Capital Springboard has launched a peer-to-peer financing platform for sophisticated investors seeking high returns on short-term invoices.
Investors benefit from annualised returns of 11 to 25 percent depending on the degree of risk of the invoice, during a 90-day investment period, Capital Springboard said in a statement on Wednesday. The higher the risk, the higher the returns. The Singapore pilot projected, started in July 2015, has already seen S$80 million worth of invoices traded.
«Singapore is a global financial hub and a market with a sizable sector of small-to-medium enterprises (SMEs) that requires access to capital. Our Singapore pilot proved very encouraging with over 1,300 invoices worth $80 million funded and we look forward to keeping the momentum,» Roger Crook, CEO of Capital Springboard, said.
Regulated by the MAS
Accredited Investors can open a Capital Springboard trading account held by escrow agent, Vistra Trust (Singapore), with a minimum investment of S$50,000 and withdraw their undeployed funds at any time. Vistra Trust is regulated by the Monetary Authority of Singapore (MAS).
SMEs will incur a one-off origination fee of 2 percent of the amount advanced to them. SMEs with an invoice minimum of $25,000, registered in Singapore and in business for at least a year, will be allowed to participate in the peer-to-peer investing platform. SMEs are vetted by Capital Springboard’s experts for credit worthiness and financial strength in order to minimize risks imposed on investors.
