SeedlyTV EP07 - Seedly

SeedlyTV EP07

Have you considered adding P2P lending to your investment portfolio? Join us here on 27th June, 8 - 9pm!

ASK A QUESTION

"How does it work? Is it safe?! How much should I invest monthly?" We gathered these P2P Lending founders all in one room to answer your burning questions. If you missed it, you can find out what was covered here!

  • What's happening at Seedly-- 0:40-2:15
  • Introduction of the 4 P2P Lending companies on board-- 2:40-8:40
  • Introducing Seedly Reviews!-- 9:20-10:09
  • Icebreaker-- 10:10-18:07
  • Why is there a need for P2P lending?-- 18:30-19:57
  • P2P Lending Promo Codes!-- 19:59-20:30
  • Why do borrowers choose to take alternative financing via your platform, when they could just take bank loan from banks?-- 21:00-25:45
  • Are there any cornerstone investors, sponsor, accredited investor, institutional investors who have taken up the P2P loans? If no, why not? -- 25:49-29:04
  • Why don't the P2P companies raise seed funding from venture capital or angel investors to put into the P2P loans?-- 29:30-35:10
  • Any P2P platform has a reputable listed company or blue chip company as a borrower?-- 35:14-36:25
  • I have a few defaults (won't mention which platform), still pending court process and recovery. Is there any hope of getting some back? Or is it totally lost?-- 36:46-41:35
  • What are the factors people should focus on when looking through the statistics of a P2P lending company?-- 42:21-43:05
  • There are so many platforms to choose from. What is the main feature that sets you apart from your competitors?-- 43:13-48:17
  • Are there any national statistics on the 2008-2009 crisis time default rates of SMEs or companies of similar profile on the P2P platforms?-- 48:50-53:15
  • What's the outlook on investing in P2P loans with cryptocurrency?-- 53:30-55:23
  • Why isn't there a requirement for companies to put up collateral for P2P loans? Such that in a default at least the collateral can help investors recover some investment back?-- 55:30-59:27

    Speakers:

- Getty Goh (CEO, CoAssets)

- Pawel Kuznicki (CEO, Capital Match)

- Ronnie Chia (Co-Founder, Minterest)

- Kelvin Teo (Co-Founder, Funding Societies)

- Kenneth Lou (Seedly Moderator)


NOTE: SeedlyTV is a series which will be covering topics via LIVE video and QnA on the Seedly platform. We will be inviting speakers to cover relevant topics in personal finance: Insurance, Debt, Saving, Spending and Investing. 

-This is a Seedly organised event-

Missed EP06? Watch it here: SeedlyTV EP06: CPF 101 With Mr Soh Chin Heng, Deputy Chief Executive of CPF

Remember to ask your questions in the QnA section below!

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SeedlyTV EP07

Investments

P2P Lending

It is not impossible. The European P2Ps are doing it recently. It could be one option the p2p funding in singapore could move into provided they have sufficient spread of loan Still, picking individual loans has their own merits too

SeedlyTV EP07

P2P Lending

Investments

There will always be risks involved, and higher so for P2P lending. Always go in with your eyes open, diversify instead of putting your eggs into just a few baskets, and expect some negative surprises in a small percentage of the P2P deals.

SeedlyTV EP07

P2P Lending

I can only simply say, use other platform. I would recommend you to look into other p2p platform. There are platforms which has a low investment amount. Funding societies and moolah sense need you to deposit a minimum deposit of $500. Each loan is $20 which can spread your risk to 25 loans. This is sufficient to cover 2 defaults worth of $20 Minterest needs a minimum deposit of $1000. Each loans are at least $50-100 if I call correctly. Need referral for funding societies or advice. Feel free to fb msg or comment

SeedlyTV EP07

Funding Societies

P2P Lending

Here are some of my thoughts : 1.your minimum sum invested is too small. You can set a higher amount. Or you can try your luck when the loans are listed to put in more. 2 recently, most loans listed are small with maximum of $20-50. Remember you are not the only investors. 3. There is simply too little supply of loans requested by borrowers. You can help recommend your business partners if they need debt financing. So more supply of loans is issued 4. There is a consolidation of loans in views of unfortunate spike in defaults in Q2 2019 faced by p2p and banks 5. There may be a lot of rejection towards borrowers by the platform itself because some borrowers simply have poor cash management. I would like to thank funding societies for the due diligence. Dear borrowers, please help yourself first (understand your business and financial health) before seeking help from others. P. S I am shock to see that u have invested 23k into funding societies alone. Such a large sum. How I wish I have such an amount. I can do a lot of things with it. Lol Advice :maybe it is time to divest and spread your risk. Look into other platforms not just locally but also globally. You could fb msg me for advice or you can go to crowdfundtalks.com to seek advice

