Singapore’s leading marketplace lending platform MoolahSense, has added a new business financing solution to its product line – Invoice Financing.
This product allows SMEs access to additional sources of financing and to address their cash-flow issues. Investors can earn up to a nominal interest rate of 12% p.a. with a short-term investment.
Singapore, 11 April 2017
The new financing solution supplements MoolahSense’s existing business financing product that has successfully provided funds of over $25 million in total to more than 150 SMEs. It will also benefit SMEs looking to raise short-term financing upwards of $15,000. This facility allows SMEs to submit their tax invoices for verification and receive from MoolahSense’s registered investors a loan of up to 80% of the invoice amount to address the SMEs’ cash flow issues quickly, in addition to competitive pricing and faster approvals. The tenure for such invoice-supported loans typically ranges from 15 to 90 days, maturing on the payment due date of the invoice.
To qualify, SMEs must: have tax invoices with fixed payment terms of 15 – 90 days from their customers; be Singapore-registered companies or limited liability partnerships, and have an annual revenue of at least S$100,000 and at least 12 months’ operating history.
Lawrence Yong, CEO of MoolahSense, remarked: “Over the past two years, we have focused on helping businesses whose financing needs are underserved. Our experience thus far has been Propecia satisfactory in curating performing loans. With this new solution, we aim to make business financing even more inclusive by addressing a new segment of customers whose profile may be ignored by traditional lenders.”
From an investor perspective, the tax invoice provides a degree of assurance that the SME borrower will have incoming cash flow from its customer to meet the repayment due under the invoice-supported loan. In addition, as an invoice supported loan would mature in 15 to 90 days’ time, investors would be able to receive returns in a relatively shorter period of time.
Commenting further, Lawrence Yong said “Investors on our platform can now look to earning up to a nominal interest rate of 12% p.a. within a period of three months or less and further diversify their portfolio.”
Moving forward, MoolahSense is gearing up to launch additional financing products to assist SMEs in raising capital whilst providing more investment opportunities for investors. Furthermore, the company is looking to scale its operations and expand its footprint overseas, with a focus on introducing the innovation of marketplace lending into Southeast Asia.
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