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Funding Societies P2P Lending

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  • Reviews (357)
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P2P Lending/Funding Societies P2P Lending
P2P Lending/Funding Societies P2P Lending
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This product is managed by Funding Societies.

USER RATINGS

User Experience

4.4

Portfolio Transparency

4.0

Customer Support

4.3

Quantity of Deals

3.7

Quality of Deals

3.7

Funding Societies P2P Lending

18% on interest earned

INVESTOR FEES

$20 per campaign ($100 initial deposit)

MINIMUM INVESTMENT

1.89%

DEFAULT RATE (2019)

[EXCLUSIVE] S$20 cashback for new users with promo code "SEEDLY20". View promotion under "More Details".

Funding Societies P2P Lending

18% on interest earned

INVESTOR FEES

$20 per campaign ($100 initial deposit)

MINIMUM INVESTMENT

1.89%

DEFAULT RATE (2019)

[EXCLUSIVE] S$20 cashback for new users with promo code "SEEDLY20". View promotion under "More Details".

Details

Product Page Transparency

  • Claimed in August 2020
  • Pays to access additional features

Funding Societies Review 2021

Funding Societies is a peer-to-peer lending platform which specialises in short-term financing for SMEs through crowdfunding.

As a platform, they are committed to providing financial support to SMEs, since four in 10 SMEs lack support from financial institutions. At the same time, they provide financial opportunities for individuals and institutions by providing short-term fixed-income investment options.

This way, everyone wins!

The majority of Funding Societies' investments are short-term with a maximum tenor of 12 months. As an investor, you can start investing with as little as S$20. And the investment returns you're potentially looking at is 9.82% — based on the Singapore weighted average in 2019.

Read More about Funding Societies P2P Lending
Reviews (357)

4.1

357 Reviews

  • 5
    161
  • 4
    136
  • 3
    20
  • 2
    9
  • 1
    31

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    pinned

    Pinned by Funding Societies

      Updated on 28 Oct 2020

      Purchased

      Funding Societies P2P Lending

      [Customer Support] [User Friendliness] Funding Societies (FS) has been very simple to use on its UI and is a great way to have another investment channel in my life. The Customer Support has been very responsive and reliable. For instance, I recently got mixed up with another very similar loan deal and made a mistake and invested in this loan deal that I did not intend to, and received very responsive help through its Chat function. Unlike other organisations that provide "robotic" replies, I believe its Chat function is an actual customer service support person assisting you with your query. I approached the Chat function immediately when I realised my mistake (couple of minutes after confirming the investment) and they were very understanding and helped to reset the investment submission. Eventually, I was able to submit investment to the correct deal I intended to. I'm really glad to have found Funding Societies, and amidst this "testing" months I have tried, it has been very smooth so far and I plan to load up cash next year and power up my account. Also, not to forget it has very fast and hassle free Deposit and Withdrawal processes!

      0

      Post

      Updated 1d ago

      Purchased

      Funding Societies P2P Lending

      Pretty new user, and have just one loan so far. User interface is smooth and quite easy to navigate. There seems to be much higher demand than supply investment opportunities though, so without setting up auto-invest, one may end up missing most of the deals.

      0

      Post

      Updated 2w ago

      Purchased

      Funding Societies P2P Lending

      [Lending Experience] Invested in a Property Backed Guaranteed Investment with 12 months tenor. I am a conservative investor and I thought this is the safest investment available with only 6% interest before fees. Probably FS did not do the background work properly, my fund was held up for almost 2 months now, still pending investment. I could have better utilize my money rather than just being held up and cannot withdraw nor earn any interest. There is still no clear indication when the fund can be disburse to the borrower or cancel the crowdfunding and refund the investor.

      2

      Funding Societies Singapore

      Funding Societies Singapore

      profile

      15 Jan 2021

      Hi Lee, thanks for choosing to invest with us and we apologise for not responding with the speed you require. We have a relatively lean team that juggles with multiple functions so our response time may not be immediate. At times it is possible that there’s delay in our response outside of working hours. As much as we can, we would respond to all inbound queries that come through by the end of the working day.

