N1 Holdings Limited has secured $6.2 million in capital funding through its self-managed commercial lending fund ‘One Lending Fund’, and $3.8 million from its balance sheet and committed capital.
N1H also noted that it is currently in discussions with a pipeline of investors (including institutions) to raise further investments in the fund to meet “significant demand for short-term commercial loans”.
Following the announcement, N1H executive chairman and CEO Ren Hor Wong noted the group’s ambitions to deepen its funding pool to service growing demand in the commercial sector.
“We are pleased with reaching the milestone of raising $10 million of capital for commercial lending activities,” he said.
“Our focus is to continue the momentum by raising further capital.”
“We are targeting raising $25 million for the One Lending Fund, which will further our ambitions in the commercial lending space.”
Mr Hor Wong added: “At the moment, demand for loans exceeds the availability of capital and we believe we can increase the volume of loans we write to $25 million without significantly increasing N1H’s operational costs.
“We have developed the infrastructure and internal systems to be able to deploy more capital while maintaining appropriate risk control mechanisms. We strive to be a careful and responsible SME lender.”
The chairman added that the group has maintained the quality of its loan book, with an average loan to value ratio (LVR) of less than 60 per cent and an average loan size of $478,000.
“[To] date, the fund has not suffered any defaults,” he said. “We only lend to SME borrowers who own assets we can take security over.”
The group noted that access to the One Lending Fund is limited to wholesale investors.
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