Within 7 business days of the Validus Team getting all the desired information and ascertaining that the Funding Application meets the Credit Risk criteria, the Funding Request is then uploaded on the Platform for participation by registered Investors. Normally, the Platform waits for 7 business days for investor participation. The time taken to appraise Funding Applications is shorter for recurring requests by borrowers who pay on time.
You must either be a Pte. Ltd. Company or a Limited Liability Partnership registered in Singapore; and preferably have at least 2 (two) years continuous trading or profits record.
The list of documents varies with each Funding application. For a complete list, click here!
After completing your registration as a Borrower, you may make a Funding Application.
SGD 100,000 and upwards, depending on your requirements and credit assessment.
For Accounts Receivable financing or Working Capital (inventory management, expansion or growth related reasons).
*We are currently only offering Accounts Receivable financing for disclosed or joint account payments by Buyers.
Accounts Receivable Financing is a financing arrangement that allows Borrowers to use their accounts receivable as added support to their Funding Application(s). This method of financing has a shorter tenure of 30, 60 or 90 days.
Working Capital Financing is a facility extended to the Borrowers for the purposes of financing the everyday operations of the Borrower, This method of financing has a longer tenure of 6, 9 or 12 months.
Start-ups or Accounts Receivable financing less than 30 days or Purchase of Capital Assets. If the company is in distress or needs funds for survival, we are not a platform to be able to fund the same.
Investors prefer to fund:-
It would vary from 0.75% - 3.0% per month, depending on the risk profile and credit analysis.
GIRO (i.e.; General Interbank Recurring Order) or post-dated cheques
Repayment by the Buyer to Validus directly, or to a joint account controlled by Validus
Validus is well capitalized, with a proper risk governance structure in place. Prominent individuals are part of the Board and Advisory Committee. In the highly unlikely event of Validus ceasing operations, all agreements already entered into shall hold good, and the Escrow managed independent corporate account with Vistra Singapore is in place to continue to receive payments from Borrowers for the duration of the loan. However, we are sure Validus will be around for a long, long, long time :)
Nothing. Registration & uploading Funding Applications are FREE!
A summary of your business and risks, including strengths & other factors associated with the Funding Request, and other details about your business will be made available to risk assessment partners, Insurance company, and credit bureaus for receiving your credit reports, and registered Investors on the Platform. A detailed disclosure of the PDPA (Personal Data Protection Act) can be found here.
If such an unfortunate event should occur, we shall be bound to proceed with late charges, penalties as well as legal & other measures as per Facility documents entered into. We really do hope, it does not come to this!
Yes, the rates may be subject to change, so kindly check your Facility Agreement for the final amounts.
It’s not possible to increase the amount of a Facility in the middle of its tenure. However, depending on your creditworthiness, we may offer to purchase more invoices on a disclosed basis.
We may offer a new facility depending on your repayment behavior and credit risk profile.
Your credit ratings will decide the rate of interest. If you have a high (good) credit rating- the rate of interest will be low & vice versa.
We take personal guarantees for each facility.
In certain cases, we may also need to create a “charge on all monies” depending on the facility and amount offered to you.
Validus does NOT use your money for its operations. A separate independent corporate account in a different bank managed by escrow provider Vistra, is where all investor monies reside. All borrower repayments are paid into that account, and disbursals are done from the same.
No, these are highrisk, highyield investments, and you have the discretion to choose how you want to invest your money through the Validus platform. Please click here for further information on investment risks.
You may also withdraw the unpledged amounts from your investor account at any point in time, and the same shall be credited back to you in 2-3 working days.
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 resident in Singapore but we would need your documents for a KYC check done by Vistra – our escrow partners.
And yes, our minimum for investors is currently a SGD 50,000 commitment to invest at their discretion, and we would need to onboard only accredited investors.
Accredited investor means:
1. an individual —
(a) whose net personal assets exceed in value the minimum amount of $2 million (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount, and in determining whether an individual’s net personal assets exceeds the minimum amount, the estimated fair market value of an individual’s primary residence less any outstanding amounts in respect of any credit facility granted to the individual or any other person that is secured by that residence, shall not account for more than $1 million (or its equivalent in a foreign currency) of the minimum amount; or
(b) whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe in place of the first amount;
2. a corporation with net assets exceeding $10 million in value (or its equivalent in a foreign currency) or such other amount as the Authority may prescribe, in place of the first amount, as determined by —
(a) the most recent audited balance-sheet of the corporation; or
(b) where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months;
(c) the trustee of such trust as the Authority may prescribe, when acting in that capacity; or
(d) such other person as the Authority may prescribe;
Borrowers may not be Investors.
