Goldbell’s private debt investment platform, Goldbell Evolution Network (GEN), has successfully secured S$900,000 in funding to launch its latest product: floor stock financing. GEN, pronounced “ghern,” offers alternative investment opportunities in private debt, catering to accredited investors, family offices, business owners, and professionals.
Floor stock financing is a revolving line of credit designed for automotive dealers. This short-term financing solution, backed by assets, allows dealers to purchase vehicles for their showroom floors (or lots). With a pre-approved facility limit, dealers can make multiple drawdowns. As inventory sells, loan repayments are made. Unsold inventory serves as collateral for the loan.
Goldbell highlights the security benefits of floor stock financing for investors. With 100% of the loan collateralized, title and ownership of the vehicles are transferred to Goldbell Financial Services (GBFS), the arm of Goldbell responsible for GEN. Additionally, GBFS is named as the co-insured and loss payee on all insurance policies for the financed vehicles. The GEN platform offers a six-month investment tenure for these short-term loans, and investors can choose to receive their principal in full or reinvest it upon loan maturity.
Launched in November 2019, GEN has primarily focused on property-related assets in Singapore, with 90% of its loans secured by these assets. In recent months, GEN has broadened its asset-backed offerings to include equipment. The successful launch and funding of their first floor stock financing product marks the addition of vehicle-backed assets to their investment portfolio.
Alex Chua, CEO of Goldbell Financial Services, attributes the positive reception of their inaugural stock financing product to various factors. He notes that investors are actively seeking secure, alternative investments to diversify their portfolios during the pandemic, and floor stock financing fits this need. He highlights that GEN now allows private investors to participate in this type of investment, which was previously only available to vehicle companies through credit companies.
GEN facilitates these investments by sharing potential investment details with GBFS’s network of pre-approved, accredited investors. Investors can participate by purchasing “investment lots” of a predetermined value. The platform’s technology manages individual investments and aggregates them, creating a peer-to-peer (P2P) lending network. This efficient system allows investors to engage in various business deals that were traditionally inaccessible to them. This P2P approach also benefits businesses by expanding their funding sources, allowing them to access credit and navigate the pandemic’s challenges.
Bell Auto, a commercial vehicle wholesaler established in Singapore in 2018, is the first company to benefit from GEN’s floor stock financing. This new line of credit will support their business operations during the pandemic.
Ong Kheng Kwang, Sales Director at Bell Auto, emphasizes their company’s commitment to innovation and explains their decision to secure credit through GEN. He cites the platform’s flexibility, extended loan tenure, and competitive interest rates compared to other private financing options. He sees this as a strategic move to weather the pandemic, enhance customer value, and strengthen their market position. He adds that Bell Auto plans to expand their used vehicle inventory to provide more affordable options for local SMEs.
Chua emphasizes that floor stock financing presents a unique opportunity for investors to contribute to industry best practices within the automotive sector. With increased access to funding, automotive dealers can prioritize long-term, sustainable, and profitable solutions.
Chua highlights how GEN empowers a broader range of investors to make a positive social impact by providing access to responsible investment opportunities. GEN remains committed to identifying investment verticals that can be enhanced through their technology and methodology, aiming to create more impactful investment options.
Goldbell holds the position of Singapore’s largest industrial vehicle leasing company, boasting a fleet of up to 8,700 vehicles in the country. As of July 31, 2020, GBFS has disbursed over S$777 million, maintaining a non-performing loan rate below 0.15%.
Goldbell Financial Services is dedicated to offering clients cutting-edge financial solutions. Their services encompass automotive, asset-backed, and working capital loans. Currently operational in Singapore and Malaysia, the company is strategically planning to expand its financial services to other markets, including Cambodia.
Goldbell Group, Singapore’s leading player in commercial and industrial vehicle leasing and distribution, has been a driving force in Singapore’s economic growth. For nearly four decades, Goldbell has provided comprehensive transport and logistic solutions, encompassing passenger and commercial vehicles and material handling equipment. The company’s diversified business portfolio operates under three pillars: distribution, leasing, and financial services. These divisions provide vehicle and equipment sales, leasing, financing, aftersales service, spare parts, insurance, equipment usage training, and fleet management services.
*Bell Auto has granted permission to share their profile in this announcement.