The small business lending space has another player on the block N1 Holdings (ASX: N1H). This morning the company announced it has secured $10 million for small business lending.

Of this, $3.8 million came from N1H’s own funds and $6.2 million from a fund operated by the company. The latter figure was raised in the first three months of its operation.

  • Scroll down for more ASX corporate news>>>

While the company will continue to raise money through investors and is targeting $25 million, the business was proud of reaching the $10 million milestone.

N1H CEO Ren Hor Wong said: “We are pleased to be reaching the milestone…Our focus is to continue the momentum by raising further capital.”

Although N1H only has a market cap of $8.2 million, Wong said the company could lend out money without increasing operational costs.

“We have developed the infrastructure and internal systems to be able to deploy more capital while maintaining appropriate risk control mechanisms.”

He also noted it only lent to businesses with assets it could take security over and stays clear of construction and property development businesses. The average loan size is currently $478,000.

While the company has lost $38,000 to date in the 2019 financial year, its most recent quarter had a positive cash flow of $321,000.

Shares opened unchanged this morning at 10 cents.


 

In other ASX small cap corporate news

West Australian nickel miner Mincor Resources (ASX: MCR) are working with BHP on an off-take and purchase agreement for its nickel. Having previously signed a term sheet in March, the company told shareholders negotiations were going well.

This was despite the completion deadline of two months being extended to July 18. The company said this was just to finalise the agreement. Shareholders were told the initial timeline was ambitious and more time was needed to finalise the agreement adequately.
 
Blockchain play YPB Group (ASX: YPB) has been reinstated to trading this morning after being suspended for more than a month while ASX queries were being resolved. The ASX was most irked by YPB’s now retracted statement, “YPB has received ASX approval to issue a digital currency token”, when it had not.

Additionally, the ASX had a series of questions about the fees, legal requirements and progress of YPD’s deal to create new digital tokens. Having reinstated the stock, it can be presumed the ASX was satisfied with YPB’s responses but shares still fell 22 per cent at the start of trade. The shares of its MOU partner First Growth Funds (ASX: FGF) remain suspended.