Register as an Investor on Validus. Upon confirmation of your registration by Vistra (escrow agent), commit and send funds that you wish to invest to the escrow designated independent corporate 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 profiling and/or checking out our note on risk assessment using various data from Borrowers and other bureaus.
Yes, a minimum investment level is SGD5,000 per Facility. However, your total committed funds must be greater than SGD 50,000.
None. However, we request you to exercise caution and if you choose to, then you could diversify your risk by spreading your investments across various Facilities. This "fractionalization " may (possibly!) tend to offer better rates of return in the longer term. This is what P2P or P2B lending trends have shown over the last 5 years.
30 days for Account Receivables Financing and a maximum of 1 year for Working Capital Financing. Some borrowers may choose to prepay facilities taken.
Depending on the Facility type, we expect returns ranging from 9% to 28% p.a. These rates could be even higher based on the risk adjusted pricing of the Facility. We suggest that you factor in some amount of delay or default risks to arrive at a risk adjusted return for your portfolio.
Please check in your individual jurisdiction.
We charge 20% of all incomes, interest, charges & penalties that are received by an Investor into the independent corporate account. This is payable each month to Validus and will be deducted before the remaining of the monthly instalment due to you pursuant to the Facility Document is reflected on your dashboard.
The risk analysis team of Validus uses credit bureau reports and ratings, and 3rd party bureaus to gather data. However, you should perform your own assessment of Borrowers.
Fractionalization in the P2P lending space means the breaking of an Investor’s portfolio into smaller slices to help them diversify their risk over a larger eco-system of borrowers.
SCCB (part of Dun & Bradstreet) and DP-Experian and the Credit Research Initiative at the National University of Singapore.
Please click here for further information on investment risks.
There are late charges & penalties levied. Depending on a case to case basis, these may be waived partially or fully at the discretion of Validus.
Debt Collection and Legal action could be resorted to.
Borrowers are Singapore domiciled Companies or LLP's, so in the event of liquidation, the usual legal process will follow.
We check original passports/ NRIC for the identity checks of the Director/s involved and Personal Guarantors.
We run a number of checks on our platform to prevent different types of fraud viz. authentication of ID documents such as Passport or NRIC, Company documents such as ACRA BizFfile.
However, not all fraud may be prevented entirely.
In case of the unfortunate circumstance of Validus ceasing operations, there will be no further loan offerings. However, obligations of Borrowers under existing Facilities will still continue and be paid to the Vistra managed “Independent Corporate Account” on behalf of the investors, who will receive their funds back as the borrowers pay back.
It’s not possible to rewrite a loan in the middle of its tenure. It is possible that a loan is restructured.
No, since the borrower has agreed on a certain repayment schedule, we cannot call back the loan in the middle. If the borrower decides to pre-pay, then access may be possible to the monies prior to the facility term.
www.validus.sg is an e-commerce online lending platform that brings together borrowers from Singapore in front a global investing audience. In short, Validus acts as an efficient aggregator for Singaporean SME funding requirements.
Validus primarily facilitates in bringing together Investors & Borrowers on its Platform. However in most cases, we also have “skin in the game”, with the promoters and/or Validus investing partly in loan facilities.
Validus is only an administrator of the Platform. We assist in matching Investors and Borrowers and facilitate the transactions between them. In this role we provide a set of functions to enable a smooth and seamless experience for both parties:
Validus offers the opportunity for investors to earn a higher rate of interest against diversified risks. Validus aims to create a strong social impact in a safe jurisdiction like Singapore. Borrowers may achieve lower borrowing rates in comparison to some non-banking financial intermediaries prevalent in the market. Validus specifically also caters to and understands the financial needs of a growing business and supports those through the Platform. The borrowers on Validus are growing at an average of 20% y.o.y in terms of Turnover/ Revenue.
Validus seeks to provide support to those not served by the banks or financial institutions, as well as companies needing top-ups for growth related funding.
Validus acts as a facilitator in bringing together the Investor & Borrower on a single platform, where contracts are executed against a fixed rate of interest and repayment tenure between them. Depending on the type of facility one is opting for, a registered Borrower may apply to Validus to place a Funding Request with a target rate of interest, on the Platform. The Funding Request is valid for a brief period (normally 7 business days) and is visible to all the registered Investors on the Validus Platform with a minimum balance requirement.
The Borrower needs to register on the Platform. Once registered, the Borrower submits a Funding Application on the Platform with a proposed interest rate & tenure. If the Funding Application is approved by Validus, we would then post a Funding Request on the Platform for registered Investors to view. If the Funding Request is subscribed, the contract is then executed with the detailed terms & conditions.
Register as an Investor on Validus. Upon confirmation of your registration, commit funds that you wish to invest to the designated independent corporate 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 profiling and/or checking out our note on risk assessment using various data from Borrowers and other bureaus.
