New Union is a decent P2P investment platform, which provides investors access to short-term investments in SMEs across Asia Pacific, including China. Unfortunately for investors, the platform lacks investment opportunities longer than one year and features a much more complicated application than its competitors, rendering it a less than ideal experience for every investor. Still, the fact that it provides investment opportunities in Chinese SMEs definitely sets it apart from other crowdfunding platforms in Singapore. The platform also offers the second largest financing opportunities (up to S$5 million) of all Singapore P2P/Crowdfunding sites. Additionally, it is one of two platforms in Singapore to offer secured and unsecured business loans.
|Summary of New Union Investment Platform|
|Largest P2P/Crowdfunding platform in region: S$2.7 billion raised for Asia Pacific SMEs (S$142 million excluding China)|
|Platform allows investments as large as S$5 million|
|Secured investments available|
Table of Contents
What Makes New Union Stand Out to Investors
New Union is the largest P2P/Crowdfunding investing platform in Asia Pacific. The platform has loaned S$2.7 billion for SMEs in the region (S$142 million excluding China). The impressive track record gives investors confidence that they will be able to find a wide range of investment opportunities. Additionally, the platform has provided short-term (1- 12 months) loans as large as S$2 million and allows for deals as large as S$5 million. This indicates that investors will have access to large scale investment opportunities. New Union's 15% (of interest earned) investor fee and S$1,000 minimum investment are both relatively standard among its competitors.
Finally, New Union is one of two crowdfunding investing platforms that offers secured and unsecured investment opportunities. Secured business loans are backed by borrowers' collateral, meaning the borrower has provided an asset that it can sell to repay lenders in case of default. Because of this, secured loans may be attractive for risk averse investors.
Investors seeking longer-term opportunities may be disappointed in New Union's offerings, as the platform does not provide financing longer than one year. Short-term investments may present extra hasle due to the more frequent reinvestment process. Additionally, the application process, which includes significant documentation and a suitability test, appears to be more burdensome than other P2P/Crowdfunding investment platforms. Finally, New Union's website tends to be less transparent than other platforms, as it lacks crucial information like its average returns and default rates.
|Total Deal Amounts||Up to S$5 million|
|Investment Durations:||1 - 12 months|
|Investor fee:||15% on repaid interest|
|Annualized Returns:||From 7%|
|Security:||Unsecured or secured against invoices/collateral|
Investor Eligibility Requirements
Individual and corporate investors are eligible to invest with New Union. Individual investors must be at least 18 years old, a Singapore citizen or permanent resident (with employment, dependent, or student pass), have a mobile phone number, and a have a local or foreign qualifying bank account. Registration may take up to 3 days. Corporate investors must be incorporated in Singapore, have a mobile phone number and a have a local or foreign qualifying bank account. Additionally, New Union requires that potential investors take a suitability assessment test to ensure that they understand the risks of investing.
|Singapore Requirement||18+ years old Singapore citizen or permanent resident||Incorporated in Singapore|
|Phone||Must have mobile number||Must have mobile number|
|Bank Account||Local or foreign qualifying full bank||Local or foreign qualifying full bank|
Individual investors must submit proof of identity (NRIC identity card or passport) and residence (utility/phone/internet bill, bank statement, etc.). Corporate investors must submit certified true copy of the Limited Liability Partnership agreement or Memorandum and Articles of Association, proof of identity and residential address of directors/partners/managing partners, and proof of local trading address dated within last six months.