A Singapore-based receivables and supply chain financing provider launched its own investor platform.
Aimed at accredited and institutional investors from around the globe, the platform from Culum Capital facilitates invoice financing to small and medium enterprises (SMEs) as an alternative to traditional financing sources.
The platform uses its proprietary credit scoring and on-going risk measurements to identify investment opportunities while also providing transparency. The transactions carry a short tenor of maximum 120 days, with the average transaction at 70 days. Annualised gross returns are between 10 and 25 percent, with a strong SME diversification across the Singapore economy.
Considerable Potential for Alternative Funding in Asia
Co-founder and managing director of Culum Capital Ginnie Chin previously held trade finance roles with major banks including as vice president for global transaction banking at ABN Amro, vice president for trade and supply china sales for HSBC, and director of transaction banking for Standard Chartered Bank.
«We are delighted to bring to the market a strong alternative for investors, with 100 percent of all deals fully subscribed within 24 hours,» said Chin. According to SingStat, there were 216,000 SMEs in Singapore at the close of 2016, representing 99 percent of all businesses.
The SME's contribute 47 percent or $174 billion dollars to the economy’s nominal value added. Recent research cited by UOB in their ASEAN FinTech report, also talks of the huge potential for alternative funding in ASEAN for the SME segment.