SeedlyTV EP07

P2P Lending

May I ask how much is enough information to you? What other information you would like to have? Remember that borrower has their privacy concerns too and the platform would need to strike a balance. Honestly, I personally feel that the fact sheet is sufficient enough to deduce payment behaviour and ability of the borrower. You could always opt out the loans if it is not within your risk appetite. Do note that most loans are catered towards SMEs with short business history. P. S I myself also would like to have more information

SeedlyTV EP07

Investments

P2P Lending

Minterest

CoAssets

Capital Match

Funding Societies

Here are my 2-cents thoughts. As much as p2p is a tech driven fintech, it is still a service industry nevertheless. To me, whatever technology features such as auto-invest will soon be commonly used by the platforms. Without them, they will lose an edge. So you could start by asking yourself what would you like to have as an investor or a borrower. For a borrower, would be probably necessary financial advice so that they will get sufficient funds. Etc. For an investor, you want as lower risk loan as possible. Is there a sufficient supply of loans? Which platform provides a better investing experience? the extensiveness of platform providing the loans. How receptive are the platform to feedback and their responsiveness in changes? Having a good customer base, along with a good support team could improve your rewards and user experience. Furthermore, having 0% default rate is ideal. However, is your funds put into desirable rewards investment? This also questions the response of the platform in a situation of defaults. In choosing the platform, ask yourself what gives you a better piece of mind. Is it within your risk-reward? Which loan product do you prefer? (there is some difference in loans offered among the platform) what is your ability? (your fund size and risk tolerance ). You should also filter the reviews and forums of the platform. Remember this is a service industry. In my opinion, a good service, or user experience should be the main factors in choosing the platform. A good service attracts more borrowers and in turn attracts more investors. A good service is what drives the platform to innovate and constant improve themselves. Do your due diligence. Feel free to Facebook msg me if you have any queries.

SeedlyTV EP07

P2P Lending

Investments

Fan ZD
Fan ZD, Employee at A Bank
Level 3. Wonderkid
Updated 2w ago
As far as I know both Funding Societies and Moolahsense have them. Turning them on gives you priority over those who subscribe/invest manually.

SeedlyTV EP07

P2P Lending

Hi Anon! SMEs in Singapore, commonly referred to as the 'backbone' of our society, account to 99% of Singapore companies, and contribute to 50% of the nation's GDP). Local P2P lending platforms offering SME lending, continue to fill this important gap in society -- providing credit-worthy MSMEs with customised financing solutions for their growth, expansion and cash-flow optimisation, with the funds contributed by investors (both individual and institutional) who are of a suitable risk appetite, through debt crowdfunding. P2P platforms, taken together, present an array of funding opportunities to serve these local businesses. In light of your words, the potential for consumer lending via debt crowdfunding does exist, given its prevalence in Europe and the US. In Singapore, however, there exist stringent regulations to protect (consumer) borrowers in Singapore by Ministry of Law (instead of the Monetary Authority of Singapore, which regulates crowdfunding for financial instruments under a different set of regs), which consumer financing/lending comes under. To this end, they have closely regulated this industry, having recently awarded 6 companies with specific licenses) to provide data-driven personal lending (which in itself does not regulate consumer financing through crowdfunding by P2P platforms). Some other inquisitive P2P investors have in fact, like you, discussed the possibility too, alongside one of the representatives from Minterest here)! Assuming the regulatory hurdle is cleared, it ultimately boils down to the platform's chosen target market (e.g. one of Funding Societies' main focuses is to impact societies through the empowerment of SMEs). Hope I was able to address your concerns! Feel free to voice your opinions on this, happy to discuss further.

SeedlyTV EP07

P2P Lending

Loans

Investments

Hi Gabriel, pleased to meet you - your responses & questions have been great learning for me personally! Kaeley here, I'm the Community Manager from Funding Societies! 👋 Have you reached out to the said platform on the slow updates yet? I'd like to share with you a related opinion piece, contributed by one of our investors on our blog - link here! He delved into detail on why a loan default may not result in a 100% wipeout of one's principal. Would love to hear your thoughts on this! Separately, you may also interact with him here on the topic, alongside other FS investors. Do let me know if it helps! :)

SeedlyTV EP07

P2P Lending

Investments

Fan ZD
Fan ZD, Employee at A Bank
Level 3. Wonderkid
Answered 6d ago
For one, Funding Societies I know has skin in the game. MoolahSense does not.
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