FAQ

Have questions? We are here to help.

Businesses

    We welcome conversations with start-ups, and consider each on a case-by-case basis. We look at a multitude of factors for evaluation that helps investors have a better appreciation of the investment deal that would arise from such conversations.

    We look forward to speaking with Medium-Sized Enterprises with robust Company Sales Turnover, or companies that are pre-IPO and not ready for public listing.

    This is considered on a case-by-case basis.

    Our turn-around time is dependent on the availability of information and complexities involved during the due diligence process.

    Businesses can leverage on SDAX platform to securitize real and financial assets into digital tokens for trading on SDAX.

     

    For more information, contact us at listing@sdax.co

    Consultation – Identifies issuance needs, and offers a customised listing strategy.

     

    Structuring – Advises issuers on optimum structures for tokenization, seeks approval, securitizes/tokenizes assets.

     

    Listing – Upon approval, the issuer’s digital security is listed on the Exchange, traded by investors.

     

    Custody – Fully licensed and compliant asset custody services to safeguard the issuer’s assets.

     

    Our team will evaluate to understand your organisation better and help you structure an issuance that fits your needs.

     

    Once you agree to proceed and submit the necessary documents, SDAX will launch the offering on the platform and investors can subscribe to it.

     

    For a pre-consultation, contact our SDAX listing team at listing@sdax.co

    The process will generally take between 6 to 14 weeks, depending on issuer’s readiness and the proposed structure of their digital securities listing.

    For a full list of requirements to become an issuer on our platform, please contact our listing team at listing@sdax.co.

    Personal documents are required for us to undertake “know your customer” (KYC) due diligence to enable us to know you and manage risk in a prudent manner. It allows us to identify you and verify your identity by using reliable and independent source documents and information.

     

    KYC is mandatory and forms an important part of safeguarding against money laundering and the financing of terrorism.

     

    As part of the KYC process, we will collect some personal data. This information will be used strictly in accordance with our Privacy Policy (which is in compliance with law and regulations).

    Only factual information will be shared with investors. A non-disclosure agreement (NDA) will be executed before sharing any information.

    The minimum loan amount is SGD 5 million. Our services are targeted towards Medium sized enterprises and above.

    Subject to the underlying requirement, the loan tenure is generally more than 12 months.

    Yes. SDAX will finance invoices based on a consolidated list and subject to strict due diligence.

    There are charges required for processing any fund raising request. Processing fees generally start from 3% of the amount of funds raised.

     

    Other applicable fees are applicable as per our platform services that entails listing onto our exchange. These will be advised on a case by a case basis.

    Considerations such as the tenure, type of loan structure, source of cash for repayment, historical track record of the company, and general macroeconomic factors will determine the actual interest rate payable.

     

    Businesses can expect to pay an interest rate that is influenced by prevailing market rates and investors’ expectations.

    Businesses should have an established profitable track record with a Sales Turnover of about S$25M and above.

    A personal guarantee is required for all Loan Requests except for Convertible Loans.

    A personal guarantee is also required to guarantee the repurchase of invoices pursuant to invoice financing.

    In order for us to assess your application, please submit the following documents:

     

    ● ACRA Business Profile;
    ● Memorandum & Articles of Association;
    ● Last 2 years’ Financial Statements, or Management Accounts where applicable.

     

    In addition, please provide details of your customer and expected invoice(s) value if you are applying
    for invoice financing.

    Once documents are submitted, we will contact you within 48 working hours to set up a meeting for us to meet you at your premises. This will form the first step of our due diligence process.

     

    During this process, we may request additional documents to assist us in assessing as the creditworthiness of your company.

    A business can make multiple Funding Requests at any time. The ability to do so will be determined by SDAX at our sole discretion.

    Information will include:

     

    ● Your company’s principal activities, purpose of the loan and source of repayment;

     

    ● Key terms of the Funding Request including loan size, tenor and interest rate;

     

    ● Any collateral to be provided to secure the loan;

     

    ● A description of your company’s profile as well as the guarantors;

     

    ● The main risks and mitigants associated with investing in your loan;

     

    ● Financial highlights of your company, including the preceding two years P&L Account and Balance Sheet (if available);

     

    ● Business plans, forecasts and projections.

