FAQ for Alternative Funding
Peer-to-peer lending is a new financing method that allows SMEs with little credit history or SMEs that need short-term bridging loans to crowdfund and raise money.
A P2P lending platform enables such activities on an industrial level, allowing businesses to get the loans they need without having to spend time going from lender to lender in search of assistance.
If you're a small to medium enterprise without the cash or credit history necessary for bank loans and other forms of funding, peer-to-peer lending may be just what your business needs. P2P lenders provide financing based on applicants' credit scores that are determined by factors like how long they've been in business, their previous financial transactions (especially those involving repayment), and more.
Licensed P2P lending operators must have a Capital Markets Services License and will have to comply with the controls and disclosures required of it under the MAS Circular No. CMI 27/2018 (securities-based Crowdfunding Circular)(issued 23 August 2018).
Currently, Funding Societies (FS Capital) and Validus Capital are involved in the Temporary Bridging Loan program.
What does it mean?
Given the Risk-Sharing by Enterprise Singapore, the above lenders might be more incline to approve 'borderline' cases given the 70%-30% risk-sharing.
What is Temporary Bridging Loan?
The TBLP was introduced to help enterprises access working capital.
As announced in the Solidarity Budget on 6 Apr 2020, the Government will enhance the TBLP further with 90% risk share. The enhancement will apply to new applications initiated from 8 April 2020 until 31 March 2021. For applications that are pending approval from PFIs, enterprises are advised to speak to their PFIs on their eligibility.
As announced on 12 Oct 2020, TBLP will be extended from 1 Apr 2021 to 30 Sep 2021. Under this extension, the Government’s risk-share on the loan will be lowered to 70% (90% currently) with the maximum loan quantum lowered to S$3 million (S$5 million currently). This is to calibrate the support for businesses as the economy gradually recovers.
The use of P2P lending platforms for SMEs is becoming increasingly popular because they can approve loans as quick as 24 hours after the application has been made. This convenience and speed make them appealing to those with urgent needs, such as small business owners who may need funds quickly or entrepreneurs looking to expand their business
While conventional banks might take 2-3 weeks to get the loan application approved and disbursed.
Most PFIs will require the standard documents listed below for processing:
Latest 6 months company’s operating account
Latest 2 years company audited/ management report
Latest 2 years notice of assessment of directors/shareholders
Photocopy of directors/shareholders NRIC (front and back)
Some may ask for additional documents such as the company’s debtor aging list, corporate Notice Of Assessment, GST tax filing, etc.
Yes, of course. Besides applying by yourself, you can engage us to act as a middleman between you and potential lenders. We understand the daunting task of going through the whole rigorous process of document submission and numerous Q&As for a company to take up a business term loan.
Our job is to work on your behalf and with several Peer To Peer Lenders to find the P2P loan which best fit your needs with the lowest rates. We have a well-developed stable of lenders we work with, making your life easier.
We are like your company loan concierge; we do all the legwork for you, negotiate terms, and make the approval magic happen. All for a nominal fee, of course.
SMART FUNDING Buy Now Pay Later Scheme is a new innovative initiative to help SMEs ease their cashflows
First BNPL SME scheme in Singapore, this option provides SMEs with the flexibility to finance the purchase of good and services, with ZERO* upfront payment and instead make installment payments over 6-9 month
Buy Now Pay Later Features:
Not Vendor Dependable (SMEs can get approval for goods and services purchase with their choice of vendors)
Up to 9 months loan tenor which is longer than current BNPL providers in the market
Fast application turnaround time of 10 working days
Finance purchase of goods and services with ZERO* upfront payment
- Applicable for Pte. Ltd. Company only
*subject to company financial profile