Gabriel Tham

Tag Team Member at Kenichi Tag Team

29 Nov 2019

∙

General Investing

Are there different classes or seniority in p2p loans? For example in bonds, there are different classes which determine who receives the money first in event of default or liquidation?

Are there different classes or seniority in p2p loans? For example in bonds, there are different classes which determine who receives the money first in event of default or liquidation.

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Alex Chua

29 Nov 2019

Seedly student Ambassador 2020/21 at Seedly

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

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How do investors decide between different P2P platforms other than default rates and fees? Are platforms able to compete with each other through different product offerings?

Should I commit to clearing my reno loan (5-yrs) and hdb loan as soon as possible or use my cash on hand to invest in REITs, Bonds and/or FD first?

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