Case Study · Singapore

Loan provided for client with time-sensitive investment

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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

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FAQ

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.
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.
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.