Thu 08 Oct 2020 – 17:09
VALIDUS Capital has joined Singapore banks to offer government guaranteed loans under Enterprise Singapore’s corporate finance program.
This week, the Singapore-based fintech gained official approval to offer small and medium-sized enterprises (SMEs) financing that represents up to 90% of the risk assumed by the government.
A Validus spokesperson told The Business Times it is using data analytics to assess the creditworthiness of SMEs, taking into account pre-Covid and post-Covid performance to provide a “fitted and dynamic” view of the data commercial.
Among others, Validus also selects SMEs for litigation proceedings, or which have bankruptcy proceedings pending against directors. “Many SMEs are rebounding stronger as the economy opens up,” the spokesperson said.
As for the type of these government guaranteed loans available, the fintech plans to mainly distribute working capital loans over the next six to nine months.
It also plans to stick to the usual loan size of between S $ 50,000 and S $ 300,000 per SME. The terms will likely be slightly shorter than those of the banks, the Validus spokesperson said.
Validus Capital will use its balance sheet to fund loans under the Enterprise Singapore programs. This means that these loans cannot be funded through peer-to-peer investments.
In a statement, Nikhilesh Goel, Co-Founder and CEO of Validus, said: “With these government-backed programs, we look forward to playing a much larger role in meeting the financing needs of underserved SMEs and those of small businesses. affected by the pandemic. “