Funding Societies P2P Lending

How does P2P Investing Work at Funding Societies?

Peer to peer Investment (P2P Investment), also known as P2P lending, is an investment concept where individuals & institutions jointly invest in financing to SMEs and earn returns in the form of interests. Funding Societies connects SMEs sourcing for business financing directly with investors who are looking to participate in P2P Investment as part of their investment portfolio.

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 investments collaterals such as residential or commercial properties owned by the issuers or guarantors, are held with a first lien/charge to mitigate credit risk exposures. These properties may be auctioned to recover the investment amount in case of default.

Investors’ funds are handled by a 3rd party escrow agency, Vistra. Funding Societies also has an inhouse Compliance team and internal and external legal counsel to support regulatory and legal matters.

What do you need to know as an Investor with Funding Societies?

• Funding Societies is the largest SME lending P2P investment platform in Southeast
  Asia and licensed in Singapore, Indonesia and Malaysia
• It’s shareholders include the likes of Sequoia, Softbank and SGInnovate amongst
  many others
• Funding Societies has won many awards including 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.
• Funding Societies' minimum investment starts from just S$20
• Majority of the investments are short term with average tenor of 5-6 months and
  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 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

Types of Investments with Funding Societies

Fees for Funding Societies

• 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 3.2 million business loans with over S$1.8 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.