There is so much pent up demand to invest cash, even when the opportunities are basically short-term junk bonds. Each time Moolahsense launches a peer-to-peer loan campaign at 2.30 pm on a "First Come, First Served" basis, the loans are fully subscribed within a minute.
My goodness, it has become a case of fastest finger wins! A short pop by the toilet and I missed that window. What the shit, literally. Want to lend money also difficult. Why do they launch these campaigns at 2.30 pm anyway?
What surprises me is that most recent campaigns have been in this format while offering a high of 18% interest. "Huat ah!"
I wonder why the companies do not seek the "auction" format where the interest is likely to be lowered due to competitive offers by lenders? Is this a sign of the extent of desperation for quick cash to tide over their business needs? These companies are probably in serious cashflow deficit situations. Cash is king.
Of 21 loans I have participated in thus far, two have experienced late payments. Potentially, they could default. The business climate is difficult.
Most lenders put up between $1,000 to $3,000 per loan. The most extreme I have come across was $10,000. So I guess most are taking the approach of spreading across many loans of small amounts. They are really junk bonds, so some defaults are to be expected.
As a lender, notwithstanding the defaults, it has remained profitable so far. Let's see how this keeps up.
Happy Rooster New Year! *squawk*
Investment through the ages, from cradle to grave.
Showing posts with label P2P. Show all posts
Showing posts with label P2P. Show all posts
27 January 2017
27 September 2016
When Junk Bonds Default
Opening disclaimer:
I should first declare that this is not about some oil and gas company going under!
It had to happen at some point. After a few months of trying out peer-to-peer (P2P) loan on Moolahsense, I've finally experienced the first delayed payment.
The company concerned made two monthly payments promptly for a 12 month loan, but it was only able to provide a partial and late payment in the third month. Not good. It is a potential default case.
As of now, I have 15 loans, each varying between $1,000 to $5,000. So it's still well within the 5% provision I made (see When junk bonds become my moolah).
It's still too early to count the rate of default. It's only been four months into this journey. Fingers crossed.
In 2005, when I first came across this form of P2P locally (Crowd funding comes to Singapore), the number of loan offers ("campaigns") were few and far in between. I guess those were its infancy. This year, the pace seems to have picked up quite a bit. Sometimes, there seems to be one every other day. Then it goes quiet for a period. Quite patchy. It's not yet a steady stream.
But once the portfolio has a number of loans made, it's kind of shiok to see notifications of payments almost every other day. It's probably mere coincidence that the loan payments fall on different days.
I should first declare that this is not about some oil and gas company going under!
It had to happen at some point. After a few months of trying out peer-to-peer (P2P) loan on Moolahsense, I've finally experienced the first delayed payment.
The company concerned made two monthly payments promptly for a 12 month loan, but it was only able to provide a partial and late payment in the third month. Not good. It is a potential default case.
As of now, I have 15 loans, each varying between $1,000 to $5,000. So it's still well within the 5% provision I made (see When junk bonds become my moolah).
It's still too early to count the rate of default. It's only been four months into this journey. Fingers crossed.
In 2005, when I first came across this form of P2P locally (Crowd funding comes to Singapore), the number of loan offers ("campaigns") were few and far in between. I guess those were its infancy. This year, the pace seems to have picked up quite a bit. Sometimes, there seems to be one every other day. Then it goes quiet for a period. Quite patchy. It's not yet a steady stream.
But once the portfolio has a number of loans made, it's kind of shiok to see notifications of payments almost every other day. It's probably mere coincidence that the loan payments fall on different days.
04 August 2016
When Junk Bonds Become My Moolah
Equity hasn't been kind in recent years. While a historical performance of 10-12% (with dividend reinvested) may have been the norm of past, it's been far, far lower of late. But income investing has remained decent with 3-4% dividend payouts while REITs have been giving me 5-6%.
With a combined family portfolio that has crossed seven digits, I felt that I can afford to ante up my risk palette. So I've started placing a small percentage of investment funds into a P2P platform, specifically, Moolahsense.
