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
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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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.