Asked by Anonymous
I have been using Funding Societies for a almost a year now, the default has gone down from 1% to 0.8%. As for my investments that i have done, it has all been paid but some have late payment. It’s best to put small amounts in every company listed to diversify and reduce your risk.
SSB/SGS, are very low risk as they are issued by the government. I would say P2P is not a very good alternative to SSB/SGS as P2P involves much more risk, put you savings in SSB/SGS, as for P2P set aside a small amount for high risk investing.
Everyone have their own definition of good. The most important thing is to do your due diligence to understand the platform to reduce risk. You should be asking if you are comfortable with the risk. SSB is lending money to government VS p2p lending, FS, is lending money to SMEs (mostly).
I would personally say the management team of FS is good and they r responsive and responsible with the updates of late repayment. From the late repayment, you can learn the nature of the business and the borrower. If u r uncomfortable with the borrower, opt out of their company next time.
I would encourage to try out and understand it. FS minimum deposit is $500 with each campaign mostly min. Of $20, default rate of 0.91%, lesser in SG. U can have a maximum Diversification of 25 campaigns. Let your overall interest rate is 10% p. A . Each campaign u earn $2. 25 campaigns u earn $50 profit (interest). U could risk at most 2-3defaults of campaigns to break even from your campaigns
(edited) you can go crowdfundtalks.com (FS forum). You could see some results by some kind investors. Most people there are Malaysians. Friendly people like seedly people :)
If you r comfortable with risk, the question to u is Y not?