Alternative Investment: Investing in P2P Lending to SMEs
Gain access to Singapore’s largest SME financing platform
Capitalise on growing demand and unique market opportunities in direct lending to SMEs. As you invest on our P2P platform, you're also driving financial inclusion for SMEs.
✓ Exclusive to accredited investors - HNWIs, Institutions
✓ Regulated by the Monetary Authority of Singapore (CMS Licence)
High-yield returns: Projected returns of 8 – 12% p.a.*
Low volatility investing and diversification with Auto Invest
No lock-in period, zero onboarding fee
Award-winning Fintech transforming SME Financing
Founded in 2015, Validus has grown to become Singapore’s largest SME financing platform, providing an attractive alternative investment asset class for accredited investors in the region.
in SME loans disbursed to date
return borrower rate
How does P2P lending work?
P2P lending on the Validus platform helps SMEs who are underserved, or unserved by traditional bank financing, gain access to working capital from investors (accredited investors or institutional lenders).
Simultaneously, investors can gain exposure to the SME asset class for high yield and low volatility investing, as it is relatively uncorrelated to markets due to absolute returns earned from repayment of loan facilities.
Validus has partnered with leading financial institutions, blue-chip and Government-Linked companies (GLCs), to deploy solutions that boost SME lending in supply chains.
By participating in SME lending opportunities on Validus platform, you are backing growing SMEs so they are well-positioned to grow their business, and drive employment and economic growth.
*Average SME Borrower Profile between Jul 2019 to Jun 2020
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 to invest with us, but we would need a copy of your documents for KYC checks. Please contact our Investor Relations team by email (firstname.lastname@example.org) or WhatsApp +65 8661 7644 for more information.
How are investors matched with borrowers?
Investors can choose to manually invest into live facilities on the platform after going through their own risk assessment or they can decide to enable Auto Invest by visiting the ‘Auto Invest’ tab in their account.
Are my returns taxable?
For Singapore residents, investments of this nature are subject to tax, please contact Inland Revenue Authority of Singapore (IRAS) for more details.
For non-residents, Validus is required to withhold tax on interest earned as per Singapore’s tax regulations. Withholding tax is calculated as a percentage on your Gross Return as stipulated by IRAS, and is deducted when repayments are applied to your account.
What is Auto Invest?
Auto Invest is a convenient way for you to invest. It automatically allocates your available funds to facilities according to your set preferences, in order to optimise funds utilisation and maximise returns.
You may use our investment diversification calculator to help you better picture what diversification means for your portfolio.
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
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.
What fees do investors pay to Validus?
We charge a 20% flat fee on earnings 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.
Please refer to our FAQs page if you have more questions.
Investment longer than indicative term
In some circumstances, your funds may need to remain on loan to a borrower beyond the stated indicative term. As trade financing facilities make up approximately 75%-80% of our loan book, it is common for repayments to be delayed due to the different repayment cycles of the borrower’s various debtors. However, as an investor, you will continue to accrue interest for each day your funds remain outstanding on the loan until repayment of the loan has been made in full. You will also be able to access the investor platform for any updates on the status of all the loans you have invested in.
No withdrawal of funds until the end of indicative lending period
You may withdraw any amount from your available balance at any time without penalty. However, you will not be able to withdraw the portion of your funds which have been extended as a loan to a borrower prior to the end of the indicative lending period.
Late payment or default of the borrower
In the event a borrower defaults on its loan, Validus will step in to assist with the recovery of your funds on your behalf and shall endeavor to update you of any progress at each stage of the recovery process. However, you may be charged certain legal fees for the recovery of your funds beyond the initial stages. Please contact your personal relationship manager at any time to discuss the same.
Please refer to the MAS Risk Disclosure Statement that you have signed for full details of risks involved in your investment. You may also refer to the General Performance and Risk Disclosure for detailed information on Validus’ historical performance.
Validus’s sourcing ability, quality checks, and default guarantees makes it a very attractive investment opportunity. Under the current Covid-19 situation when asset values across classes are eroding, an investment in SME lending makes good sense.Vivek J - CEO & Managing Director
Investing on the Validus platform has helped me to diversify my portfolio risk. It has allowed me to invest in a new asset class of SME credit, and enjoy above-market returns, with an insurance cover.Michael Drake - CEO
With Validus, investors have access to another avenue to generate high-yield passive income.Tiong Aun - Accredited Investor
*Projected figures are only an estimate based on a diversified portfolio with Auto-Invest enabled and will vary. This is for general information purposes only and is not an offer, solicitation, recommendation or advice to buy or sell any investment product.