    SDAX has in-house loan processing procedures to assess the viability of Funding Requests.

     

    Main considerations when approving a Funding Request include overall risk assessment, business track record and macroeconomic factors.

    The first mandatory reporting should be supplied from 12 months after the bond was issued or as at another date, as agreed with SDAX Exchange.

     

    Issuers can also publish reports more frequently, on a voluntary basis. Issuers are encouraged to report on the use of proceeds and impact throughout the duration of the bond up until maturity; at a minimum, issuers shall report up until the full allocation of proceeds.

     

    Accepted formats of ongoing reporting include:

     

    1. Dedicated use of proceeds reports.
    2. ESG/Sustainability reports featuring information on the funding behind the bond.
    3. Newsletters (or equivalent) giving appropriate information on the use of proceeds (projects, sectors, geographies, and expected impact).
    4. Impact reports.

     

    It is at the issuer’s discretion to choose its preferred reporting format, KPIs and frequency.

Account & Profile

    1) Click on ‘Forgot Password’.
    2) Enter your registered email address.
    3) Click on the password reset link sent to your email inbox.

     

    Feel free to email us at operations@sdax.co if you require any assistance.

    To update your email address, please contact us at operations@sdax.co

     

    To update your mobile number, log in to your account, click on ‘edit profile’ and change your mobile number.

    For Individuals, the following documents are needed:

     

    1) ID/Passport.
    2) Proof of Address.
    3) Bank Statement.

     

    For Corporates, the following documents are needed:

     

    Singapore Entity:
    1) ACRA and M&A.
    2) Directors ID/UBO ID.
    3) Organization Chart.
    4) Board Resolution.

     

    Foreign Entity:
    1) Certificate of Incorporation.
    2) M&A.
    3) Directors/UOB ID and proof of Address.
    4) Organization Chart.
    5) Board Resolution.

Getting Started

    We have a steady pipeline of unique investment products across different asset classes, that includes real estate, private equity, private credit, funds, exotics and luxury.

     

    For more information, click here.

    SDAX is a MAS regulated investment platform serving institutional, accredited and retail investors. We provide access to uniquely curated assets that are not available to most investors.

     

    Our strength lies in real estate, ESG and impactful investment opportunities. We also help companies and institutions to raise capital efficiently.

    SDAX is regulated by the Monetary Authority of Singapore (MAS) and held to some of the highest regulatory standards in the world.

     

    All clients’ funds are held in a segregated account with trusted banks in Singapore.

    SDAX is regulated by the Monetary Authority of Singapore (MAS) and has a Capital Markets Services (CMS) License and a Recognised Market Operator (RMO) License from MAS.

    Blockchain is a form of electronic ledger that records information and transactions of digital assets in blocks of data that are attached together in an order. These blocks of data are secured using complex cryptographic hashing.

     

    Before being added to the electronic ledger, each new asset transaction is verified by a network of computers, or nodes. A consensus decision must be made by the network to validate the transaction. Once a transaction is consensus-verified, it is added to a block of data, and the blocks are attached to each other in a chain.

     

    With every new block appended, the blockchain becomes a growing database of time-stamped digital asset transactions.

    Digital security tokens can be stocks, bonds, funds, and other financial securities that are digitized and recorded on blockchain. The creation of digital security tokens is through a process called “tokenisation” which is the representation of the ownership and related rights of stocks, bonds or financial securities on blockchain. The process of tokenisation does not create any new rights, but simply represents digitally, in an immutable and secure format, the ownership and related rights of the issued stock, bond, fund or financial securities instrument.

    Asset-backed tokens are tokens whose value is backed by a real-world, tangible asset which may include property, bonds, equity, art and more.

    No. SDAX does not currently offer cryptocurrencies.

    A security token is intended to be used the same way a stock, bond, certificate, or other investment asset is used.

     

    It represents rights of ownership, transfer of value, or promise of returns that are tokenized on a blockchain. A cryptocurrency is designed to be used as currency, money, or payment method.

    No, anyone can register with SDAX except residents of the US and sanctioned countries (like Russia)

    To sign up, simply register online by clicking the “Login/ Register” button on www.sdax.co. When sign-up is confirmed, submit your identification documents.

     

    Once your application is processed and approved, you will receive an email. For successful applications, you’ll be able to log in upon receiving the email.

