We are delighted to see great news from our client, Validus Capital. This online lending platform linking small and medium-sized enterprises (SMEs) with astute global investors, is the first in Singapore to provide investor insurance on its invoice discounting services, by partnering with EQ Insurance. This is unique, as it protects the investor from full or partial default by the borrower.
Validus Capital already conducts a rigorous triple layer of due diligence and risk assessment on SME loan applications. By offering investor insurance, they will provide an extra layer of protection.
Invoice financing is key for Singaporean SMEs. Offering insurance to the investors is a way of securing them, and presenting greater opportunities for the SMEs who are struggling in the hard economic times.Validus Capital aims to create a win-win scenario for all.
The platform, which was set up last year, has an impressive zero percent default rate thanks to its rigorous due diligence, resulting in a more than 18 percent annualized return to investors. In the last few months the company approved 30 SMEs for invoice financing services, each with an average revenue of $5 million. Validus Capital provides an average loan of $200,000 with a tenure of six months. The investors onboarded are accredited investors who invest a minimum of SGD 100,000 through the platform.
Validus Capital is a great example of a client shaping industry trends. They are one of the first online lending platforms to offer security to investors in Singapore. We applaud them for their industry leadership and look forward to even greater success as they expand their business.