P2P lending platform Validus and Visa have formed a business partnership while FLT’s private placement was oversubscribed.
Validus partners Visa to target SME segment
This programme is part of Visa’s ongoing efforts to support SMEs in Singapore and across the world. The partnership seeks to unlock capital for SMEs to reinvest in their products and services. The solution has been adopted by GroXers Inc Pte Ltd, an F&B distributor in Singapore.
Through this partnership, Validus works with Visa to facilitate immediate cash flow to SMEs, who have unpaid invoices in their payment cycles. By clearing invoices for SMEs using a Visa virtual commercial card, Validus helps SMEs expand faster and have a faster turnover for their products and services.
Validus also facilitates the tracking and management of invoice repayments via a tech solution, rather than a manual approach, which is time-consuming and prone to error. This is enabled by Visa’s commercial card solution and the fintech solution that Validus provides.
Food & beverage (F&B) businesses have to deal with a large number of buyers ranging from multinational corporations (MNCs) to smaller retail outlets. This large volume of invoices presents a unique problem for banks, which may be reluctant to discount invoices payable by SME customers. Validus mitigates this risk for the suppliers.
Validus COO Nikhilesh Goel highlights, “Validus is adept at assessing SME credit because of our sophisticated risk algorithm, and extensive SME lending experience. We strongly believe that our combined solution with Visa outscores traditional factoring solutions. This is primarily because of its bespoke nature, 100 per cent buyer coverage, and strong technology support.”
“This solution matches the appetite of accredited lenders and institutional investors, which forms our savvy investor base at Validus. Currently, we are collaborating with global banks to offer this solution regionally,” he adds.
Validus and Visa will look to increase the scope of businesses they support, including businesses that specialise in the distribution sector (e.g. Food & Beverages, FMCGs, consumer durables), services industries (e.g. construction, Information Technology, real estate, property management), and manufacturing (supply of goods from SMEs to large corporates).
FLT private placement oversubscribed
Frasers Logistics & Industrial Trust (FLT) announced on 28 June that it closed its private placement exercise of 78 million new units at an issue price of $1.01 each. This represents a 2.9 per cent discount on its last closing price of $1.04 and translates into gross proceeds of S$78.8 million and net proceeds of S$77.2 million.
Besides being 4.6 times subscribed, the final issue price also comes in at the top end of the indicative range of $0.985 – $1.01, which reflects the strong sentiment in the market and FLT’s prospects.
The private placement is unsurprising as FLT had previously indicated it may fund its proposed acquisition of a portfolio of seven industrial properties in Australia from its sponsor for an estimated total cost of A$179.6 million through a mix of debt and equity. Net proceeds raised from the private placement will be used to partially finance this acquisition.