Spreading my investments into numerous blocks of a few thousand dollars each and across multiple loans, it's effectively creating a DIY junk bond fund isn't it? The nominal loan interests have averaged 17-18% across the portfolio so far. With many of the payments being made on monthly basis, after a while, it seems like there is an incoming payment every other day. Is that shiok or what?
But the shiokness can be deceiving. Logically, I would expect some percentage of defaults. I mean seriously, why would any company take up loans of 17-18% if they could borrow from banks at lower rates? It's almost as bad as owing credit card debts. Clearly, the banks see them as so risky that they are not even prepared to offer them a cent. So, everyone of them is a potential default case.
Like banks that make provisions for non-performing loans, I'm making a provision for 5% defaults. In simplistic sense, if a $100,000 portfolio is making 17%, that's an interest of $17,000. With a 5% default on principal, that's a loss of $5,000. But, the overall outcome would still be 12% gain in net income. Not bad.
But, if the defaults climb above 17%, I'll be in the red.
I'll see how this turns out after a year or two.
Supposing a portfolio of $1.3 million with a spread as follows:
- $1,000,000 of stocks @ 3.5% dividends = $35,000
- $200,000 of REITs @ 6% = $12,000
- $100,000 of P2P loans @ 12% = $12,000
That would generate a passive annual income of $59,000, or almost $5,000 a month.
With a combined family portfolio that has crossed seven digits, I felt that I can afford to ante up my risk palette. So I've started placing a small percentage of investment funds into a P2P platform, specifically, Moolahsense.
Spreading my investments into numerous blocks of a few thousand dollars each and across multiple loans, it's effectively creating a DIY junk bond fund isn't it? The nominal loan interests have averaged 17-18% across the portfolio so far. With many of the payments being made on monthly basis, after a while, it seems like there is an incoming payment every other day. Is that shiok or what?
But the shiokness can be deceiving. Logically, I would expect some percentage of defaults. I mean seriously, why would any company take up loans of 17-18% if they could borrow from banks at lower rates? It's almost as bad as owing credit card debts. Clearly, the banks see them as so risky that they are not even prepared to offer them a cent. So, everyone of them is a potential default case.
Like banks that make provisions for non-performing loans, I'm making a provision for 5% defaults. In simplistic sense, if a $100,000 portfolio is making 17%, that's an interest of $17,000. With a 5% default on principal, that's a loss of $5,000. But, the overall outcome would still be 12% gain in net income. Not bad.
But, if the defaults climb above 17%, I'll be in the red.
I'll see how this turns out after a year or two.
- $1,000,000 of stocks @ 3.5% dividends = $35,000
- $200,000 of REITs @ 6% = $12,000
- $100,000 of P2P loans @ 12% = $12,000
That would generate a passive annual income of $59,000, or almost $5,000 a month.
16 May 2016
I Struck Toto!
Yes! Yes! Somebody won $8 million today with Toto. But no, it's not me. I wished. Sigh. All I got out of throwing $10 on this was a prize of $10. So technically, I did win something. It's break even. No progress whatsoever. Guess I should take consolation there was no loss. Pun intended.
On the market front, the poor market conditions have continued to rue/rule. No excitement there. Actually there is, it's so bad, it's time for more buying!? With PE ratio so low and dividend yield so high, how not to experience a new high?
Interested.
It seems more and more companies are going offline, taken private. More signs of an unappreciated market and underrated stocks?
Meanwhile, dividends continue to come in. And I'm plowing everything back into the market to plant new padis. It'll take awhile. I am patient.
Delighted.
Retail bonds have been launching non-stop of late. Interestingly, these are all from overstretched companies with mountains of debt. Junk bonds? Might as well give it a go with P2P loans. Lagi junk bonds. I'm starting out with Moolahsense. But alamak, there is no funding campaign going on right now!? Have to wait.
Bore.
