Your Preferred Supply Chain Financing Partner. Singapore 2018

Transcription

1 Your Preferred Supply Chain Financing Partner Singapore 2018

2 CONTENTS 1 One Financials & Investment 6 Product & Services 2 Singapore s Lending Environment 7 How It Works 3 Mission and Solution 8 Trade Credit Insurance 4 Value Proposition 9 Our Supply Chain Ecosystem 5 Targeted Clientele 10 Contact Us 2

3 ONE FINANCIALS & INVESTMENT (OFI) - ABOUT US - The founders of OFI have over two decades of experience in SME banking. We have noticed a Gap between what the Banks are willing to provide and what the Borrowers Truly Need. SMEs make up more than 99% of our local enterprises and contribute to almost 50% of Singapore s gross domestic product. Yet, Banks have Limitations in Meeting their Financing Needs due to internal policies, speed, guidelines and risk appetite for different industries and customer segments. OFI was established as a specialized Supply Chain Financing Solution Provider to local SMEs to fill the financing gaps which the founders feel are hindering the business potential of many SMEs. Our goal is to Optimize the Cash-Flow Needs of SMEs and also to provide a Safer Alternative Investment Opportunity for our Co-Funders.. 3

4 SINGAPORE S LENDING ENVIROMENT Number, Employment and Value Added of Enterprises in 2017 Source: SingStat 4

5 SINGAPORE S LENDING ENVIROMENT S$ Billion Commercial Banks Loans and Advances by Industrial Classification Agriculture, Mining & Quarrying 27 Manufacturing Building & Construction Housing & Bridging Loans 57 General Commerce 19 Transport & Storage 70 Non-Bank Financial Institutions 66 Prof & Pte Indvs 40 Other Industries Source: MAS ANNUAL REPORT 2015/2016 5

6 SINGAPORE S LENDING ENVIROMENT - OBSERVATION - Due to Singapore s Deteriorating Economy in the recent years, the banks have become more Conservative and Stringent in their lending policies. Even quality clients may not be able to obtain adequate funding. There is a Rising Demand for SME Financing but a Shortage of Funding Supply. Banks Solutions are Not Adequately Meeting the Financing Needs of SMEs and there is a high dependency on the size of the company who is seeking financing. More Private Lenders and Crowdfunding platform are offering Working Capital Loans to enhance the SME lending market. However, Risk Management remains a Question as the Usage of the Loan cannot be controlled and Source of Repayment can not be fully ascertained. 6

7 SINGAPORE S LENDING ENVIROMENT - SME S FINANCING NEEDS & TYPICAL SOLUTIONS - Types of Financing Needs 1. Financing for Working Capital Needs 2. Financing for Transactional Needs Typical Financing Solutions 1. Term Loans for Working Capital Needs - Lump sum disbursement with fixed number of repayments 2. Receivable Financing Loans for Transactional Needs - typically done in two forms: Factoring Taking over Supplier s entire receivables ledger and its Customers/Buyers are notified (With Assignment) Invoice Discounting Supplier can choose which invoice(s) to finance in order to receive early payment(s) without its Customers/Buyers being notified (With No Assignment) But do the Typical Solutions Cater to the True Needs of the SMEs? 7

8 MISSION & SOLUTION - OUR MISSION - We strive to be the Preferred Supply Chain Financing Partner In South East Asia. 8

9 MISSION & SOLUTION - OUR SUPPLY CHAIN SOLUTION - Our Solution is to partner with Creditworthy Customers at the Upstream (Buy-side) of the supply chain ecosystem to reach out and Finance their Quality Suppliers (Sell-side). Our aim is simple; to help Both the upstream Buyers and its downstream Sellers ease their respective Cashflow Needs. We aim to do so by allowing our Buyer and its related companies to Maximize their payment period, while giving its Suppliers the Immediate cashflow needed to keep their business running optimally. This is important especially when their credit limits with their traditional financiers have been fully utilized. 9

