Case Study · Singapore

Loan provided for client with time-sensitive investment

23 April 2019

Loan provided for client with time-sensitive investment

Rikvin Capital provides a short term loan for time-sensitive investment

An individual had a unique investment opportunity that required quick action, but they lacked the necessary liquidity. Despite having plenty of assets, their TDSR (total debt service ratio) prevented them from obtaining a loan from a traditional bank. The clock was ticking, and they needed a solution fast.

That’s when the individual reached out to Rikvin Capital. Rikvin Capital was able to provide the individual with a short-term loan to give them the liquidity they needed to make the time-sensitive investment.

Thankfully, the investment paid off, and the individual was able to repay the loan with the proceeds from the sale of a U.K. property. Rikvin Capital’s loan allowed the individual to take advantage of a valuable investment opportunity, which otherwise may have been missed due to a lack of liquidity.

Problem

  • An individual needed to make a time-sensitive investment
  • The Individual had a plenty of assets but needed some liquidity
  • Due to TDSR, the individual could not get a loan from a bank

Solution

  • Client engaged Rikvin Capital to provide a short term loan
  • Repaid loan with capital proceeds from sale of a U.K. property
  • Location: Katong, Singapore
  • Market Value: S$ 4,850,000
  • Loan Amount: S$ 1,500,000
  • Loan-to-Value: 30%
  • Duration of Loan: 9 Months
  • Payment Schedule: 9 Months
  • Asset Type: Landed Property
  • Completion Time: 10 Days

← Back to Case Studies

Get Funding Approval Within 24 Hours

Speak with our specialists about your bridging requirements.

Contact Us

FAQ

I have a time-sensitive investment but TDSR rules block me at the bank. Can you help?

Yes. Our short-term lending sits outside the 55% Total Debt Servicing Ratio framework that banks must apply, so asset-rich borrowers who fail the income test can still borrow. The Katong case here lent $1.5 million against a $4.85 million landed home in 10 days, releasing the liquidity needed for an investment that the bank could not support.

How much can I borrow against a Katong or East Coast landed home?

Landed homes in Katong, Joo Chiat, Marine Parade and the wider East Coast support up to around 70% loan-to-value. The Katong borrower in this case took only 30% ($1.5 million on a $4.85 million home) because they only needed liquidity for one investment, not the full borrowing capacity.

Can I repay the loan from a UK or overseas property sale?

Yes. We accept overseas property sale proceeds, business sale proceeds, dividend or distribution events, and other clearly-identified future receipts as the exit. The Katong borrower repaid us from the sale of a UK property, with the loan term timed to match the expected sale completion.