    SDAX exchange is licensed by the Monetary Authority of Singapore (MAS) and one of the first Singapore-based exchange offering purely asset-backed digital securities.

     

    We have a robust backing from a strong sponsor group including ARA Asset Management Limited/ESR Group, The Straits Trading Company Limited (STC), and PSA International.

    For investments with Dividends or Coupons, you will receive the payout into your wallet.

     

    The Asset Value gain would be reflected as your token appreciates in value. Returns on investments would be at maturity or upon unwinding of your investment.

     

    When you sell your tokens on SDAX Exchange, the proceeds will be credited to your wallet automatically.

    The products available on SDAX Capital Markets are open to all investors, including retail investors.

     

    The products listed on SDAX Exchange are only available to accredited and professional investors and institutional investors.

     

    Please proceed only if you are either an individual with personal net assets in excess of S$2 million; financial assets (net of any related liabilities) in excess of S$1 million; or income in the preceding 12 months of not less than S$300,000, or a company with net assets in excess of S$10 million.

    All clients’ funds are held in a customer segregated account with trusted banks in Singapore.

    Deposits can be made via Bank transfer or wire transfer.

     

    Simply submit a request to make a cash balance deposit indicating the Funding Amount and the Specified Currency (Which will be the currency the Exchange accepts at the time as stipulated on the Platform). The cash deposit should be made in the same currency as the Specified Currency.

     

    Once the Exchange approves and processed the Deposit, the Exchange shall reflect the Deposit as a credit in the Cash Balances of your Wallet.

     

    Funds will normally be available in your account within 3 to 5 business days. Please note that the aforementioned time period on when funds are usually available is only an estimate and circumstances may exist which result in deposited funds not being available within the aforementioned time period.

     

    This may be due to a number of different factors, including the processing time of the sending and receiving bank. Please check your account by logging in to the trading platform for confirmation that funds deposited by you have been credited into your account.

    Trading fee is 0.2% of notional amount traded.

    You may trade once the funds are credited into the Cash Balances of your Wallet.

    No, SDAX Exchange operates on a private, permissionless blockchain network and Tokens that are listed and traded on SDAX Exchange are not available to be traded outside of SDAX Exchange.

    Token holders and prospective Token holders are advised to consult their own tax advisors as to the Singapore or other tax consequences of the acquisition, ownership, and disposal of the Tokens, including, in particular, the effect of any foreign, state, or local tax laws to which they are subject.

     

    In regard to the current tax laws, the Tokens are most likely expected to be treated as debt instruments for Singapore income tax purposes, with the result that Token Distributions are most likely expected to be in the nature of interest payments.

     

    Amounts received by the Company from Tokenholders in consideration for Tokenholders’ subscription(s) for Tokens shall comprise capital (and not income) for Singapore income tax purposes.

     

    Neither of these statements are intended or are to be regarded as advice on the tax position of any holder of Tokens or of any person acquiring, selling or otherwise dealing with the Tokens or on any tax implications arising from the acquisition, sale or other dealings in respect of the Tokens.

    1) Log in to your account and click on ‘wallet’.
    2) Click on ‘Initiate Withdrawal’.

     

    Withdrawals will be processed within the same business day if the request is submitted before 11am SGT. It will only be processed to the whitelisted bank account.

    • We are pleased to waive the withdrawal fee of S$40, until further notice.
    • Please note that UOB bank will charge a fee of S$0.20 for each GIRO withdrawal made to non-UOB bank accounts.
    • For Telegraphic Transfers (“TT”), a bank transfer fee will be imposed by our Bank for the remittance of funds. Please note that charges vary for country destinations.

     

    1) Log in to your account and click on ‘wallet’.
    2) Click on ‘initiate deposit’.
    3) Transfer your funds through your bank account registered with SDAX.
    4) Indicate the payment reference (Unique ID designated to each customer).

Investors

    If you wish to opt in as an Accredited Investor, please indicate that you are an Accredited Investor when completing your member’s verification form upon sign up.

     

    One of our team members will follow up with you to obtain documents to support that you meet either net asset or net income accreditation requirements. Once all is in order, we will provide confirmation that you are an Accredited Investor and will be shown the details of specific investments.