Meanwhile, I shall continue to be entertained by Viu, the best freebie app of the year. First, it was Descendants of the Sun, and now it's Entertainer and The Flower in Prison. Absolutely zero knowledge of Korean, so the English sub-titles help, lots. I think I'm beginning to speak a bit of Korean?
Entertained.
Time to tell wifey, "salanghae". I gave it a go. She didn't get it. Nevermind.
Anti-climax.
On the market front, the poor market conditions have continued to rue/rule. No excitement there. Actually there is, it's so bad, it's time for more buying!? With PE ratio so low and dividend yield so high, how not to experience a new high?
Interested.
It seems more and more companies are going offline, taken private. More signs of an unappreciated market and underrated stocks?
Excited.
Delighted.
Retail bonds have been launching non-stop of late. Interestingly, these are all from overstretched companies with mountains of debt. Junk bonds? Might as well give it a go with P2P loans. Lagi junk bonds. I'm starting out with Moolahsense. But alamak, there is no funding campaign going on right now!? Have to wait.
Bore.
Meanwhile, I shall continue to be entertained by Viu, the best freebie app of the year. First, it was Descendants of the Sun, and now it's Entertainer and The Flower in Prison. Absolutely zero knowledge of Korean, so the English sub-titles help, lots. I think I'm beginning to speak a bit of Korean?
Entertained.
Time to tell wifey, "salanghae". I gave it a go. She didn't get it. Nevermind.
Anti-climax.
15 June 2015
24 Tales in the Journey to Wealth
RETIREMENT
"Financial Independence, Retire Early" (FIRE) - that seems like a wonderful catch phrase to set the flames going. What does it take to achieve this burning desire? I think it boils down to a magic number.
[1. http://lizardorealm.blogspot.sg/2015/05/light-fire-can-i-retire-now.html]
STOCKS
Singapore Savings Bond.
This offering from the Singapore Government will be available to retail investor soon. While not a inflation-linked bond, it has some semblance of it. I will most certainly park some of my cash components here. That will serve as an emergency buffer that can be cashed out if needed.
[7. http://lizardorealm.blogspot.sg/2015/04/singapore-savings-bond-as-safe-as-it.html]
Central Provident Fund (CPF).
The compulsory savings into CPF actually is another bond component, offering steady and fairly risk-free growth. The only problem is the lock-in. The lock-in becomes less of a worry for someone like me who is reaching the half-century mark. CPF funds has serveed many useful purposes thus far, especially to fund housing (used), support the kids' education (an option not yet used), or invested into stock or unit trust funds if I prefer to take more risks.
[8. http://lizardorealm.blogspot.sg/2015/02/a-great-retirement-offer-from-cpf.html]
Even as the investment portfolios are being built up, it is also worthwhile to examine options to reduce 'leakages'.
Supplementary Retirement Scheme (SRS).
Taxation is such a killer, especially at higher incomes. One sure way to reduce the tax burden is to contribute to the SRS (and invest the money sitting in SRS!).
[10. http://lizardorealm.blogspot.sg/2015/02/one-way-to-avoid-paying-more-tax-srs.html]
Donations.
And if you have a charitable heart, donation is another way of reducing the tax burden while doing some good deeds.
[11. http://lizardorealm.blogspot.sg/2015/02/another-way-to-avoid-paying-more-tax.html]
Credit Cards.
Some people view credit cards as an evil thing. But used wisely, it can actually help reduce our expenses.
[12. http://lizardorealm.blogspot.sg/2015/06/4-credit-cards-with-great-cashbacks-and.html]
EXOTICS & ALTERNATIVES
There are many exotic options and alternatives to grow that investment pie. But be very careful! Perhaps, it suffices to keep things simple.
Crowdfunding.
A recent trend has been the growth of crowd-funding platforms. These have arrived on our shores, offering the lure of 12% returns or more. In reality, they are even more risky than junk bonds. I am keeping this in view for now.
