Funding Societies

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Funding Societies
  • Asked by Alex Chua Cheng En

    Isaac Chan
    Isaac Chan
    35 Answers, 58 Upvotes
    Answered 5d ago
    In essence, P2P lending serves a market of companies that cannot get financing from banks because they are (a) too small (b) too weak financially or (c) too new (no track record). Basically, it would be too risky for the bank to take on these firms. Regardless, a financial crisis is likely to affect all companies, but of course at different extents. During a financial crisis, debt financing would be more challenging to get from the banks, especially with one like the '08 crisis that was related to credit strenghts and ratings. I suspect these 2 phenomenon might happen... (1) More firms move to P2P to seek debt financing . Firstly, because banks are not financing them anymore, and secondly because their cashflows are affected by the crisis such that they would need alternative sources of funding to continue operations. (2) Liquidity for financing drops . The bearish market sentiment will likely cause more retail investors in the p2p space to invest less also. This means that more loans would go unsubscribed and borrowers may not be able to seek the financing that they require In essence, demand for p2p financing increases (more firms seeking loans) while supply of p2p2 financing decreases (fewer retail investors). This will probably cause loans to go unsubscribed , but would likely have the impact of causing interest rates to rise based on the forces of demand and supply (so that fewer firms turn to p2p and more retail investors turn to p2p) Cost of debt would therefore increase for firms, while investors have more alternatives to seek high returns.
  • Asked by Anonymous

    Yeo Enk Loui
    Yeo Enk Loui
    5 Answers, 17 Upvotes
    Answered 2w ago
    Personally, I am a small retail investor in Funding Societies, having invested approximately $500 in the platform. I think it is good in the sense it gives you a relatively high return (~10% on average) for your investment (assuming the firm does not default on its loans) and hence this could be a stable source of passive income. Having said that, some P2P lending platforms diversify the investor's risk by limiting the maximum investment from each investor (For example: An investor may be only to invest up to $50 for an Invoice Financing with a loan tenor of 90 days @12% returns per annum). This equates to an approximate return of $1.50 in 3 months and if you think about it from a liquidity perspective. While the annualised return seems attractive, the actual benefits are only "realised" when you invest in a substantial amount of loans on a continual basis. Given the illiquid nature of the loan, while it may "good" in terms of diversifying your portfolio, it can be perceived as "bad" as it means forgoing the opportunity to indulge in say $50 of whatever you love for the next 3 months and getting a mere $1.50 (before accounting for administrative fees).
  • Asked by Anonymous

    Adrian Goh Jun Wei
    Adrian Goh Jun Wei, Product at NodeFlair
    17 Answers, 32 Upvotes
    Answered on 19 Jan 2019
    Initial deposit if $500. Minimum investment amount differs for each campaign, but $20 is the lowest.
  • Asked by Anonymous

    Gabriel Lee
    Gabriel Lee
    366 Answers, 557 Upvotes
    Answered on 14 Nov 2018
    You can consider using Funding Societies (FS) as they have a pretty good track record of on time repayment and low default rate. You can check out their statistics and our community's experience with FS in the link below. As for regular investments with FS, you can make use of their Auto-Invest function which allows you to choose the type of loan and amount that you would like to invest. Then when a new loan is available and matches your criteria, funds will be allocated to that loan automatically. You can also choose to opt out of it. Read more here - http://nerds.fundingsocieties.com/launching-auto-invest.html https://fundingsocieties.com/progress https://seedly.sg/reviews/p2p-lending/funding-societies
  • Asked by Anonymous

    Jay Liu
    Jay Liu, Diploma in Accountancy at KHEA
    193 Answers, 345 Upvotes
    Answered on 04 Sep 2018
    Started about 2 months ago. Currently invested in 9 loans (8 invoice financing + 1 business term financing). Total invesment: $800. Took out $200 as loans on funding societies has pretty low volume. Which is a positive, proving that they really screen the borrowers thoroughly. So far, only 3 loans has been completed. (2 invoice financing paid on time. 1 invoice financing paid partial early repayment). As invoice financing has the option for borrowers to repay early, to encourage them to pay early for lower interest. Thus, we will get lower interest too. Looking at the company's financials is also important before you invest. Don't catch a falling knife.
  • Asked by Jay Liu

    Kelvin Lee Kok Tat
    Kelvin Lee Kok Tat
    1 Answers, 4 Upvotes
    Answered on 06 Oct 2018
    Hi Jay, I am invested in FS Singapore, FS Malaysia and 2 other platforms in Indonesia. You can refer to this link for more information. :) https://crowdfundtalks.com/topic/188/p2p-lending-platforms-in-indonesia https://crowdfundtalks.com/topic/327/p2p-lending-13-months-in Cheers,,,
  • Asked by Anonymous

    Vikas Jain
    Vikas Jain
    2 Answers, 3 Upvotes
    Answered on 13 Jul 2018
    Thanks for your question! We’ve addressed it during the event, but sharing the details here to benefit the Seedly community members who may not have attended the event :slightlysmilingface: When a company with debts declares bankrupt, the official assignee will prioritise the debt claims based on the seniority of the debt. Usually loans backed by collateral (secured loans) are considered senior to the unsecured debts (without any collateral). From an investor’s perspective secured debts like property backed loans are therefore lower in terms of returns compared to unsecured business term loans.
  • Asked by Anonymous

    Vikas Jain
    Vikas Jain
    2 Answers, 3 Upvotes
    Answered on 13 Jul 2018
    From investors’ perspective platform should take action even if there is delay of 1 day in repayment. Default is triggered once the loan crosses a certain number of days without repayment. For Funding Societies Business Term Loans are considered and property loans are considered to have defaulted if there is no repayment received for 90 days on a particular loan. For invoice financing its 60 days. These norms are framed through best practices, very similar to what banks follow. However, the default categorisation may vary from platform to platform. Also, each platform has its own process of dealing with delays and eventually defaults. At Funding Societies the debt collection process starts with follow up by Relationship Managers followed by in-house debt collection and if situation requires then we engage professional debt collection services (similar to banks) and in certain situations even legal action.
  • Asked by Anonymous

    Gabriel Tham
    Gabriel Tham

    Top Contributor (Jan)

    421 Answers, 749 Upvotes
    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

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