Case Study · Singapore

Malaysian property developer takes up a short-term loan for working capital

10 January 2023

Malaysian property developer takes up a short-term loan for working capital

Malaysian Property Tycoon Secures Working Capital with Singapore Real Estate Collateral: Short-Term Loan Obtained

The Malaysian property developer and tycoon faced a need for working capital to boost their business operations and stay ahead of the competition in the dynamic Malaysian property market. After exploring various financing options, the developer decided to utilize a prime Singapore property that they owned as collateral and approached Rikvin Capital for help.

Rikvin Capital provided the developer with a straightforward and flexible financing solution that allowed them to secure the necessary working capital quickly. The short-term loan was instrumental in allowing the developer to enhance their business operations by investing in new projects, hiring additional staff, and making improvements to existing properties.

The successful loan demonstrated the developer’s astute business acumen and their ability to make smart financial decisions. Rikvin Capital’s flexible financing solution allowed the developer to continue operating and growing their business, positioning them for continued success in the future. The developer was pleased with the outcome and grateful for Rikvin Capital’s support.

  • Location: Orchard Road, Singapore
  • Market Value: $7,500,000.00
  • Loan Amount: $4,000,000.00
  • Loan-to-Value: 53%
  • Duration of Loan: 6 Months
  • Payment Schedule: Interest deducted in advance
  • Asset Type: Residential Property
  • Completion Time: 5 Days

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FAQ

I am a Malaysian developer. Can I borrow against my Singapore property for working capital?

Yes. Cross-border borrowers using Singapore property as security are a normal part of our book. The Malaysian developer here borrowed $4 million against an Orchard Road residence (53% loan-to-value) in 5 days. We focus on the Singapore property value, not your Malaysia-side income or credit history.

How fast can a cross-border borrower get funded?

5 to 10 working days is realistic for clean Singapore property collateral, as in this Orchard Road case. We run KYC, valuation and legal in parallel and accept overseas-resident borrowers without delay. New borrowers should allow a few extra days for source-of-funds and beneficial-ownership checks.

What does "interest deducted in advance" mean?

It means the full interest cost for the loan term is taken out of the loan principal at drawdown rather than paid monthly. The Malaysian developer here received the net amount on day one, with no monthly interest payments to manage from across the border. This suits borrowers who want a clean lump-sum repayment at the end.