     

    If you have already registered as a member with SDAX, and would like to opt in as an Accredited Investor, simply contact your Relationship Manager or send an email to enquiries@sdax.co, indicating your interest along with attaching the relevant documentation required within the email.

     

    A personal Relationship Manager will be in touch to complete any other formalities that may be required once we have received your supporting documents within 3 business days.

     

    Do note that the confirmation will also be subjected to the results of “know-your-customer” (KYC) checks.

    If you are an Individual Investor, you have to submit supporting documentation to help our team to validate your status as an Accredited Investor.

     

    We accept Supporting Documents which indicate:

     

    (a) You have net personal assets exceeding S$2 million in value*, or its equivalent in a foreign currency (e.g. the value of the individual’s primary residence, net of any secured loan, can only contribute up to S$1 million of the S$2 million threshold);

     

    (b) You have net personal assets of more than S$1 million in value^, or its equivalent in a foreign currency, of financial assets (such as fixed deposits or investment products) net of any related liabilities; or

     

    (c) your income in the preceding 12 months is no less than S$300,000, or its equivalent in a foreign currency.

     

    (d) If you are already a private bank client or an Accredited Investor in a bank in Singapore, please submit a reference letter written on the bank’s letterhead to our team. Please note that this reference letter may be issued using your bank’s template. You may also use the following template here if required.

     

    * or its equivalent in a foreign currency (e.g. the value of the individual’s primary residence, net of any secured loan, can only contribute up to S$1 million of the S$2 million threshold)

     

    ^ or its equivalent in a foreign currency, of financial assets (such as fixed deposits or investment products) net of any related liabilities (e.g. your investment account statement issued in the last 3 months)

    If you are a Corporation (e.g. family office), you must submit valid documentation which indicates that the corporation is currently holding net assets that are exceeding S$10 million in value (or its equivalent in a foreign currency) as determined by:

     

    (a) The most recent audited balance-sheet of the corporation; or, where the corporation is not required to prepare audited accounts regularly, a balance sheet of the corporation certified by the corporation as giving a true and fair view of state the of affairs of the corporation as of the date of the balance sheet, of which the date shall be within the preceding 12 months; or

     

    (b) A corporation, the sole business of which is to hold investments and the entire share capital of which is owned by one or more persons, each of whom is an Accredited Investor. If you are able to invest with a minimum of S$200,000, then the above accreditation process would
    not be required.

    Accredited Investors are assumed to be better informed, and better able to access resources to protect their own interests, and therefore require less regulatory protection. Investors who agree to be treated as Accredited Investors therefore, forgo the benefit of certain regulatory safeguards.

     

    For example, issuers of securities are exempted from issuing a full prospectus registered with the Monetary Authority of Singapore in respect of offers that are made only to Accredited Investors, and intermediaries are exempted from a number of business conduct requirements when dealing with Accredited Investors.

     

    Investors should consult a professional adviser if they do not understand the consequences of being treated as an Accredited Investor.

     

    Some of the investment opportunities listed will have a higher transaction value and a higher minimum investment amount (e.g. S$50,000 or above).

     

    These investments are likely to be for a medium-to-long term hold (e.g. 12 ~ 24 months or longer). They would have a higher risk with higher returns on investments.

     

    These investments would be more suitable and offered to Accredited Investors and Institutional Investors. If you meet the accreditation requirements and are a confirmed Accredited Investor, you would be provided with the relevant information for such investment opportunities.

    You can opt-out to be treated as an Accredited Investor.

     

    However, once you have confirmed as “optout” (and even if you were a confirmed accredited investor), we will not be able to show you details of transactions that are exclusive for Accredited Investors and Institutional Investors.

    Yes.

     

    The qualifying criteria applies to everyone regardless of whether you are a resident of Singapore or of other countries.

     

    You must be confirmed as an Accredited Investor in order to have access to details of certain investments which are open only to Accredited Investors.

    Yes, you can.

     

    However, we still have to receive the relevant supporting documents to establish and confirm that you have met the accreditation requirements.

    Yes, as you are already a private bank client or an Accredited Investor in a bank in Singapore, a bank reference letter written on the bank’s letterhead will help expedite the accreditation confirmation.