A Facility is a single funding offering that is up for subscription by registered investors. A Facility may relate either to a working capital loan or accounts receivable financing that Validus features on the Platform marketplace
Only Singapore registered Companies/ LLPs may join as borrowers. To join as an investor, please register and understand the risks associated, and send adequate funds to the independent corporate account.
Only a registered Borrower can borrow and only a registered Investor can invest.
Validus only transacts in Singapore Dollars, whether it is for borrowing or lending
We may be introducing a new product shortly, for investing in USD. More details to follow in December 2016.
There is a risk of 100% loss of capital and interest, in case a borrower defaults and debt recovery and legal proceedings are not successful. However, in most cases that go "bad", there are chances of recovery either from the company taking the loan or the personal guarantor who has to be a Singaporean/PR.Please also click here to view a full list of our Disclaimers.
Validus looks internally at three aspects. Financial data, behavioral data, and demographic data. Along with a strong risk assessment team which has decades of experience working with large banks in Singapore, as well as a credit bureau partner in D&B and DP-Experian, Validus aims to capture most of the risks in the pricing model. However, these are high risk high yield products, suitable for the savvy investor
Investors may not contact borrowers directly.
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..
No. You can either be a borrower or an investor.
Fundraising from the public through lending-based crowdfunding, or P2P lending, is regulated by MAS under the Securities and Futures Act (Cap. 289) (the “SFA”) and the Financial Advisers Act (Cap. 110) (the “FAA”).
Currently, Validus Capital falls under 3 exemptions for Prospectus Requirement, which are the Small Offers Exemption, the Private Placement Exemption, and the Accredited Investors exemption. We are however preparing to apply for the Capital Markets License for “Dealing Intermediaries”.
Validus Capital Pte Ltd does not fall within the ambit of the Moneylenders Act (Cap.188) as our platform caters to corporate(PTE LTD or LLP) borrowers. Investors will fall within the definition of an excluded moneylender upon compliance with section 2(e)(iii)(A) of the Moneylenders Act (Cap.188) ("MLA"), and an excluded moneylender does not fall under the ambit of the MLA and therefore does not require a moneylending license.
UEN No. 201530032R
11 Collyer Quay | #07-01 The Arcade | Singapore 049317
DISCLAIMER: This publication shall not be shown, re-transmitted, re-distributed, disclosed or copied, or relied upon, in whole or in part, by any person for whatever purpose without the prior consent of Validus Capital Pte. Ltd. (“Validus”). Distribution of this publication or information within to any person other than the person whom the information was originally delivered and to such persons’ advisors is unauthorised.
Validus is not licensed nor regulated by the Monetary Authority of Singapore and does not perform any regulated activities under the applicable laws of Singapore.
This publication may refer to certain features of an investment/financing but does not purport to contain a complete description of all material terms or of the terms which may differ from those summarised in this publication. Accordingly this publication is qualified in its entirety by the more detailed documentation relating to the investment/financing. Information in this publication is based upon certain assumptions and analysis of information available as at the date of the publication and reflects prevailing conditions and Validus’ views as of such date, all of which are subject to change at any time without notice. Although reasonable care has been taken to ensure the accuracy of information contained in this publication, Validus makes no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for the accuracy or completeness of the information.
This publication has not been registered with any regulatory authority including the Monetary Authority of Singapore. Returns on the investment are not guaranteed including the possible loss of the entire principal amount invested. Any grant of financing remains subject to Validus’ internal approval and legal documentation. Please note that the graphs, charts, formulae or other devices set out or referred to in this publication cannot, in and of itself, be used to determine and will not assist any person in deciding whether and/or when to make an investment or procure a financing. Investors should note that the past performance of any investment, company, entity or Validus mentioned in this publication, and any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance of any investment, company, entity or Validus or the economy, stock market, bond market or economic trends of the markets. Nothing in this publication shall constitute a representation or give rise to any implication that there has not been or that there will not be any change affecting the investment/financing. Employees of Validus shall not be held liable for any decision or action taken based on the views expressed or information contained in this publication.
Investors should consider carefully the risks of investing and may wish to seek advice from a financial adviser before making a commitment to invest. Should you choose not to seek advice from a financial adviser, you should consider carefully whether the investment is suitable for you. Similarly, companies seeking financing should seek advice and carefully consider if the financing is suitable for you.
The above information is strictly for general information only and is not an offer, solicitation, advice or recommendation to buy or sell any investment or invest in any company, or to grant or procure any financing. This publication should not be construed as accounting, legal, regulatory, tax, financial or other advice. Investments are not obligations of, deposits in, or guaranteed or insured by Validus, or any of its subsidiary, associate, affiliate or distributors.
By accessing this publication, you hereby acknowledge and agree to the above disclaimers and conditions.