10 VALUE PROPOSITION - UNIQUE VALUE PROPOSTION - Targeted borrowers are Bankable but Underserved, instead of the unbankable or start-up companies. We have the ability to Value-Add our clients by Introducing Business Opportunities. We are kept updated about the economy and changes of our targeted segments due to Close Relationships with the entire supply chain. Revolving Pre-approved Limits are granted and borrowers have a peace of mind knowing what is Readily Available to them. Once a Revolving Limit is set up, borrowers Do not need to go through the Lengthy Process. Disbursements are made fast and easy. Operation processes are made Easier for the borrowers due to our verification process. This reduces the pain point of borrowers where time is an essence. 10

11 VALUE PROPOSITION - INVESTMENT OPPORTUNITIES - GREAT FLEXIBILITY You can choose how long for your investment. STRINGENT RISK MANAGEMENT We perform extra due diligence to minimize risk. HIGH RETURN Investors can enjoy return up to 8% p.a. COMMITMENTS Unlike Crowdfunding platform, we have skin in the game. QUALITY PORTFOLIO We are supporting Bankable clients to grow together. DIFFERENTIATED FINANCING OPTIONS Financing against Invoices with Assignments to reduce risk. 11

12 VALUE PROPOSITION - RISK MANAGEMENT - Qualitative Approach Quantitative Approach Interview with the Key Promotors Site Visits Reference Checks Performance Risk Management (Studying Track Records/Current Portfolio/Pipelines) Past Litigation/Dispute Checks Financial Statement Analysis Bank Transactions Analysis Credit Bureau Report Analysis for Guarantors Banking Exposures Analysis Payables/Receivables Aging Report Analysis Concentration Risk Management of Buyers 12

13 VALUE PROPOSITION - BENEFITS FOR ANCHOR BUYERS - To ensure that your Downstream providers are Well Capitalized which will result in a Smoother Delivery/Improved Quality for Works Rendered. Helps to Foster a Better Working Relationship as your suppliers will appreciate the fact that they are provided preapproved financing limits based on Your Credible Reputation. As Anchor Buyers are in control of their referrals of quality suppliers, these buyers can feel at ease to co-invest with us in financing the suppliers whom they are comfortable with. It is an Alternative Investment with Full Transparency where the Buyers are certain Where the funds are being deployed to, the Purpose of the funding as well as How the returns are generated. 13

14 VALUE PROPOSITION - BENEFITS FOR SUPPLIERS - Fast Access to the receivables as soon as goods, services or work done has been approved. Once the Buyer approves an invoice, the Supplier can Receive Payment within Two Working Days. We offer Suppliers the Flexibility to finance Only the Invoices they need. Customized Solutions allow the Supplier s business to optimize cash flows by financing only what they require. We strike to provide Hassle-Free Solutions compared to a bank s complicated credit assessment and process. Suppliers are in control of their cash flow for Better Financial Forecasting and Growth. 14

15 VALUE PROPOSITION - TARGETED SEGMENTS - Construction Related Industries Manufacturing Transportation & Warehousing Information & Communications Food & Beverage Wholesale & Retail Trade 15

16 PRODUCTS & SERVICES We provide a set of tailor-made financing solutions for Import & Export legs. - ACCOUNT PAYABLES FINANCING - (Import Leg) Financing against Invoices/Claims from Borrower s Suppliers or Subcontractors. Funds are Disbursed directly from us to Borrower s Suppliers or Subcontractors. We require Corporate and Personal Guarantee with a Recourse back to the Borrower. - ACCOUNT RECEIVABLES FINANCING - (Export Leg) Financing against Borrower s Invoices/Claims billed to its Creditworthy Buyers. Funds are Disbursed directly to Borrower. We require Payments to be Assigned to us. We require Corporate and Personal Guarantee with a Recourse back to the Borrower. Trade Credit Insurance to be purchased for the invoices financed by OFI. 16

17 PRODUCTS & SERVICES - TIMELINE - Upon Submission of Full Documentations 2 Days 3 Days Legal Term Sheet issued for Approved Package Completion & Signing of Documents Setup Start Set up of OFI s Pre- Approved Limits (Master Agreement) Invoice Submission 1 Day 2 Day Disbursement Verification Assignment End 17

18 HOW IT WORKS - PROCESS FOR ACCOUNT PAYABLE FINANCING - Example Supplier Apple Buyer Borrower (Apple Sellers) Apple wants advance payment from Borrower, so Borrower needs to make upfront payments before Apple Products are delivered to them. OFI finances their purchases to free up their cashflow. 1. Buyer order Apple Products Supplier (Apple) 3. OFI making direct payment to Apple on behalf of Buyer OFI 5. Buyer repay at a maturity date 2. Buyer submit Apple s Invoice for AP financing Buyer (Borrower) 4. Delivery of Purchased Goods to Buyer 18

