Funding Societies

How does P2P Lending Work at Funding Societies?

Peer to peer lending allows investors to lend money directly to other individuals via a P2P platform. It works differently from bank loans as it removes the hefty middleman. For P2P, Investors have the choice of selecting which type of loans they prefer to fund.

At Funding Societies, the loans can be crowdfunded from various investors. Which is why it is possible for the minimum investment rate to start from as low as $20.

To assure credibility, thorough checks are made on the enterprises that request for financing before they are eligible for any business loans.

Risk Management

Default by the issuer is the primary risk that investors get exposed to with this type of investment. Funding Societies conducts a detailed assessment on the SMEs based on a framework which combines a mixture of hard and soft data including but not limited to  credit bureau ratings, bank & financial statements, cash flow projections, site visits, strength of guarantors, marketability of collaterals and business's capacity to repay the facility.

Specifically for Property-backed collaterals such as residential or commercial properties owned by the issuers or guarantors are held to mitigate credit risk exposures.

Types of Investments with Funding Societies

• Guaranteed Property-backed Investments
• Guaranteed Returns Investment
• Property-backed Secured Investment
• Invoice Financing Investment
• Revolving Credit Investment
• Business Team Investment

Funding Societies provides investment opportunities into notes issued by SMEs for financing facilities such as Property-backed Secured Financing, Business Term Financing and Invoice Financing.

The interest charged to the SMEs is the return on investment for the investors who co-invest into the notes through the crowdfunding platform.

For certain investments such as the Property-backed one, SMEs need to provide a residential or commercial property, usually with a first charge.

Also, certain investments have guaranteed repayments for both the principal and interests.

What do you need to know as a P2P Investor?

• Funding Societies' minimum investment starts from just S$20
• Majority of the investments are short term with a maximum tenor of 12 months 
• Monthly repayment for most products provides liquidity and also allows investors to re-invest for a compounding effect
• 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 and Business Term Loans
• Individual Singaporean investors can enjoy tax exemption for their interest returns from 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 our investors peace of mind.
• Sign up through the web or download the Funding Societies mobile app to invest on the go
  

Types of P2P Loans available

Here are some crowdfunded business loans available for SME in Singapore:

1. Micro Financing

Fast loans with approval within 24 hours¹. Suitable for small businesses that need urgent financing.

2. Term Financing

Funds tailored for working capital, business expansion, and more. Larger financing amounts available.

3. Invoice Financing

Convert your invoices into cash immediately.

Exclusive Promotion with Seedly

• Promotion is applicable for new users only
• Click on the "Visit Site" link or "Apply Now" button
• 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 the $20 cashback
• Cashback will be credited into your account by the end of the following month when the 30-day period ends
• Funding Societies' investor T&Cs apply

Fees for Funding Societies

The minimum investment for Funding Societies is S$20.

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

• Live Chat on their website, or via Email
• Phone: 6221 0958