Funding Societies P2P Lending
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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
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.
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Funding Societies Singapore
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
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.
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Funding Societies Singapore
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!
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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.
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.
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.
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
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 us at [email protected] should you require any assistance or spot any inaccuracies.