New Union Lending Platform - Review for SME Borrowers

New Union Lending Platform - Review for SME Borrowers

A decent P2P/Crowdfunding lending platform which has raised more financing than any other site in the region, but does not offer loans with durations longer than 1 year

Good for

  • SMEs seeking short-term financing that may not qualify for other loans
  • SMEs that might choose to repay their loan early

Bad for

  • SMEs seeking long-term business expansion loans
  • SMEs seeking large equity financing deals

Editor's Rating

4.0/5.0

Because New Union does not offer loans longer than one year and lacks some of the transparency of its competitors, it is not the best crowdfunding platform available to Singapore SMEs. That being said, it is a decent option for SMEs that plan to apply short-term business loans from more than one platform. One advantage of New Union is that it does not charge penalties for early loan repayments. Also, New Union has raised S$142 million in business loans for SMEs in the Asia Pacific region, more than any of its competitors.

Summary of New Union Lending Platform
Largest P2P/Crowdfunding platform in region: S$2.7 billion raised for Asia Pacific SMEs (S$142 million excluding China)
No early repayment fee
Loan amounts: up to S$5 million

Table of Contents

What Makes New Union Stand Out to Borrowers

New Union's has raised S$2.7 billion in business loans for more than 5,000 SMEs in Asia Pacific, more than any other platform in our review. Excluding China, it has funded S$142 million, which is still one of the highest in South East Asia. This indicates that SMEs in Singapore may be more likely to secure funding due to the sheer size of New Union's financing capabilities. Further, the platform does not charge early repayment fees, which benefits SMEs that are able to repay loans quickly. For instance, it would reduce total borrowing costs for an SME that would only be taking a short-term loan for cash flow purposes, and would be able repay quickly. Finally, the platform offers the second largest SME loans of any P2P/Crowdfunding site in the region of up to S$5 million.

One disadvantage of New Union's platform is that it does not offer financing durations longer than one year. This may be prohibitive for SMEs seeking long-term financing to expand their business. Additionally, New Union does not offer financing quite as quickly as other platforms that provide cash within 3 to 7 days, but isn't far behind, offering cash disbursement in as few as 7 business days. Finally, the platform's website lacks some crucial details and transparency that many of its competitors provide, such as information on typical interest rates that borrowers could expect to pay and eligibility requirements.

New Union Financing Features

Financing AmountUp to S$5 million
Financing Tenure:3 - 12 months
Interest Rates:Fixed rates, No details available
Platform Fee:3 - 5% annually
Cash Disbursement:7 days+

Who Can Borrow: Eligibility Criteria & Application Process

New Union does not disclose the details of its application review process on its website. However, its minimum eligibility requirement is that borrowers are registered in Singapore as Private Limited or Limited Liability Partnership entities. Additionally, the application process requires certain documentation, although the website doesn't specify which documents are required.

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