     

    Please note that this reference letter may be issued using your bank’s template

    For self-declared Accredited Investors

     

    If you self-declare that you are an Accredited Investor, for compliance reasons, we still cannot treat you as an Accredited Investor because we have to complete the accreditation process.

     

    This also means that for compliance reasons, we will not provide you with the details of the investment offerings that are exclusively for Accredited Investors. Instead, if you wish to receive details of such investment offerings, we can share details with you on a request basis. If you would like to invest in any of these investment offerings, you will be required to invest with a minimum amount of S$200,000 (dependent on deal). If you are a Confirmed Accredited Investor, then you can invest with a much lower minimum amount.

     

    To clear any doubts, having invested with a minimum amount of S$200,000 will not automatically convert you to a Confirmed Accredited Investor.

     

     

    Confirmed Accredited Investors

     

    You will become a Confirmed Accredited Investor after you have submitted the relevant documents to satisfy the accreditation requirements. Once all is in order, we will confirm to you that you are a Confirmed Accredited Investor. It also means that we can then show you the details of the investment offerings that are exclusive to accredited investors and institutional investors only. In some investments, the minimum amount of investment for Confirmed Accredited Investors can be as low as S$10,000.

    Retail Investors do not pay any fees for participating in the Funding Requests or for using the platform.

     

    However, a service fee of 15% will be levied on interest, factoring fees, and any other fees earned by investors. All interest rates quoted on our platform are on a gross basis and payable to the investors to after deducting the service fee. There may be a small transactional fee imposed by the bank when withdrawals are made.

     

    The fees chargeable are specified on the Funding Requests documents.

    Details are kept private and not disclosed to businesses.

     

    However, your details are shared with the Escrow Agent as they will need to perform “know-your-customer” (KYC) checks as well as manage the movements of your funds.

    Risks for each investment will be disclosed in the offering documents and information memorandum for each transaction.

     

    Please refer to the general risk disclosure on the SDAX Platform in respect of investing on the SDAX Platform (to link when legal docs are done)

    Investors’ risk in making investments through our platform generally falls into the following categories:

     

    Credit Risk
    This covers the ability of businesses to repay their loans on a timely basis. While we do not provide a recommendation on the creditworthiness of businesses, we will undertake due diligence on all businesses to determine their ability to repay promptly. Only businesses whom we believe can meet their obligations on a timely basis will be allowed to post a Loan Request. Apart from protecting investors’ interests, this also protects our reputation as a peer-to-business lending platform that delivers quality deals. Businesses will have access to our deep structuring capabilities, understanding of cash flows, and credit analysis processes to ensure that the loans they raise have the best chance of repayment. This helps the investors in terms of managing default risks.

     

    Operational Risk
    Your money is maintained in a bank account controlled by a MAS-licensed trust company, Vistra Trust (Singapore) Pte. Limited (“Vistra”). Risks associated with transactions carried out through the platform are mitigated by using a developed and tested platform built by developers, who are experienced and have delivered dozens of such platforms to operators around the world. Your data is kept securely through our platform, which is hosted by Amazon Web Services in Singapore.

     

    Legal Risk
    Our Platform Terms, which include the agreement between investors and businesses, are documented by reputable financial lawyers to ensure that investors’ interests are adequately covered and clauses covering various situations are clear and unambiguous.

    There is no physical signing of contracts.

     

    By clicking and agreeing to our Platform Terms, you are bound by the terms governing businesses and lenders.

     

    This has the same legal effect as signing a contract.

    Subject to funds being available on your Platform Account, you can participate in any of the live deals by selecting them and completing a few simple steps.

     

    Once an offer has been submitted, your funds in your Platform Account will be earmarked for that particular Funding Request and will no longer be available to be used to make another offer or be withdrawn from the Platform Account.

    Yes, you can make an offer for multiple Funding Requests.

     

    The acceptance of your offers is subject to the availability of funds in your Platform Account and other conditions set out on the Platform Terms.

    To ensure that all parties are committed to the transaction, once an offer has been made for a Funding Request, it cannot be cancelled.

    The amount that you have earmarked for the particular Funding Request will be returned to your Platform Account.

     

    You can then use the money to participate in other Funding Requests.

    We have been advised that investing in Loan Requests via our platform will not contravene the Moneylenders Act.

