Alex Chua Cheng En - Seedly
 
Alex Chua Cheng En

Eager learner of investment (learn it for 6 months). Have been playing with p2p lending platform (funding societies) for 4 months

Alex Chua Cheng En

Pcme at Anderson Junior College

About

Eager learner of investment (learn it for 6 months). Have been playing with p2p lending platform (funding societies) for 4 months

Credentials

Alex Chua Cheng En's credentials are not filled up yet.

Alex Chua Cheng En

Pcme at Anderson Junior College

  • Answers (49)
  • Questions (4)
  • Reviews (2)

SeedlyTV EP07

P2P Lending

Investments

I will just comment from what I know. I have just experienced my second defaults and have yet to retrieved them. There is no priority or anything for funding societies in case of defaults.. The money will be returned to those who participated the legal cases, followed by non participant. For p2p, I would refer to type of loans rather than classes of loan. Most are business loan or invoice financing or property - backed loan For minterest, have 'insurance-linked' loans For funding society, there is capital guarantee loan

SeedlyTV EP07

P2P Lending

Google or ask search in seedly

Investments

Savings

Crowdfunding mainly covers 3 parts : project crowdfunding (kickstarter), equity crowdfunding, and debt crowdfunding (p2p lending) Adding on to what Kelly mentioned: When I read your given website, there are a lot of questions left unanswered. There is no strong credibility of how the things work. What is PARF? Why and how is it capital guarantee? How does this scheme earn money? Where does l the money come from? I don't see how you can earn the 5%. If you cannot answer this question in one sentence, this is clearly too good to be true. Who is the one holding this scheme? What is his credibility and history that meet this criteria of the scheme? All I can see is flowery and attractive words. If you want to know and research more about crowdfunding, go take a look at what is already available, backed and legalised Project crowdfunding : kickstarter Equity crowdfunding : fundedhere Debt crowdfunding : p2p lending (info can be found in seedly, read the reviews and learn how the platform works)

SeedlyTV EP07

P2P Lending

Everything is possible. How detailed you want is very questionable. I would not want to read a 100 pages fact sheet just like reading annual reports in listed companies. As long as the fact sheet is enough for me to understand if the borrowers have the ability and willingness to return the loans. Also, if you want a very detailed factsheet, the fees will also be compromised. Transparency of the fact sheet of the P2P borrowers has been yearned by the the investors. There needs to be a compromise. If the P2P borrowers are not willing to make known of their companies to the investors, little can we do. I believe that Kenneth, funding societies, in seedlyTV EP07 has mentioned a unfortunate cases of a borrower wanting to pull out a borrower stories/video. The borrower's cilent is not willing to work with him because the funds outsourced are not from banks, and thereby illegal debt. Thus, I would like question if all debts are bad? And if we, a legal citizens in Singapore put in "dirty money"? The negative stigma of debt may bring more opportunity cost for business than borrowing. Left with no choice, they would want the p2p platforms not to disclose their infomation. Back to your question, I would still say yes. However, it is not possible if the borrowers wants to protect their identity, Hereby, I would appeal to the borrowers benefited by the P2P platforms and the communities to give a testimony how you have gained from these fintech platforms.

SeedlyTV EP07

Investments

P2P Lending

The liquidity of funds entering into your P2P platforms: These can give you an edge if there is a loans that attracted you. Words of advice: Put a limit to how much you put in each loans. Dont complain when it does default Most takes about 3-7 days based on the platforms. Platforms has the capacity but may not be motivated to shorten the duration as their loans issued maybe 1 per week, etc Credit scoring system/ Fact sheet: I believe this is self-explanatory. Choose the one to your preference. If you do not know about economics at all, some platforms' factsheet are infomative enough to explains the strengths and weakness of the companies Customer Service: I believe that service outweighs technology, despite the fact that goes hand in hand. I see this as an alternative banking/ credit services. You need to understand the borrowers' needs so that you can gain relevant advice for people to trust and continue to use the platform. For investors, you may have queries with the loans issued. The quality of services could affect your decision-making. There may be areas you want to see in the platforms. Feedback. You can easily see if the platforms are serious with what they are doing. Responsiveness : Closely related to customer services. Community vs individual platforms to feedback and ask questions

SeedlyTV EP07

P2P Lending

Investments

Take a look at their methodology in issuing the loans. Different companies have different methods to mitigate losses. I remember Mininterst is compulsory to have a guarantor For funding societies, it varies

SeedlyTV EP07

P2P Lending

I say yes. Accredited investors are found in p2p platforms and some platforms provide bonus for these investors. Sponsors maybe the Angel investors/ venture capital who give them relevant series fundings (with objective) Insitutional investors: There are. I can't remember any example. I ask them about it during the fintech festival. Maybe DBS??? DBS has collaboration with funding societies.

SeedlyTV EP07

Investments

P2P Lending

General

There is no formulated martrix for p2p investments yet. Maybe a kind soul can start to create one. In my opinion, for platforms you can take compare: 1)annualised Rate of returns VS default rate 2) Rise of funds issued vs % of successful repayment - More loans issued = more loans Choice = more room for diversification 3) Credit scoring system (FACTSHEET) As for individual loans, you can look at , 1) Cash Flow 2) Leverage ratio/ cash ratio 3) Equities - Liabiliities Ratio (my personal preference) / Current ratio 4) trends of net profit/ gross profit 5) Simple interest Rate it is closely related to the platform credit scoring system. Technically, the higher the interest rate, the higher the risk. P.S google the terminology or refer to Brian post

SeedlyTV EP07

P2P Lending

Alex Chua Cheng En
Alex Chua Cheng En, Pcme at Anderson Junior College
Level 5. Genius
Answered on 09 Nov 2019
If you want to know how reputable listed company or blue chip comany are involved in p2p platform, I have some answer: 1. Funding societies are collaborating with the banks to help SMEs provide micro-loans. Seedin are also in partnership with OCBC bank 2. The owner of the invoice finance by a borrower is from SembComp, MBS,etc. Thus, the borrower may have late repayments may not be because of themselves but the credit partners the borrower are working with

SeedlyTV EP07

P2P Lending

Alex Chua Cheng En
Alex Chua Cheng En, Pcme at Anderson Junior College
Level 5. Genius
Answered on 09 Nov 2019
Every P2P platforms have their own unique credit risk assessment but still fundamentally, they are the same such as IRAS, site visiting, check their cash flow ,etc. Still, as a lender, we have the choice to diversify and not overload on a borrower. I usually overload when my values and checks are in line with the borrower so it will be great that borrowers are willing to be more transparent in their business. This is so that the lender are more willing to place the $$ with you, knowing that you will make good use of the money borrowed
Load more questions
Level 5. Genius
199PointsGoal 250
51 POINTS TO LEVEL UP
Browse Rewards