What are default rates?

Hi there!

This is Cass and I’m the community engagement manager from CoAssets :)

Firstly, to answer your question, a default rate is the percentage of outstanding loans that has yet to be repaid after 30 days (according to MAS). This has been covered by some of the other post in this thread and the one my Kenneth Fong is quite comprehensive so I shall not repeat those points 😅😅😅

In terms of other tips and details, a new investor like yourself should first take a look and see how those default rates stack up.

Based on what’s published online, the default rates for the various platforms for 2018 are shown below:

1. Moolahsense: 14.82%
2. Minterest: 0.59%
3. Funding Societies: 0.47%
4. SeedIn: 0.32%
5. CoAssets: 0.00%

Apart from default rates,some other information that you may want to look into before participating are:

1. Transparency of the platform
2. Suitability of the platform
3. Risk Assessment for loans

Some questions you could ask yourself:

1. Do platforms have their financials readily available?
2. Do you prefer to diversify across many small loans or concentrate your money on several bigger loans?
3. Are you comfortable with the minimum investment amount? It is important to ask the right questions before taking part in any sort of investments.

I hope this answers your question :)

Can you share more about your product? Is it just p2p cash lending or some sort of invoice financing?