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P2P Lending

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SeedlyTV EP07

Investments

P2P Lending

Capital Match

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Funding Societies

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JE
Jamie Evans
Level 2. Rookie
Answered 2w ago
Margins are compressing due to competition. The platforms need to be innovative in terms of origination of assets (see Capital Match’s merger with procurement platform, Sesami). But ultimately, Singapore will be too small a market and overseas expansion is the only card to then play...or become a digital bank for SMEs

SeedlyTV EP07

P2P Lending

Adrian Goh Jun Wei
Adrian Goh Jun Wei, Product at Nodeflair
Level 4. Prodigy
Answered on 05 Jul 2019
Regarding the questions on why they don't raise money from VC/Angels, one of the reasons is that VC themselves have their own investors to account to and are looking for businesses with 3-5x ROI (or even way more). Unless a company has a potential to deliver that ROI, it is highly unlikely that VCs will provide funding to them.

SeedlyTV EP07

P2P Lending

Usually, for P2P, you are required to put 1 guarantor, which would usually be yourself - that means in the case where the company has no funds, you are the one who is supposed to use your personal funds to return. I assume you already know all these - so what happens when you can't pay back? It depends on the loan amount usually - there is a chance where you will face legal action. it all depends on the amount, and whether the company thinks it's worth going through the legal route to claiming back their money. Either way, your CBS rating (Credit bureau) will take a hit, and you will not likely be able to secure loans in the future.

SeedlyTV EP07

P2P Lending

The banks would make you do a very detailed financial review before lending you money =) Collaterals for company assets are secured loans. For unsecured loans, the banks would not ask for collaterals from personal assets. In those case, it is probably customised loans by the requests of the directors, and the amount must not be small (to justify the legal documents and workings of the loans) Secured Loans like mortgage loans, invoice financing (to buy goods) 1. low interest rates 2. maximum abt 80% of the value of the collateral (the property, for example) 3. directors act as guarantors Unsecured business loans 1. higher interest rate 2. Up to an amount that the bank provides based on your monthly revenue and profits. They will go through all the bank account statements of your past 6 months. 3. Directors act as personal guarantors too If you are unable to pay secured loans, they will proceed to seize the collateral. If its unsecured loan, they will start legal proceedings on the company first, and then if the assets are not enough, it will move on the directors. It is actually in the interests of the borrowers for bankruptcy, NOT in the interests of the banks. Banks don't like you to be bankrupt, as they lose their money. Borrowers won't go for bankruptcy if the amount is small (not worth the loss of freedom).

P2P Lending

SeedlyTV EP07

Investments

The P2P company did the heavyweight lifting of checking up the companies, their repayment scheme and the possibility of the default. But still, it's just a Facilitator for peer, to, peer lending. Hence they are not liable unless sufficient evidence is withheld (material facts) that could lead you NOT to invest in the particular deal (which is very rare based on the fact they do their due diligence).

SeedlyTV EP07

Investments

P2P Lending

Not so sure about every sector but I have a phobia of the retail industry, and even F&B. The rental is still sky-high. And the amount of store shopping is declining as we speak. Ecommerce is growing faster and eating away the joys of retail.

SeedlyTV EP07

Loans

P2P Lending

I placed a small amount of my "war chest" (money I saved as to be more liquid to buy stocks when a big market correction arrives) in them for 5% pa. https://timelyenterprise.com.sg/better-returns-than-singapore-saving-bonds-similar-risks/ to reduce misunderstanding, I will not be seeking any referral fees (if you read the blog post, you know what I mean). I placed because I want a slightly higher return and I want the money to be readily available within 3 months. Just read the post and do your own due diligence

Funding Societies

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Loans

P2P Lending

Promo Codes

Yingying Li
Yingying Li
Level 2. Rookie
Updated on 07 Jun 2019
Hey there! This is Yingying from Funding Societies. Unfortunately we have regulatory constraints to openly share referral codes :( Do still sign up with Funding Societies though! We have promotions which are exclusive to our investors on a regular basis.

SeedlyTV EP07

P2P Lending

Loans

Investments

Alex Chua Cheng En
Alex Chua Cheng En, Pcme at Anderson Junior College
Level 4. Prodigy
Answered on 11 Sep 2019
P2P lending intentions are to serve those that are underbanked. Making collateral compulsory will make access to loan with higher barrier to entry. Businesses with intention to expand yet no collateral will be undermined. Of course, loans with collateral is appreciated. Instead, interest is reduced. Thus p2p platform has to use other matrixes to evaluate companies without collateral. What services are given to prevent companies to default? What to do if companies were to default?. Investors need to understand that p2p lending is an unsecured loan. How do we diversify risk? How do we better support these companies and who do you want to help? Ask yourself more questions to better understand p2p lending and better take advantage of the platform

SeedlyTV EP07

P2P Lending

General

SY
Samuel Yip
Level 3. Wonderkid
Answered on 27 Jun 2019
Platforms such as Moolahsense and Funding Societies have settings to allow users to choose sectors and maximum lending amounts. It holds significance as returns can be as high as 8 per cent per annum.
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