New Union Crowdfunds a Total of $660,000 for MEZZO Interiors.
New Union (Singapore) Investment Pte Ltd, one of Singapore's leading business financing platforms, today announced that it has financed a total of S$660,000 in a Singapore-based interior design firm, MEZZO Interiors. This was done through three financing tranches, with the latest deal closing last week. MEZZO Interiors was set up in 2013 and specialises in commercial renovations for financial institutions and large corporate clients. MEZZO Interiors will be using this new financing as working capital and to expand the business in Singapore and regionally. New Union has offices in Singapore, Taiwan and China.
"Receiving this injection of funds from New Union comes at an opportune time. We are in the midst of expanding our team, in order to cope with the upcoming series of Alteration & Addition and rebuild works we have secured, together with a few management of overseas projects in Cambodia. We are grateful for this alternative source of funding, as previously seeking a loan from a bank was difficult, due to the fact that we are a young business who did not meet their minimum criteria. Through New Union, we expect to increase our annual turnover by three times." said Mr Lee YueCheng, Director and founder, MEZZO Interiors.
"We are happy to partner with MEZZO Interiors to provide this business financing that will help the company strengthen its operations and position. Through crowdfunding, we hope to help aspiring SMEs elevate their business standing and have their needs addressed by the local banks in future. In Singapore, New Union has currently facilitated over S$21 million in funds for some 82 deals in about 40 local SMEs, making us the largest crowd financing platform here. Moving forward, we hope to continue supporting more SMEs in their financing needs, by connecting them with accredited investors and businesses," said Mr Eddie Lee, Co-Founder and Managing Director, New Union.
New Union's investment procedure is simple. Loans are requested by SMEs through New Union's online platform (www.newunion.sg). All applicants are put through a rigorous assessment process, to ensure that the businesses have a greater likelihood of repaying the loans. This assessment allows New Union to determine whether the loans will be made, and if so, the quantum, interest rate, loan duration and conditions of approval. A report is generated for final approval by New Union's Credit Risk Committee, which is made up of a panel of experienced business professionals and investors.
New Union raises funds from accredited investors and institutional investors. SMEs usually obtain loans at interest rates as low as 8% per annum, supported by one or more investors usually within 2 weeks from the application date. The investors also benefit from attractive risk-adjusted returns. To date, all applicants have repaid the loans within the stipulated duration, which is typically 3-6 months.
In total, New Union has handled financing of more than S$168 million across Asia to over 500 SMEs. These are mainly for SMEs in sectors such as engineering, construction, services, fast-moving consumer goods, F&B, healthcare, IT services, wholesale, retail and property. New Union recently set up its office in Taichung, Taiwan, to facilitate the matching of Taiwanese investors with Singapore companies.
For its own financing, New Union has successfully raised an angel round of capital which includes famous entrepreneur Ivan Lee. Ivan Lee is the co-founder of Thai Express who sold his business for S$80 million in 2008 and now sits on New Union's Board of Directors. New Union plans to embark upon its Series A investment round by the end of this year, to raise sufficient capital to grow the business across the region.
"New Union's sterling track record and explosive growth makes it an automatic choice for investors. Their management team is young, dynamic and also visionary. In a short span of time, New Union is already the market leader in the crowdfunding space which is the biggest thing for Asia right now" said Mr. Ivan Lee.
Published on Yahoo! Finance on 29 June 2015, 5.19am
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