Funding Societies Reviews and Comparison - Seedly
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Funding Societies

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  • Reviews (135)
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P2P Lending/Funding Societies
P2P Lending/Funding Societies

Funding Societies

3.5
135 reviews

USER RATINGS

User Experience

4.1

Portfolio Transparency

3.4

Customer Support

3.9

Quantity of Deals

3.3

Quality of Deals

3.1

Funding Societies

18% on interest earned
INVESTOR FEES
$20 per campaign ($100 initial deposit)
MINIMUM INVESTMENT
1.20%
DEFAULT RATE (2019 Q2)

    Funding Societies

    18% on interest earned
    INVESTOR FEES
    $20 per campaign ($100 initial deposit)
    MINIMUM INVESTMENT
    1.20%
    DEFAULT RATE (2019 Q2)
Reviews (135)

3.5

135 Reviews

  • 5
    44
  • 4
    44
  • 3
    13
  • 2
    6
  • 1
    28

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  • Updated 3h ago

    Purchased

    Funding Societies

    I've been using FS since Mar 2019. Started with $500 and later topped up an additional $100 in April 2019. I normally go for investment opportunities above 12%pa (which means those are the more risky ones). To date, I have invested in 101 loans, of which 11 are still ongoing. I have $18.25 in principal defaulted, of which $4.91 has a narrow chance of being recovered. Overall the returns have been quite ok despite the steep 18% fee on interest earned. Pros: 1. "Dividend reinvested" methodology. Unlike shares where you can choose to receive your dividends/interest in cash to your bank account, you are unable to do so for FS. You would have to manually withdraw it. Hence, your interest is automatically reinvested which makes it easier for you to be more disciplined with your investment. 2. Start small. You can put as little as $20 into each loan if you are just starting out and would like to test water. 3. Minimum of $100 to activate the account. This is down from $500 when I first started. Allows almost anybody, especially students, to start investing. Cons: 1. Generally lesser investment opportunities for higher interest loans these days (ie. Invoice Financing and Business Term) 2. A steep fee of 18% on interest earned from each loan 3. If there are no suitable loans, your money sits idle without acquiring interest Conclusion: Nonetheless, this app is still a good starting ground for people who would like to invest in alternatives. For investors who are highly risk-averse, you could start with their guaranteed returns product, which as the name suggests, guarantees you a return, although a much smaller percentage.
    0 comments
    0
  • Updated 2w ago

    Purchased

    Funding Societies

    My first time with p2p platform and funding societies have made things very simple to understand for a first timer. The customer service members also addressed queries promptly and the notifications for new opportunities were good for people who aren't Monitoring the platform all day. Only setback is probably not as many deals as other platform per se but the quality of the investment so far has been promising.
    0 comments
    0
  • Updated 2w ago

    Purchased

    Funding Societies

    The best SME-focused crowdfunding platform in South East Asia. Thumbs up for Customer Support, User Friendliness, Portfolio Diversification among others.
    0 comments
    0
  • Updated 2w ago

    Purchased

    Funding Societies

    In just one year of signing up, I've seen many late repayments, a few defaults that amounts to 1500+ sgd. My initial deposit is 2000 only. Funding societies say they dont expect to recover the funds because they are not a secured creditor. wow. I'm taking of what small sum of money i still have and never returning again! Also, dont give me the "rubbing-salt" reply of ohh you shouldn't expose yourself to a single issuer. Too much risk because so many of the loans defaulted and they are from the same company? So you mean this auto-invest bot helped me invest into multiple loans from the same company which you labelled as "scam" in the debt recovery loan later on. How is that fair? Stay away!!
    2 comments
    1
    GC
    GC

