CoAssets offers short and long-term financing in the form of working capital, invoice financing, expansion capital, and bridging capital. The platform provides the longest business loan durations (3 years) and is the only crowdsourced lender that allows businesses to upsize SME loans.
|Summary of CoAssets Lending Platform|
|Financing Types: working capital, invoice financing, expansion capital, bridging capital|
|Financing Amount: S$50,000 - S$3 million|
|Financing Tenure: 3 - 36 months|
Table of Contents
- What Makes CoAssets Stand Out to Borrowers
- Who Can Borrow: Eligibility Criteria & Application Process
What Makes CoAssets Stand Out to Borrowers
CoAssets offers the longest SME business loans of any Singaporean P2P/Crowdfunding platforms because it offers the longest SME business loans (up to 3 years). It is also the only platform also allows SMEs to accept more than their funding request ("upsize") for SME loans. Additionally, CoAssets offers a range of financing options including: working capital, invoice financing, expansion capital, and bridging capital.
Working capital loans help businesses that have short-term financing needs. SMEs that need to cover daily operational costs while awaiting accounts receivable may be well-suited for working capital loans.
Invoice financing allows businesses to receive funding based on invoices from work completed for their customers. It is a good financing option for SMEs with financing needs and significant invoices. Interest rates for invoice financing tend to be lower than other financing options.
CoAssets also provides crowdfunded capital expansion loans. This type of financing is ideal for SMEs that need funding to grow their business. These loans tend to have longer tenures and lower interest rates than short-term financing.
Finally, CoAssets offers bridging capital, which generally takes the form of a short-term loan to cover financing needs until a longer-term financing deal is reached. This might be a good option for borrowers that are waiting on another type of financing.
CoAssets Financing Features
|Financing Amount||S$50,000 - S$3 million|
|Financing Tenure:||3 - 36 months|
|Annualized Interest Rates:||5 - 30%|
|Platform Fee:||3 - 5% of financing amount|
|Cash Disbursement:||Within 45 days|
While CoAssets offers a variety of financing types, the platform has a few disadvantages. First, CoAssets does not offer financing as quickly (within 45 days) as MoolahSense or Funding Societies (within 1 and 3 business days, respectively). Further, MoolahSense offers larger SME loans (greater than S$5 million).
Who Can Borrow: Eligibility Criteria & Application Process
The CoAssets platform is designed specifically for SMEs. Only limited liability partnerships (LLP) and limited companies may apply for financing through the platform. CoAssets does not specify any other eligibility requirements on its website. However, details of completed deals indicate that paid-up capital, operational history, and ongoing litigation status are relevant characteristics that applicants should expect to provide. The entire process from application to cash disbursement takes up to 45 days.