Funding Societies P2P Lending
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Summary
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- Claimed in August 2020
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Funding Societies Review 2021
Funding Societies is a debt investment platform specialising in short-term digital financing for SMEs while providing a convenient and short-term fixed-income investment option for investors.
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 with their fixed-income investment option.
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 7.82% — based on the Singapore weighted average in 2020.
Funding Societies P2P Lending
18% on interest earned
INVESTOR FEES
$20 per campaign ($100 initial deposit)
MINIMUM INVESTMENT
1.26%
DEFAULT RATE (2020)
Funding Societies P2P Lending
18% on interest earned
INVESTOR FEES
$20 per campaign ($100 initial deposit)
MINIMUM INVESTMENT
1.26%
DEFAULT RATE (2020)
4.1
531 Reviews
Service Rating
User Experience
Portfolio Transparency
Customer Support
Quantity of Deals
Quality of Deals
Pinned by Funding Societies
- 09 Apr 2021
Purchased
Funding Societies P2P Lending
[Lending Experience] Background: I have been using the platform since Jan 2021, this was simply to see if P2P lending would be something valuable to add to my portfolio. Depositing process: The process was smooth, the transfer was done accurately since I followed their instructions very carefully. I am IT savvy, so no issues here. I imagine some people who are less careful may encounter some issues especially if they forget to put their reference number. Investment/ lending process: Deals / investment opportunities were available and informed in advance via notification in the phone and via email. I didn't want to push too hard and go for the higher risk/ return opportunities, so I went for generally property backed lendings. Defaults: No defaults so far, no late payments, no problems here. Withdrawals: Withdrawals were smooth, I received my money after about 2-3 days.0
What are your thoughts? - Posted 25d ago
Purchased
Funding Societies P2P Lending
I have been using the app for almost a year now when I was in Malaysia. Subsequently when I move to Sg, I realised I can set up a separate Sg account and therefore I set up a separate account. I have been using the app for about two weeks now but I realised the investment opportunity is lesser in sg as compared to Malaysia. Nonetheless grea app and will continue to use. Perhaps can make it more seamless to change between countries in the future.0
What are your thoughts? - Posted 04 Jun 2022
Purchased
Funding Societies P2P Lending
I very very suggest to start your investment by using funding societies. For me, I feel that it was very very stable investment since the default rate of fund societies is only 1%, mean that's only 1 default investment over 100. It wad very reliable. [Lending Experience]0
What are your thoughts? - Posted 11 May 2022
Purchased
Funding Societies P2P Lending
Was recommended by a family member to join. I had not started to have deals yet but had seen his rewards and thats what motivated me to join too.0
What are your thoughts? - Posted 11 May 2022
Purchased
Funding Societies P2P Lending
I kena even prior to COVID conditions and "recession" talk. 2 years of gains wiped out because they loan out to companies who do not repay, citing problems, even though got guarantor or property. Declared close case. Oh, and those which do pay back do so late, and no interest on late payment. So you also miss out on new investment opportunities. There are other ways to earn. I won't recommend Funding Societies.1
What are your thoughts?
Funding Societies Singapore
26 May 2022
Hi again Andrew, we notice that you have on multiple occasions left us similar reviews over the past 2 years. We’ve also addressed those concerns relating to the defaults incurred.
To clarify some of the points raised, Property Secured Investment (PSI) and Guaranteed Property Investments (GPI) deals are backed by properties, and investors may recover their funds should there be a default via liquidation of the properties of which Funding Societies usually has 1st legal charge over.
Your last investment with Funding Societies was over 2 years ago and none of the PSI deals during those times defaulted. All of them were successfully repaid in full. Between May 2020 until recently, the platform didn’t experience a single default for almost 2 years. Even so, the default that just happened is a PSI so investors may recover their investments as mentioned above.
There is also an added emphasis for us to facilitate more guaranteed and property backed deals as compared to the pre-Covid days. While we still do unsecured lending to some SMEs, these were also all successfully repaid. In consideration of these points, we do not think that your recent review is an accurate reflection of how the platform has performed since you stopped investing with us.
On the mention of deals with a guarantor that isn’t recoverable, you would have also read in our repayment notes that they have gone into bankruptcy which is why we aren’t able to legally continue seeking recourse.
While we acknowledge that you have incurred non-recoverable defaults, which is expected for any platform similar to ours, in totality your portfolio is still in a net positive position.
We do charge late interest on our borrowers and you have also earned from this on multiple occasions. Nonetheless there are times where we may waive it off depending on circumstances. One such common occurrence would be the banking of a cheque on a Friday which we only expect to clear on the following week.