    2w ago

    To a certain extend, I sympathize with you. I have commented some time ago that the primary function of auto-invest feature is to assist investors to successfully or at least have a higher potential to place their funds in a loan offer, not to evaluate the potential of default. However there is a glaring downside to this arrangement. Notwithstanding the fact that the fact sheets were made available to investors a few hours before crowd-funding, sometimes the availability period may not be sufficient for investors to thoroughly understand the borrowers through the fact sheets. This might result in poor investment decisions. I'm not saying this is totally the responsibility of Funding Societies. There seems to have a need for balance between having sufficient time for investors to browse the fact sheets vs potential to participate in crowd-funding. I'm all for the idea of investors are responsible for managing our own funds, but if there is insufficient time given to understand the borrowers coupled with the time pressure of missing the opportunity to invest due to over-subscription, investment decisions made might not be sound. Something to ponder over, @Funding Societies.
    Funding Societies Singapore
    Funding Societies Singapore

    3d ago

    Hi Joseph, we’re sorry to learn about your losses. While late repayments are inevitable in the nature of our business, we’d like to assure investors that we do expend the required recovery efforts to recover our investors’ funds and have had multiple instances of successful repayment of principal + interest. We take recovery efforts seriously and only charge service fees on a success basis. Funding Societies also co-invests in all the deals we crowdfund. This, on top of how we charge our service fees, serves to align our interest with investors. We’d also like to clarify that Auto Invest is not a means for diversification and primarily serves as a tool of convenience for investors to deploy funds in an upcoming deal based on the criteria they themselves have set. The default you’ve mentioned likely falls under Invoice Financing and each funding is backed by a separate invoice. As such, there were multiple notes listed over a period of time and the Auto Invest bot deployed those funds for you based on the criteria you’ve set. For invoice financing, it's an industry practice to have multiple notes from the same issuer as long as the underlying invoices are different. We would be happy to provide more insights into specific loans that you might be referring to if you could reach out to us directly and identify yourself with your email id since we are unable to identify you based on your name displayed here. Please also note that all investors have at least 3 hours to deliberate the deal when a crowdfund is listed and they can choose if they wish to invest or opt out if auto-invested within the deliberation period. We provide fact sheets that highlight the issuer’s financials and the number of ongoing notes and the existing platform exposure to issuers is clearly mentioned in it. Any existing ongoing investment amount into the issuer is also displayed on our platform for investors to decide if they wish to further invest in the same issuer or otherwise. We hope the above clarifies! Please feel free to reach out to us via live chat on our website https://fundingsocieties.com or email us at [email protected] for further discussions identifying the specific notes you are referring to. Thank you.
  • Updated 3w ago

    Purchased

    Funding Societies

    [Lending Experience] There seems to be a high default rates at times [Portfolio Diversification] Quite diverse and I see that they have been improving themselves by adding more diversified products.
    1 comment
    0
    Funding Societies Singapore
    Funding Societies Singapore

    2w ago

    Hi Peter, thanks for taking the time to leave a review for us. Our default rate is competitively low at 1.89% for Singapore (https://fundingsocieties.com/progress/singapore) and we are concerned about what could have caused you to think otherwise. We’ll love to have a chance to engage you on this discussion to clarify any doubts so please do reach out to us via live chat on our website https://fundingsocieties.com or email us at [email protected] Thank you.
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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 4 years, it has helped finance over 1.4 million business loans with over S$1.2 billion in funding. It was awarded the MAS FinTech Award in 2016, the Global SME Excellence Award at the United Nations’ ITU Telecom World in 2017, Fintech Top 100 by KPMG in 2018 and Brands for Good in 2019.

Types of investments with Funding Societies

Funding Societies provides investment opportunities into notes issued by SMEs for financing facilities such as Property-backed Secured Financing, Business Term Loans 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 are guaranteed for both principal and interest. 

What do you need to know as an investor?

  • 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
  • ‘Skin in The Game’ philosophy -  Funding Societies co-invests with the platform investors in most notes
  • Sign up through the web or download the Funding Societies mobile app to invest on the go

Risk Management for Funding Societies

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 

Investors’ funds are handled by a 3rd party escrow agency, Vistra.

Minimum investment and fees for Funding Societies

The minimum investment for Funding Societies is S$20.

Funding Societies can be contacted via