A new P2P platform has already clocked up over $S110 million in transactions and is targeting the market for accredited investors.

Capital Springboard, a peer-to-peer invoice financing platform for accredited investors, has transacted more than S$110 million ($79.2 million) on its platform since its pilot testing phase got under way in June, it said yesterday. The firm is launching a new fund for accredited investors.

The firm said its new P2P platform has garnered “strong interest” amongst accredited investors and local small and medium-sized enterprises.

Its new fund, the Pentad Capital Springboard Class, is aimed at accredited investors in Singapore. It is run through a partnership with Centurion Portfolio Managers. The fund provides exposure to Capital Springboard's platform via a Cayman administered fund structure.

“Accredited and institutional investors on our platform are making returns of over 20 per cent per annum. Presently, we see an increase in transaction volume of 8–10 per cent monthly and I expect this to continue growing by over 150 per cent in the next twelve months,” Roger Crook, chief executive of Capital Springboard, said in a statement.

The rise of peer-to-peer financial channels has been a feature of the market in recent years, fuelled in part by how conventional bank lending has been squeezed by tougher capital rules following the financial crisis, creating a funding gap that new entrants have sought to fill. Such channels sometimes do not come with the kind of depositor protection afforded to banks, which is one reason why they can typically earn higher yields on money that is lent out. 

Commenting on the new fund, Crook said: “It is open for subscription and is well-suited for investors looking for managed receivables allocation with high returns to include in their existing portfolios. Capital Springboard is the sole asset within the class, allowing us to provide investors with up-to-the-minute performance snapshots.”

Investors on the platform include Singaporeans and expatriate high net worth individuals primarily from independent financial advisors and family offices. Capital Springboard has financed over 1,550 invoices to date from SMEs.

To be on the platform, SMEs have to be Singapore-registered and have been operating for at least a year, with a minimum turnover of S$100,000 per annum. Up to 70 per cent of SME applications are accepted in line with a firm commitment to maintaining the quality of investments.

Accredited investors can open a Capital Springboard trading account held by escrow agent Vistra Trust (Singapore), with a minimum investment of S$50,000. They can withdraw their undeployed funds at any time.

Capital Springboard is backed by Centurion Portfolio Managers, a London-based investment advisor regulated by the Financial Conduct Authority.