facebookIs it advisable for newbies with no investment experience to try P2P Lending (e.g Funding Societies)? Anyone using the platform can share their experience (returns, default rates)? Able to recover your capital if there is default? - Seedly
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Anonymous

Asked on 16 Jun 2018

Is it advisable for newbies with no investment experience to try P2P Lending (e.g Funding Societies)? Anyone using the platform can share their experience (returns, default rates)? Able to recover your capital if there is default?

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Answers (9)

Jacky Yap

Jacky Yap

Level 5. Genius

Updated on 07 Jun 2019

hello!

Yes i think it is ok. p2p lending is run by experienced team who will screen all the loans before they take them in and open the loans to public investors. im not in the p2p business but i think this is the process:

1) loan application by SME from P2P

2) P2P platform screens, does audit of the SME's business and determines risk and suitability + loan quantum

3) If business is sound, P2P approves the loan, if it is a bad business, P2P platform wont approve

4) Once loan approved, P2P platform publishes the loan and avails it for investment by public investor

5) public investor can take a look at the summary of the SME, the risk assessment and decides if he wants to invest in the SME's loan.

So you can choose which business loan you want to back. And you can choose the amount.

It is also in P2P platform's interest to ensure that the default rate is very low so that investors will continue to invest, because a bad apple will really break investor's confidence in the P2P platform. Funding society's default rate is <2% overall so is actually not that bad.

For me, ive been on Funding society for almost 1 year now, no defaults so far. Returns should be around 7-9% after deducting the fees by funding societies.

Overall experience is not bad, would personally recommend it for investors with medium to high risk profile. :)

1

Jacky Yap

Jacky Yap

18 Jun 2018

oh sorry to add on - if there are any defaults, you will lose your capital.

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

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Gabriel Tham

Gabriel Tham

Level 9. God of Wisdom

Answered on 17 Jun 2018

As always one must account for the risk involved. In this case of P2P, can you accept that you may lose all your capital?

When a default occurs, there is a chance you might not get back your capital at all.

You can check out some reviews here:

https://seedly.sg/reviews/p2p-lending

0

Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about

Post

Funding Societies Singapore

Funding Societies Singapore

Answered on 15 Oct 2020

**Hi there, sorry for our delayed response as this question just came to our notice. Our response ti...

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