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.
Learn more about us

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.

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

What's the eligibility criteria?

You must be a corporation or limited liability partnership registered with the Accounting and Corporate Regulatory Authority of Singapore, and have a bank account in Singapore; and preferably have at least 2 (two) years of continuous trading or profits record.

What kind of projects can I get funds for?

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

How much funding can I get?

That will depend on your requirements, credit assessment and investor take-up on the facility.

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

Minimal documentation required to apply, e.g. M&AA, Director’s NRIC and/or Passport, Proof of Residency, Last 2 years’ Financial Statements, Last 6 months’ Bank Statements. Required application documents may vary on application based on the financing request.

What's the interest rate?

It can vary from 0.75% – 3.0% 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.

Is there any minimum amount I can invest?

Yes, a minimum investment level is SGD5,000 per facility. Your total committed funds need to be at least SGD 50,000.

Is there any maximum amount I can invest?

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?

Investors on our platform can expect returns ranging from 8% to 15% p.a. (net IRR), depending on the facilities invested in. 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.

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.

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 debt collection and legal action.

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.

What happens in the case of a facility rewrite?

It’s not possible to rewrite a facility in the middle of its tenure. It is, however, possible that a facility is restructured.

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.

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