      Funding Societies Singapore

      Funding Societies Singapore

      profile

      2w ago

      Hello Lee, thank you for giving us a chance to address your latest query. Based on your records, we’ve identified the specific incident you’ve highlighted and we’re sorry that your experience hasn’t been ideal. We would like to mention that we’ve already sent an email to all impacted investors on 25th Feb 2021, Thursday to address this as you may have noticed as well. To clarify, at the point of crowdfunding, we had a pre-disbursal condition that the Issuer needs to settle their existing invoice financing outstanding balance with their financier to reduce their overall credit exposure before the funds we have crowdfunded can be disbursed to them. This is vital to ensure that their cash flow ease up to facilitate timely repayments for deals with us. The Issuer requested for some time to do so and despite multiple follow ups and giving them enough time, they did not settle the outstanding with the other financier. Given the above, we made the decision to cancel the crowdfund to ensure we do not expose investors to avoidable risks and all the investors’ funds have since been returned to the individual investor wallets. This, we believe is an exception scenario and we will do our best to minimise such incidents in future. Once again, we’re sorry about the experience. Please reach out to us should you have any further queries at [email protected] or https://fundingsocieties.com and we’ll be happy to help.

      Post

      Updated 2w ago

      Purchased

      Funding Societies P2P Lending

      I have accounts with Validus, Minterest and Brdge. Funding Societies is the easiest to sign up, use and has one of the better customer service support. It has a good amount of deals so you are well diversified. I highly recommend this for everybody!

      0

      Post

    • Update 23 February 2021: [Customer Support] The customer support team actually got in touch with me after the review left in January 2021. They were patient enough to explain to me in greater detail what happened to my portfolio. Funding Societies has also adopted various product updates to help investors invest better on their P2P lending platform. [Portfolio Diversification] To put things into perspective, I have a potential loss of 62% as of January 2021 due to overexposure to a certain SME. While I do have the opportunity to look into the loans that were auto-invested, I did not do so, thinking that this is a passive investing platform. Not a desirable behaviour for a P2P lending platform. This is a high-risk investment product. Do DYODD before investing. Below are my thoughts when I first got onboard FS: Decided to invest some of my money for risky investment onto the platform. Here are some of my thoughts. 1) Onboarding process might be a little troublesome. But their customer service is quite helpful. Also, I feel that the onboarding process might be due to regulations. 2) Other than that, the user interface is modern and nice. Plus they have a mobile app that works for millennials like myself. 3) I can't seem to get any loans invested when I do it manually. The need for auto-allocation also means that I can't select my loans much. I believe this is due to the demand for it being higher than the supply of P2P loans. 4) Already on my 13th loans, so far with little issues of default and everything was easy to use. I have yet to withdraw any money from the platform. Will keep this review updated.

      1

      Funding Societies Singapore

      Funding Societies Singapore

      profile

      2w ago

      Hey Ming Feng, we appreciate your time with us yesterday and thank you for your feedback here on Seedly. Should you need any more help, you can reach us at the usual places [email protected] or https://fundingsocieties.com. We'd be happy to be of service!

      Post

    Questions (0)
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      No Question Found.

      Understanding Peer-to-Peer Lending: How does Funding Societies Work?

      Peer to peer (P2P) investment, aka P2P lending is where individuals and institutions put their money together to invest and finance SMEs.

      They'll earn returns in the form of interest earned on the amount lent to these SMEs.

      Funding Societies is a platform which connects SMEs sourcing for business financing directly with investors who would like to include P2P investment as part of their investment portfolio.

      Is It Safe To Invest With Funding Societies?

      The primary risk which you'll face as an investor on Funding Societies is: default by the issuer.

      Funding Societies always conducts a detailed assessment of SMEs seeking financing. And this is based on a framework which consists of a mix of hard and soft data. Some of the information in the assessment includes credit bureau ratings, bank & financial statements, cash flow projections, site visits, strength of guarantors, marketability of collaterals and even the business' capacity to repay the facility.

