businesses.

Questions?

Our team is here to support you. We help small and medium business owners in Singapore obtain zero-collateral, fast and flexible financing to grow their business. Interested? Let’s chat.

Contact us

About Us

Validus is a catalyst of sustainable growth for SMEs in Singapore. Our smart online lending marketplace connects growing businesses to accredited investors and institutions for financing.

Learn More

Who can invest with Validus?

You may register to be an investor with Validus if you are an accredited investor as an individual or entity. You do not need to be a Singapore resident but we would need your documents for a KYC check done by Vistra – our escrow partners. Please contact our Investor Relations team (ir@validus.sg) for more information.

What's the investing/lending process?

Register as an investor on Validus. Upon confirmation of your registration by Validus, commit and send funds that you wish to invest to the designated escrow account. See it pop up as ‘Available Funds’ on your investor dashboard on Validus. Use those ‘Available Funds’ to participate in live facilities after going through your own risk assessment.

What fees do investors pay to Validus?

We charge a fee on all incomes, interest, charges & penalties that are received by an investor through the platform. This is payable each month to Validus and will be deducted before the amount due to you in accordance with the transaction document is reflected on your dashboard.

What is the minimum investment amount?

A minimum portfolio size of SGD $50,000 is required overall.

Per facility there is no minimum imposed when manually investing. A minimum investment of SGD $1,000 per facility is required via Auto Invest.

Loan tenures are for a period between

  • •  30 to 120 days for Invoice Financing and Purchase Order Financing
  • •  6, 9 or 12 months for Working Capital Financing

What is the maximum investment amount?

None. However, we request you to exercise caution and if you choose to, you may diversify your risk by spreading your investments across various facilities. This “fractionalization ” may offer better rates of return in the long term. This is what P2P or P2B lending trends have shown over the last 5 years.

What's the minimum or maximum investment term?

Loan tenures are for typically for a period between

  • •  30 to 120 days for Invoice Financing and Purchase Order Financing, or
  • •  3 to 12 months for Working Capital Financing

These may vary according to facilities and SMEs involved.

What interest rate will I receive?

Our platform generated a net rate of return from 4% to 24% p.a., depending on portfolio diversification and the facilities invested in.

Click here for General Performance Information Disclosure

Is my money safe with Validus?

Validus does NOT use your money for its operations. A separate independent escrow account managed by escrow provider Vistra, holds investors’ monies. All SME repayments are paid into that account, and disbursals are done from there as well.

Is my money going to receive guaranteed returns?

No, as these are high risk, high yield investments. You have the discretion to choose how you want to invest your money through the Validus platform. Investors should consider carefully the risks of investing and may wish to seek separate independent advice before making a commitment to invest.

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What are the tax consequences of investing?

We are unable to advise you on your tax matters.

Will I know who the SMEs are?

Yes, the SME’s name and a basic business profile of its business will be made available to you on the platform. However, you are legally bound not to contact SMEs directly. Any questions you have should be directed to the Validus Team.

How do Validus assess the credit of the SMEs?

The compliance and risk analysis team of Validus uses credit bureau reports and ratings as well as 3rd party bureaus to gather data. However, you are reminded to perform your own assessment of SMEs.

What rating agency does Validus work with?

Validus works with SCCB (part of Dun & Bradstreet) and DP-Experian and the Credit Research Initiative at the National University of Singapore.

What happens if an SME makes late repayments?

We will notify you and the reason for any delayed payments, and the SME borrower will be liable for late charges and additional interest applied to the outstanding amount due for the duration of delay.

What happens if an SME defaults?

Validus will work with the SME Borrower to mitigate any payment issues before a default occurs. In the rare case a default occurs, we will, based on advice, proceed with the most appropriate course of action which may include facility restructuring, debt collection and/or legal action.

 

Click here for General Performance Information Disclosure

How do Validus prevent SME fraud?

We conduct thorough checks on the SME and its directors but please note that complete prevention of fraud is not possible.

Can I get access to my invested money before the end of a facility term?

No, since the SME has agreed on a certain repayment schedule, we will not call back the facility before the end of such repayment term.

Business Cessation Plan

In the event of any voluntary or involuntary cessation of business at VALIDUS’ end, a proper business cessation plan to protect investors are as stated below:

1. Communication to all investors
All investors registered on our platform will be updated on VALIDUS’ business cessation situation prior to its occurrence. Initial communication will be done through circulation of an official email, where further queries following that can be redirected to our IR team: ir@validus.sg

Any communication after the cessation will be directed to/handled by Vistra Corporate Trust (Singapore) Ltd (“VISTRA”).

2. Handling of investors’ monies and future repayments
All funds invested through VALIDUS’ platform is kept secure with our escrow agent, VISTRA. Investors whose funds are not being invested in any loan transactions will be able to proceed with a full withdrawal. For investors whose portion of funds are being invested in outstanding loan transactions, only withdrawal on the remaining funds will be available.

With regards to funds being invested in outstanding loan transactions, VISTRA will serve as the future point of contact and investors may liaise with them regarding the future principal and interest repayments due for each outstanding loan transaction. The preceding statement applies to defaulted loans as well, recovery options/procedures will be arranged by VISTRA.

3. Investor agreements and documents
All physical or electronic documents pertaining to investor KYC, AI status, loan agreements, and other relevant information will be placed in the custody of VISTRA where investors will be granted full access to documents they were authorized to previously.

Questions?

Whether you are an accredited or institutional investor, our Investor Relations team can help. Get in touch with us to learn more about investing in alternative lending.

Contact us

About Us

Validus is a catalyst of sustainable growth for SMEs in Singapore. Our smart online lending marketplace connects growing businesses to accredited investors and institutions for financing.

Learn More