Small and medium enterprises (SMEs) will be able to receive payments faster through a virtual credit card solution which facilitates cash flow to businesses. Developed in partnership between credit card company Visa and FinTech developer Validus, the payment solution is the first of its kind in Singapore, and seeks to unlock capital for SMEs to reinvest in their products and services, according to a press statement by the two firms.

Through a “securities crowdfunding platform”, Validus works with Visa to facilitate immediate cash flow to SMEs who have unpaid invoices in their payment cycles. Using a risk algorithm, Validus evaluates the creditworthiness of the SME as well as its invoices, sidestepping banks and financial institutions. By going directly to investors who can decide on their risk appetite, the system matches lenders to SMEs.