[Event Series] Mr Steven Ling Shares Some Insights On The Transportation Industry During EPIC KL 2015

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The recent Expo for Property, Investing and Crowdfunding or EPIC 2015 saw many experts as well as some of the most respected names in the business industry sharing valuable insights to expo attendees. The property, investing and most especially the crowdfunding space are some of movers and shakers of the business sectors and the event couldn’t have been more timely.

Crowdfunding encompasses both property and investment sectors as it is already giving traditional lenders a run for their money. Size and scale are still no doubt with the banks and venture capitalists but social funding is starting to carve up a niche in the financial world. They are mostly serving startups as well as small and medium-sized enterprises in their quest to raise up initial capital for a business endeavour.

This is where Mr Steven Ling comes in where he was able to share the ins and outs of how investments plays a role in a private transportation business. Mr Steven Ling is the chief executive officer and a director for Credo Investments (S) Pte Ltd. He oversees the operations, corporate finance as well as fundraising for the company which give him a unique insight and perspective that he can share in the expo.

Private transportation sector

stevenLingMr Ling started out by saying “transportation addresses the need of the people.” It is one of those industries that consumers can directly benefit from much like the food industry. Transportation is something that people need on a daily basis as they move from one place to another whether it is for an office meeting, a family gathering or just visiting people.

He later on shares how their business model can be likened to an Airbus plan that depends on two engines to run safely. When one breaks down, they still have another one to depend on much like a plane engine. Their business model depends on two pillars  – the buses that provide the business itself and a ticketing business to complement and augment their income.

Mr Ling also points out some very important factors in making their business succeed and grow. One is understanding how to price their average service fee per trip for their bus fleets. This is the amount that passengers have to pay for being transported from one point to another. This then becomes their gross income where all computations would be generated from.

They also have to understand and be very on point with their average operation as well as their depreciation expenses. These are the ones that will always eat away on the gross income for any business model. This is most helpful when the core area of the business deals with assets that depreciate over time. In their case, their buses depreciates during the course of use whether from wear and tear or simply getting old as time passes by. There has to be contingencies in place to make sure that they get to address repairs or replacement of the units as needed.

One very important factor that Mr Ling pointed out was the credit terms being offered by companies they work with plays a big factor in choosing who they work with. A credit turnaround of about 30-60 days is ideal and any more than that shows that a company has a problem with their cash flow. Regardless how good the business is, cash flow will play a big part at the end.

Crowdfunding plays a big part in the growth of businesses even those in the transportation industry because the company gets to raise the funds they need from their market itself. Their riding public gets to be just a passenger but an investor as well. The platform allows ordinary people to earn off of the business through investments.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

 

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