19 HOW IT WORKS - PROCESS FOR ACCOUNT RECEIVABLE FINANCING - Example Buyer Apple Supplier Borrower (Apple s Downstream Suppliers) OFI to partner with Apple to finance its Suppliers invoices billed to Apple. 3. OFI onboards Suppliers and a Preapproved limit is Granted 1. Master Contract is signed with our Apple which allows for verification/assignment process and referral fee payment 2. Apple refer OFI its quality Suppliers Supplier (Borrower) 4. Supplier submits invoice OFI 8. OFI pays Apple Referral Rebate Our Anchor Buyer (Apple) 5. OFI Verifies Invoice with Apple & arrange Assignment of Payment prior to disbursement 6. OFI disburse funds on after verification and assignment is done (Approx. 80% of invoice value) 7. Upon completion, Apple makes full payment to OFI 19

20 TRADE CREDIT INSURANCE - TRADE CREDIT INSURNACE PARTNER - VESL Pte Ltd provides and one-of-a-kind insurance protection for trade invoices. Its platform enables businesses to access affordable trade credit insurance on a pay-per-invoice premium, thus allowing its clients' financial flexibility for premium payments, instead of committing to an annual plan. VESL is backed by Euler Hermes (A Subsidiary of Allianz) and its platform is the first of its kind in the world. 20

21 OUR SUPPLY CHAIN ECOSYSTEM - KEY COMPONENTS OF OFI ECOSYSTEM - Step 1 Step 2 Step 3 Step 4 Portfolio Origination Risk Management & Operation Securitization of Portfolio Fund Raising Supported By OFI FiNex3 Other Sources Brokers Procurement Platforms Referrals Supported By OFI Onboarding OFI Underwriting OFI Fulfillment OFI Portfolio Management Key Parts of the Ecosystem Anchor Buyers Quality Suppliers Supported By Acore Capital Investments Asset Management Firms Classified By Portfolio by Industries Portfolio by Anchor Buyers Portfolio by Diversification Supported By OFI FiNex3 Acore Capital Investments Other Sources Fund Houses P2P Cloud Platforms Anchor Buyers 21

22 OUR SUPPLY CHAIN ECOSYSTEM - STRATEGIC PARTNERS - Finex3 Holdings was established in 2015 as a Business Advisory and Investment Platform. They Originate Deals, Aggregate Funds and Invest Alongside with their Investors. FiNex3 (S) is their Business Advisory arm and FiNex3 Capital is their Investment arm. Acore Capital Investments Pte Ltd (ACI) is a MAS registered fund management company in Singapore set up to provide comprehensive wealth solutions to UHNW clients in S.E.A. acorecap.com.sg Stellar Partners is a single family office investor founded by a successful Singaporean serial entrepreneur. A private VC fund focusing particularly on FinTech and information technology start-ups. Fullink Capital is headquartered in Singapore with presence in the local small and mediumsized enterprises (SMEs) funding industry. We are a premier business funding partner & provide SMEs funding solution consulting & advisory services. Tassure Asia is founded to help clients by providing professional and customizable accounting and corporate service at one-stop services CAPITAL HOLDINGS PTE LTD A 360 platform that provides a onestop shop for all your mortgage and business lending needs

23 OUR SUPPLY CHAIN ECOSYSTEM - OUR NETWORKS- CHINA ENTERPRISES ASSOCIATION 中资企业 ( 新加坡 ) 协会 SINGAPORE CHINESE CHAMBER OF COMMERCE & INDUSTRY 新加坡中华总商会 ASSOCIATION OF SMALL & MEDIUM ENTERPRISES (ASME) 中小企业商会 asme.org.sg SINGAPORE MANUFACTURING FEDERATION 新加坡制造商总会 smfederation.org.sg 23

24 CONTACT US Website: General Address: 29 Mayo Street, #02-02, Singapore Director/Founder: Vince Wang Address: Contact Number: Director/Founder: Vincent He Address: Contact Number: Your Preferred Supply Chain Financing Partner 24