      For property-backed investments, collaterals such as residential or commercial properties owned by the issuers or guarantors, are held with a first lien or charge to mitigate credit risk exposures. This means that these properties may be auctioned to recover the investment amount in the case of issuer default.

      All investors' funds are also handled by a 3rd party escrow agency, Vistra, which is licensed by the MAS. Which means that you don't have to worry about the mismanagement of funds.

      Funding Societies also has an in-house compliance team, as well as internal and external legal counsel to take care of regulatory and legal matters. So overall, you know that the platform is legit.

      Exclusive Promotion with Seedly

      Sign up with the promo code 'SEEDLY20' and make a total investment of at least S$200 within 30 days of signing up to be eligible for a S$20 cashback!

      The cashback will be credited into your account by the end of the following month when the 30-day period ends.

      Interested?

      Just click on the "Apply Now" button to sign up.

      Note: This promo is applicable to new users only. Funding Societies' T&Cs apply.

      Types of Investments with Funding Societies

      Using Funding Societies, you can invest in notes issued by SMEs for the financing of various facilities eg. Property-backed Secured Financing, Business Term Financing and Invoice Financing.

      The interest which the SMEs have to pay is the return on investment for investors who co-invested in these SME notes via a crowdfunding platform like Funding Societies.

      Notably, some investment such as the Property-backed types requires SMEs to provide a residential or commercial property as collateral.

      Others have guaranteed repayment on both your principal and interest earned.

      Type of P2P Investment

      Description

      Interest Rate

      Guaranteed Property-backed Investment

      Investment into a property-backed financing with repayments effectively guaranteed

      3% - 8% p.a.

      Guaranteed Returns Investment

      Investment into a micro financing with repayments effectively guaranteed

      2% - 8% p.a.

      Property-backed Secured Investment

      Investment into a property-backed financing

      4% - 8% p.a.

      Invoice Financing Investment

      Investment into a invoice backed financing

      8% - 18% p.a

      Revolving Credit Investment

      Investment into a revolving credit line granted to SMEs

      8% - 18% p.a

      Business Term Investment

      Investment into a business term financing

      8% - 18% p.a

      Type of P2P Investments at FS and Interest rates

      What Do You Need to Know as a P2P Investor using Funding Societies?

      • Funding Societies' minimum investment starts from just S$20
      • Majority of the investments are short term with an average tenor of 5-6 months and a maximum tenor of 12 months 
      • Monthly repayment for most products provides liquidity and also allows investors to re-invest quickly
      • Interest rates are typically between 4% - 8% per annum for the guaranteed and property backed notes and goes up to 8% - 18% per annum for Invoice Financing, Business Term Loans and other products.
      • Individuals who are Singapore residents can enjoy tax exemption for their interest returns on investments from the year 2020 onwards
      • ‘Skin in The Game’ philosophy: Funding Societies co-invests with the platform investors in most notes
      • Engages an escrow agency to manage investors’ money to give investors peace of mind.
      • Sign up through the web or download the Funding Societies mobile app to invest on the go

      Fees for Funding Societies

      • The minimum investment for Funding Societies: S$20.
      • Service Fee: 18% on the interest earned. This fee is deducted only after the repayment has been received.

      About Funding Societies

      Funding Societies | Modalku is the largest debt crowdfunding platform in Southeast Asia. It is licensed in Singapore, Indonesia, and Malaysia, and backed by Sequoia India and Softbank Ventures Asia Corp amongst many others.

      It provides business financing to small and medium-sized enterprises (SMEs), which is crowdfunded by individual and institutional investors.

      In 5 years, it has helped finance over 2.7 million business loans with over S$1.6 billion in funding. It was given the MAS FinTech Award in 2016, the Global SME Excellence Award at the United Nations’ ITU Telecom World in 2017, Brands for Good in 2019, recognised by IDC as amongst the 5 fastest growing FinTechs in Singapore, and the Stevie® Award in 2020.

      Contact Funding Societies

      • Tel: 6221 0958
      • Visit Funding Societies' official website for more information

      Contact us at [email protected] should you require any assistance or spot any inaccuracies.