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Funding Societies P2P Lending
- Overview
- Reviews (330)
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Claimed
This product is managed by Funding Societies.
USER RATINGS
User Experience
Portfolio Transparency
Customer Support
Quantity of Deals
Quality of Deals
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
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.
4.1
330 Reviews
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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
Good user experience and details are quite transparent. Just, the deposit took quite some time. Which i hope u can improve on0
Post - Updated 1d ago
Purchased
Funding Societies P2P Lending
[Customer Support] - A very friendly customer support and quick respond. [Portfolio Diversification] - They have a range of product for your diversification. [User Friendliness] - their app and platform are very user friendly and easy to understand compared to other p2p platform. [Lending Experience] - so far so good0
Post - Updated 1d ago
Purchased
Funding Societies P2P Lending
Everything OK until you check back the website and see 50% of your "investment" are not recoverable [Lending Experience][Risk Assessment][Debt Recovery] My bad to be too concentrated on the investment. You should diversify your investments. The initial deposit of 1000 back in Aug 2019. The number of deals invested so far (Jan 2021): 70. Total Income S$48.09 Deals Invested 70 Interests Received S$47.10 Early fees received S$0.00 Late interests received S$0.99 Bonus received S$0.00 Total Expenses S$8.09 Service fees S$8.09 Net IncomeS $40.00 4 out of 70 are default. Sadly those are my first few investments with a big amount. Outstanding principal (exposure)(S$): 555.37 Current Principal Defaulted(S$): 480.00 Low or No Recovery So, the platform is good in general, but just don't put all your eggs in one basket. Not the platform's fault, totally my bad strategy. Maybe the platform should limit the amount investable for the new starters so they don't concentrate too much.0
Post - Updated 2d ago
Purchased
Funding Societies P2P Lending
I am an existing customer of Funding Societies Malaysia. I joined the Singapore platform recently to diversify my income. Compared to Malaysia, the default rate on the Singapore platform is lower, but the interest rate is lower too. There are also fewer deals on the Singapore platform. [Customer Support] Chat support is quite responsive. I got a response within an hour. [Lending Experience] The process is the same as Malaysia platform, but due to limited deals, my initial cash deposit sits uninvested for a few weeks. [User Friendliness] I missed out a few deals due to auto-invest bot settings. Once the bot failed to invest in a particular deal, it is hard to invest manually due to target reached. [Portfolio Diversification] There are more types of loans compared to the Malaysia platform to cater to the risk appetite of investors.0
Post
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.
Funding Societies Promotion [Seedly Exclusive]
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
- Email: [email protected]