Home News In print this week

Invoice crowdfunding firm Validus offers SMEs ‘virtual credit card’

Trinity Chua
Trinity Chua9/4/2017 08:00 AM GMT+08  • 6 min read
Invoice crowdfunding firm Validus offers SMEs ‘virtual credit card’
(Sept 4): For small and medium-sized enterprises, a single delayed payment from a customer can mean a major dent in cash flows. Invoice crowdfunding start-up Validus Capital thinks it has a good solution to this problem.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(Sept 4): For small and medium-sized enterprises, a single delayed payment from a customer can mean a major dent in cash flows. Invoice crowdfunding start-up Validus Capital thinks it has a good solution to this problem.

Two-year-old Validus has partnered Visa to launch a “virtual card solution” that gives SMEs credit in exchange for their invoices. Each SME is given a monthly credit limit and can draw on this credit by putting an invoice up for funding on the Validus platform. Validus says it has about 50 accredited investors on its platform, which consistently fund these invoices within an hour.

“We do not cherry-pick which invoices to finance, which makes us quite different from the banks [and other invoice crowdfunding platforms],” says Vikas Nahata, co-founder of Validus. “We can approve SMEs within 48 business hours on average. Then, we offer to finance all their receivables at a rate that is more expensive than the banks but cheaper than their alternative options such as money lenders.” The start-up charges SMEs an interest rate of 10% to 18% a year, depending on how risky the business is.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.