Unsecured Lending is a short term loan in the form of promissory note issues to the borrower that provides cash advance and is repaid in a pre-determined fixed amount over a fixed tenure period at a specified interest rate. This type of financing are generally catered to small business who has no collateral and no access to bank lending due to its lack of assets in the balance sheet. Generally, the cash is employed by business to secure new projects, working capital needs to fund inventory or simply to cover short term cash deficiencies. Capital Solutions can offer financing based on the businesses’ sales and earnings. Repayments are generally paid and deducted through GIRO on the monthly basis, or any other recurring period depending on the business’ needs. Capital Solutions also offer flexibility in the structure of the product, such as the tenure and repayments structure. This product is catered mostly to more established business who already have a stable monthly sales and cashflow and who prefer a fixed repayments amounts to service the loan.

At the same time, Capital Solutions offer this unique alternative investment opportunity to investors to directly invest in the Singapore small business credit market and gain exposure directly to the market at attractive yields and relatively low minimum investment, allowing investors to diversify the portfolio of credit. Typical duration for this product is slightly longer as compared to the others and should range from 6 months to 12 months.

Unsecured Lending
  • Step 1

    SME agree to borrow money and list in platform

  • Step 2

    Capital Solutions investors submit bid and fund the loan

  • Step 3

    Capital Solutions provide advance loan

  • Step 4

    SME provide repayment at regular intervals

  • Step 5

    Capital Solutions pays investors

Who?
  • Business established for at least 18 months
  • Annual sales at least $1 million
  • Flexibility on funding size
  • Loan tenure could range between 6 to 12 months
Why?
  • Customised repayment terms
  • Access to loan up to 1 year tenor
  • Regular repayment schedule
  • Automated repayment deduction
  • No restriction on use of funds
  • Competitive and flexible financing terms as compared to bank loan
  • No need for collateral