     

    Participating in invoice financing is essentially the purchase of invoices and as such, the considerations of moneylending are not relevant.

    You can contact us with any questions that you may have in respect of a particular Funding Request.

     

    We will answer your questions and, where required, seek the business’ input.

    The main currency for investments on the SDAX platform is Singapore Dollars. For these SGD-denominated investments, currency risks are hedged to ensure investment returns are not affected by fluctuations in the currency markets.

     

    Some investments may be offered in foreign currencies. Please be aware that your returns may be affected by fluctuations in currency markets if you elect to invest in investments denominated in foreign currencies.

    You will earn interest and fee income from the investments that you make on our platform.

     

    While S13(1)(ze)(i) of the Income Tax Act would generally apply to interest payments on debt securities arranged through the platform, where such debt securities are loans/debentures/bonds, however that responsibility eventually still lies with each investor to make their own tax assessments and take their own independent tax advice as SDAX is not able to give tax advice.

     

    You should consult your tax adviser if you are unclear about your tax obligations. If you are a non-resident in Singapore, you may also be subject to withholding tax on the interest or fee.

    No investments are free from risks.

     

    Loans are generally safer investments than equities. However, there will be situations where the businesses are unable to pay on time or may become insolvent, resulting in their inability to repay the loan. In such situations, steps will be taken to recover the amount outstanding. These debt recovery provisions are set out in our Platform Terms.

     

    It is important that Investors exercise caution and diversify their investments widely so that any defaults by businesses would account for only an acceptable percentage of their total investment portfolio.

     

    Invoice financing is predicated on the credit risk of the client’s customer (i.e. third-party buyer). Typically, the third-party buyer will be of a better-quality credit risk than the client.

     

    This allows the client to access funds at a lower rate than if they were to take a working capital loan using their own credit standing. While the third-party buyer’s credit quality may be better, there could be situations where the third-party buyer may not pay the invoice (e.g. insolvency of the third-party buyer).

    Yes.

     

    The minimum investment amount varies from transaction to transaction and depends on the asset class type.

     

    For Corporate Investments, the typical minimum investment amount is $5,000 although in certain situations the minimum investment amount may be higher or lower. Generally, additional investments can be made in multiples of $1,000 depending on the minimum set for the particular Funding Request.

    The rate of return of a particular investment very much depends on the type of financing, the tenor of the financing, and the quality of the counterparty.

     

    Generally, you can expect to earn between 3% – 15% per annum although in certain situations interest rates or returns may be lower.

     

    At SDAX, we seek out better-quality businesses as we aim to be a true alternative to conventional financial institutions. Interest rates payable on these financings will be commensurate with the credit risks associated with the business or the customer in the case of invoice financing. As such, you may notice that interest rates on offerings posted on our platform may be lower than others.

     

    We also bring quality structuring and credit analysis expertise to all the deals we consider for posting on the SDAX platform.

    Businesses typically make their loan repayments on the due date and at times, the next day.

     

    This is the nature of the SME environment where cash is managed to the day. In exceptional situations, loan repayments may be made before the due date.

     

    There are a number of reasons why a loan repayment may not be made on the due date. When a loan repayment is not made on the due date, SDAX will actively engage the business to encourage them to make the payment as soon as possible.

    We will work with the business to find a satisfactory solution to repay the amount outstanding, if this fails a debt collection agency may be appointed to recover the outstanding amount.

     

    Notwithstanding the above, you will have direct recourse to the business and the personal guarantee(s) that was(were) provided as part of the loan.

    Invoice Financing refers to the raising of financing by companies using the invoices that are issued by a supplier to a buyer for the supply of goods or services.

     

    Invoice Financing helps companies to secure cash immediately and hence, improving cash flow for working capital and growth purposes rather than waiting for their customers or buyers to pay them in the future.

    A secured deal means that the repayment risks are in part mitigated by the creation of security interests over certain assets.

     

    In real estate financing, the common types of securities include mortgage over the property, assignment of current and future income, and charge over a bank account.

     

    Where the deal is a mezzanine debt, security may rank second to senior lenders which are typically financial institutions.

     

    In case of a default in repayment by the ultimate Borrower, these securities can be enforced so that the asset value can be materialized into cash and redistributed back to the Investors.

Still have more questions?

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