Goldbell’s private debt investment platform, Goldbell Evolution Network (GEN), has raised S$900,000 for the launch of its new floor stock financing product. GEN, pronounced as “ghern”, provides alternative investment opportunities into private debt for accredited investors, family offices, business owners and professionals.
Floor stock financing is a short-term asset-backed revolving line of
credit used by automotive dealers to finance the purchase of vehicles
displayed on showroom floors (or lots). This pre-approved facility
limit allows dealers to request for multiple drawdowns on the credit
line and as the inventory is sold, the loan is repaid. Until then, the
inventory remains as collateral for the loan.
According to Goldbell, floor stock financing provides greater security to investors as 100% of
the loan is collateralised through a transfer of title and ownership to
Goldbell Financial Services (GBFS), the arm of Goldbell that runs and
managed GEN. GBFS is nominated as the co-insured and loss payee
of all insurance policies on all floored vehicles. In addition, the GEN
platform allows a short-term loan investment tenure of six months and
investors have the option to receive their principal in full or rollover
their loan investments in full or in part upon each loan maturity.
Launched in November 2019, 90% of GEN’s loans are secured against property-related assets in Singapore. Over the last six months, GEN has expanded their asset-backed verticals to include other assets like equipment. With the successful launch and fund raising for their first floor stock financing vertical, GEN has now added vehicle-backed assets to their list of offerings for investors.
CEO of Goldbell Financial Services Alex Chua attributes the well-received launch of their first stock financing product to several factors. He said, “Investors are looking for more secure and yet alternative investments during this pandemic, to diversify their portfolios. Floor stock financing is such an option. However, floor stock financing was traditionally offered by credit companies directly to vehicle companies. Through GEN, private investors are now able to take part in such investments.”
GEN sends details of potential investments to GBFS’ base of pre-approved and accredited investors and opens up investment opportunities for these investors to take part in with the purchase of “investment lots” of a predetermined amount per lot. GEN’s technology tracks individual investments and aggregates them to create this peer-to-peer (P2P) lending network which is a speedy and powerful way for investors to take part in numerous business deals that would traditionally be unattainable or unavailable to individual investors. P2P also helps business owners with additional access to funding, providing this opportunity of raising credit for their businesses and helping them to ride through the pandemic.
GEN’s first floor stock financing deal company, Bell Auto*, will now have access to a new line of credit to finance their business operations through the pandemic. Founded in 2018, Bell Auto is a commercial vehicle wholesaler in Singapore.
“Bell Auto’s business approach is centred on constant innovation. We’ve opted to raise credit through GEN a P2P platform because it allows greater flexibility and a longer loan tenure with the same interest rate as other private financing companies. We see this as an opportunity to help us ride through the pandemic, create even more value for our customers and emerge stronger,” said Ong Kheng Kwang, Bell Auto’s Sales Director.
“We intend to expand our range of used vehicles to help more local SMEs access to affordable secondhand vehicles.”
“Floor stock financing is a great way for investors to take part in the development of better industry practices in the automotive industry. With access to funds, automotive dealers will be able to invest in longer-term, more sustainable and profitable solutions for their businesses,” added Chua.
“With our GEN platform, we allow many more investors to play a meaningful role in the betterment of society by giving them access to a wider range of responsible investments. GEN will continue to seek for investment verticals that we can restructure with GEN technology and methodology to create more of such impactful investment options.”
Goldbell is Singapore’s largest industrial vehicle leasing company, with a fleet size of up to 8,700 vehicles in Singapore. GBFS has disbursed over S$777 million as of 31 July 2020, with a non-performing loan rate of less than 0.15%.
Goldbell Financial Services dedicates itself to providing clients with new and innovative financial solutions. It supports automotive, asset-backed and working capital loans. Currently available in Singapore and Malaysia, plans are also under way to offer Goldbell Financial Services in other markets, such as Cambodia.
Goldbell Group is Singapore’s largest player in leasing and distribution of commercial and industrial vehicles. Literally a driving force behind Singapore’s growing economy, Goldbell has been providing industry-wide transport and logistic solutions – passenger and commercial vehicles, as well as material handling equipment – for nearly four decades. The company’s diversified business portfolio operates under three main business pillars: distribution, leasing, and financial services, which deliver vehicle and equipment sales, leasing, financing, aftersales service, spare parts, insurance, and equipment usage training, as well as fleet management services.
*Permission has been obtained from Bell Auto to share their profile in the announcement.
