InvoiceInterchange reached a new milestone – we have helped local Singapore SMEs raise funds of over one million dollars (Singapore) to date (15th Feb). Our first invoice auction was a little over 5 months ago, back in August 2015.
InvoiceInterchange helps SMEs raise funds through its auction platform
At InvoiceInterchange, we aim to help local SMEs raise funds in a simpler and faster way. Our largest invoice was S$79k, fully funded by 10 investors in less than 24 hours. Our SMEs receive cash advance on the same day the auction closes, helping them to get the cash they need quickly to fuel their business growth. Our fastest auction closed within 4 minutes. This means the SME received its funding within 2 hours. Now this is what we call speedy customer service!
Over 45 invoice auctions have been successfully funded through our platform since launch. Capital is deployed from retail investors, high net worth individuals and family offices. 22 auctions have since been fully settled. Default rate is zero percent to date.
Tougher credit conditions
Recently, the Monetary Authority of Singapore (MAS) has indicated that Singapore’s total bank lending has declined over the last few months, especially in commercial and institutional sectors. This means, it will be a lot more difficult for SMEs to raise funds through bank business loans.
Invoice Trading 2016 view
Brian Teng, Co-Founder and CEO of InvoiceInterchange, commented “We are staring at an economic downturn and banks have started to tighten up their belts and reduce lending. This funding gap is only going to worsen due to the banks’ need to Basel III regulations. Banks will have to hold more capital against loans to smaller companies which could mean either higher cost of borrowing for SMEs or lower returns to banks and ultimately less lending to SMEs.
Furthermore, late payment issues will continue to stay and potentially worsen as businesses try to hold onto their cash for as long as possible. Many SMEs are looking for alternative sources of finance. We expect to see continuous growth in the invoice trading industry as it allows SMEs to utilise their balance sheets to create working capital, rather than adding on more liabilities / loans. Our goal is to help bring much needed short term working capital to SMEs to help them overcome their funding challenges and grow.”
Jamie Lee, Singapore bank lending falls 0.7% in December, The Business Times, Nov 30, link