Faced with insolvency, a business owner teamed up with investors from FundIn's network to repay its near-term debt in exchange for majority control of an asset.
|RM 2.08 million||RM1.1 million|
|Gathered with assistance from FundIn||Return on investment|
Malaysia has in recent times suffered from cooling consumer sentiment, restrained financing activities, and oversupply in the property market. Tighter operating conditions have made it difficult for smaller businesses to repay existing debt or seek refinancing options. One of these business owners turned to FundIn for help. It owed its financiers more than 2 million ringgit in outstanding repayments and creditors were about to ring the auction bells.
"Time was ticking for us. Our asset was of high quality but we were simply unable to make repayments in the current environment. FundIn's network of investors saved my company from bankruptcy just in time."”
Managing Director and Owner of Commercial Lot
Raising Funds Through FundIn's Network Of Investors
FundIn's team of business and finance experts connected the business owner with a selected group of venture capitalists who were willing to step in. The deal both parties reached ensured the asset owner achieved its repayment requirements. In exchange, the venture capitalists obtained 90% ownership of the land asset.
Having secured funding, the business owner paid off the 2 million ringgit loan, avoiding a potential bankruptcy. Investors benefitted from an 8% yield on rentals from the property for over a year. After about 12 months, they sold the parcel of land for a RM600,000 profit. This transaction yielded quick gains not only for investors but also the business owner, who made disposal gains on its remaining 10% stake in the asset.