Please reach out to us should you have any further matters to clarify or discuss. Thank you.
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- Opening an account is easy. Having it activated, well, not so straight forward. Because you need to deposit $100 before anything appears on your home page. Confirmation of a deposit intent also doesn't show until, well, the deposit goes through. So for the skeptical first time investor, well, the 1-2 business days are not easily passed. Pro-tip, do not (like me), deposit on a Friday just before a 4-day long weekend. May be do a Monday. Also, FS, may be turn off the auto emails regarding the first deposit once an intent to deposit has already been made. I mean, I put in $5,000, and keep getting emails to make my first deposit over the long weekend? Plus homepage doesn't show anything except "make your first deposit", which I already did? I mean I understand the business days part, but the user-experience - not so stellar. After activation, tutorials on how to setup investment bots. Ok. Not bad. Except, wow, much nothing. May be it's just a bad time, but there were no portfolios to invest. Like zero. So yeah. What can I say but a whole much of nothing? Well, them FS says I get $10 for writing a review. Let's see how this goes.
1
What are your thoughts?Funding Societies Singapore
26 May 2022
Hello Ives, thank you for taking the time to write us a review on Seedly. We’re very heartened to hear that like many other investors, you’ve also found our account opening process an easy one.
We’re sorry to hear that your deposits took a while to be reflected in your investor account. Thank you for your kind understanding of the circumstances as you have pointed out. The two back to back public holidays (Labour Day & Hari Raya) after the weekend meant that deposits on Friday can only be processed on the following Wednesday which is the following working day. No deals happened over this long weekend so be assured that you have not missed out.
As for investment opportunities, we had a couple of Invoice Financing deals listed on our platform recently to which you would have received notifications about. We have emailed you separately to share some ways on how you can increase the chances of your funds being deployed into our deals.
We’re also happy to share that with the relaxation of Covid measures and the opening of Singapore’s economy, we would be revising our credit policies. Hopefully, this would mean there would be more SMEs who are able to finance with us which would translate to more deals for our investors. Do keep a lookout for our push and email notifications for new funding opportunities!
Should you require any further assistance or have any enquiries, you may also reach us via live chat at https://fundingsocieties.com or email [email protected]. Thank you.
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- Reason for lower review was because - 1) Marketing (ads) were thrown all over my face 2) Account sign up was relatively straight forward, but couldn't see any deals before I made the deposit 3) Once deposit was made, had to wait 1 working day to finally realize that there were no deals Curious as to why marketing for sign ups was done when there's no deals on the table
1
What are your thoughts?Funding Societies Singapore
18 May 2022
Hi Aaron,
Thank you for taking time to leave us your feedback. Glad that you've found our onboarding process a positive one.
We're sorry that our marketing efforts bothered you. Marketing is an ongoing business activity and deals are only available when there are suitable ones. As such, the availability of deals may not always be aligned when investors are newly onboarded with us. Nonetheless, we hope to always have a keen pool of investors who are ready to invest when deals are available.
There were actually several big property-backed deals that were being funded shortly before you signed up. Investors who have a preference for this kind of secured products would have found gainful deployment of their funds. We can expect more of these kinds of big deals in a few weeks’ time.
To add, with the relaxation of Covid measures and further opening of the economy hopefully, there would be more SMEs who are able to finance with us which would mean more deals for our investors. Do keep lookout for our push and email notifications for new funding opportunities!
As a new investor, you may also receive several one-off educational email materials on how the platform functions on features like auto-invest. If preferred, there’s also the option to unsubscribe from our mailing list. Kindly note that in doing so, it would also mean that you would not receive notifications about upcoming deals.
Should you require any further assistance or have any enquiries, you may also reach us via live chat at https://fundingsocieties.com or email [email protected].
Thank you.
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- Posted 20 Apr 2022
Purchased
Funding Societies P2P Lending
[User Friendliness] the apps is easy to use, fast setup and fund received within a day. [Portfolio Diversification] lots of different funding opportunity.0
What are your thoughts? - Posted 09 Apr 2022
Purchased
Funding Societies P2P Lending
[Portfolio Diversification] I like the Auto Investment features. It help us to automate our Portfolio Diversification based on our risk profile. We only have to monitor our accounts on weekly basis. [User Friendliness] The mobile apps is user-friendly even to a newbie to p2p lending.0
What are your thoughts? - Posted 06 Apr 2022
Purchased
Funding Societies P2P Lending
[Customer Support] Very swift response and good understanding of the domain [User Friendliness] Simple onboarding, easy to use and the next steps are clear0
What are your thoughts?
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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
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
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.