We offer secured and unsecured loans.
Most of our secured loans are mortgage loans, which are short-term loans secured by properties. As a lender, we will have the first legal mortgage on the subject property. The borrower may later choose to refinance the property with long-term conventional financing or to sell the property in order to pay off the secured loan.
Alternative financiers, like ValueMax, are able to approve and fund a loan much faster than banks. We do not require as much documentation, and the approval and funding process can be completed within a week or two. Banks, on the other hand, typically take at least 30 to 45 days to approve and fund a loan.
Our primary concern is the value of the real estate that will serve as collateral for the loan, and the loan to value (LTV) ratio. Banks, on the other hand, focus on the borrower’s credit rating and income when assessing loan applications.
The application process is quick and easy.
The loan can be funded rapidly, usually within 14 working days (for unencumbered properties).
Even if a borrower faces challenges like low credit scores, inadequate income history, or a lack of stable income, they can still secure financing from us with collateral.
The borrower prefers to avoid the time-consuming application process at a bank.
The bank has already rejected the borrower’s loan request.
The borrower requires rapid funding.
The borrower faces challenges concerning their credit and income.
Interest rates on loans from alternative financiers are typically higher compared to conventional bank loans.
Our secured financing facility is primarily designed for short-term utilization.
Once the potential borrower contacts us, they are required to fill out a loan application form containing personal details and information about the property in question. We promptly review this information to assess the feasibility of the loan.
While the borrower’s credit is considered important, the most crucial factor is the loan-to-value (LTV) ratio based on the property to be mortgaged to us. The subject property will then be appraised by an independent valuer. Once this appraisal is completed, we proceed with loan processing, and funding can be disbursed within a few days, contingent upon the completion of necessary paperwork by the lawyer.
If a borrower fails to meet the obligations of a hard money loan, there is a risk of facing foreclosure and potentially losing the property or properties that were used as collateral to secure the loan. However, foreclosure is not our preferred course of action. We would much rather receive full repayment for the remaining loan balance without any additional difficulties. When a borrower starts to miss payments, we will make efforts to communicate with them and seek a mutually agreeable solution. Foreclosure is considered the ultimate last resort in such situations.
We conduct our operations in accordance with the guidelines and regulations stipulated in the Singapore Moneylenders Act.
Our loan can be processed and funded within a span of two weeks. This significant advantage highlights the benefit of choosing alternative financiers like us, as traditional banks might take 30 days or even longer to fund the same loan request.
Banks retain funds from their depositors and provide them with very low-interest rates. Consequently, the banks can offer loans at lower interest rates. In contrast, we secure funds from private investors (or fund the loans internally), who anticipate higher interest rates due to the higher risk borne by the lender.
In contrast to banks and other conventional financing institutions, we place less emphasis on a borrower’s credit and Credit Bureau (CBS) scores. Our primary focus lies in evaluating the value of the property being purchased or refinanced. We believe that credit scores alone should not hinder a borrower with poor credit from securing a loan from us.
Our secured loan facility may or may not include a prepayment penalty, depending on the specific loan situation. To ensure clarity on the prepayment penalty, it is advisable to inquire with us directly from the outset.
The table below outlines the main distinctions in terms of mortgage loan features between us and conventional financial institutions.
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|FINANCIAL INSTITUTIONS||VM Credit|
|Basis for loan approval||Income, credit score, credit history etc||Value of Real Estate|
|Minimum credit rating||BB||Use credit rating for reference only|
|Property Types||Typically residential and commercial||All except HDB and JTC properties|
|Loan Tenure & Repayment Structure||Rigid||Flexible|
|Approval Process||A few weeks||Within 2 weeks|
|Loan Disbursement||3 months from approval||Within 2 weeks from approval|