Choco Up secured a US$15 million credit facility from private credit firm AlteriQ Global and completed the first drawdown, a move the fintech said was aimed at expanding growth and working capital finance for local small and medium sized enterprises.
FACILITY DETAILS AND PURPOSE
The facility is expected to provide financing to about 500 Singapore businesses. Choco Up recorded an 85 percent year on year increase in financing applications from Singapore SMEs and has disbursed more than S$100 million to Singapore businesses since entering the market.
The US$15 million facility was provided by AlteriQ Global, a private credit firm, and Choco Up completed an initial drawdown under the arrangement. Choco Up said artificial intelligence and technology-related investments were becoming more common funding use cases among Singapore SMEs.
The tenor, covenants and pricing of the facility were not disclosed.
WHAT THE COMPANIES SAID
Founder and chief executive Percy Hung said the partnership "strengthens our ability to support entrepreneurs with financing solutions that help them act on opportunities with greater confidence and speed".
AlteriQ Global managing director Zhi Yong Heng said many SMEs "continue to face challenges accessing capital that aligns with their growth journey", adding: "We believe Choco Up has built a strong platform with a clear understanding of SME financing needs."
Sources: Fintech News Singapore
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