[13. http://lizardorealm.blogspot.sg/2015/02/moolahsense-embarks-on-new-fundraising.html]
Starting a Business.
This requires more careful considerations. I'm not quite ready for that leap.
[14. http://lizardorealm.blogspot.sg/2015/01/running-cafes-as-business-owner.html]
Exciting Bank Offers.
This is an oxymoron. With the exception of the aforementioned special savings accounts, what can they offer that can do better than all the self-help options mentioned earlier given their exorbitant charges?
[16. http://lizardorealm.blogspot.sg/2015/05/a-fantastic-investment-deal-at-bank-or.html]
STAY HEALTHY
Be Healthy.
Most importantly, is to stay healthy. What's the point of an early retirement, if one is in bade health? Or worse, expired early!
[17. http://lizardorealm.blogspot.sg/2014/07/investing-and-dieting-wealth-and-health.html]
Medical Insurance.
But we can never be certain of good health. So medical insurance is a must in my view. Without this, all the savings and investments can be easily wiped out in no time. Sometimes, we really have to spend money to save money.
[18. http://lizardorealm.blogspot.sg/2015/04/thank-goodness-we-had-medical-insurance.html]
Staying Healthy on Cruise.
One can still enjoy life, even while on a food binge on a cruise. It's not that difficulty to stay healthy, really.
[19. http://lizardorealm.blogspot.sg/2015/04/not-too-difficult-to-stay-healthy-on.html]
ANTHOLOGY OF DISASTERS
Con Jobs.
These are just plentiful and are happening everyday. Always worth repeating the mantra, "if it sounds too good to be true, it probably is too good to be true". Greed is our greatest enemy. And the enemy is that person in the mirror.
[20. http://lizardorealm.blogspot.sg/2015/05/rags-to-riches-riches-to-rags.html]
[21. http://lizardorealm.blogspot.sg/2015/02/the-allure-of-gold-treachery-of-glitter.html]
Job Loss.
This can really be painful and disastrous. A family unit that has multiple wage earner helps diversify the risk. But for the single-income family, there really isn't any room. Best to move on and deal with the realities.
[22. http://lizardorealm.blogspot.sg/2015/05/what-do-you-do-if-you-get-laid-off.html]
Extravagance.
A lifestyle of living beyond one's means is a sure road to disaster. Live within your means. What you can't save isn't yours.
[23. http://lizardorealm.blogspot.sg/2015/05/a-millionaire-and-yet-completely-broke.html]
Careless Decisions.
Sometimes, we will make bad decisions and lose money. Hopefully, this doesn't happen too often and too painfully.
[24. http://lizardorealm.blogspot.sg/2015/06/sumiko-tans-money-no-enough.html]
--
"Good health, great wealth!"
Or should it be, "Good wealth, great health!"
"Financial Independence, Retire Early" (FIRE) - that seems like a wonderful catch phrase to set the flames going. What does it take to achieve this burning desire? I think it boils down to a magic number.
[1. http://lizardorealm.blogspot.sg/2015/05/light-fire-can-i-retire-now.html]
STOCKS
To achieve this outcome, I invest in the market, diversified across market regions, namely Asia Pacific (except Japan), global emerging markets, the US, Europe and Japan.
Unit Trust.
I use funds from the Supplementary Retirement Scheme (SRS) and CPF OA and SA funds to invest into Unit Trust on the Fundsupermart platform. Since each year I can contribute up to to $12,750 into SRS, that is the capital injection that goes into this portfolio. This unit trust portfolio is further complemented by ETFs. Fees in Unit Trusts are relatively higher compared to ETFs, but the latter tends to be less liquid.
Singapore Stocks.
A value investment approach in dividend paying stocks can be most rewarding. I diversify across the Singapore stock market by buying a dozen stocks (or two!) to spread the risks. The wonderful part of this is that I can happily collect dividends to reinvest while waiting as well. Of late, the dividends can run into an average of $1,000 a month. This will be the means by which I intend to generate the eventual passive income for retirement. The dividends would have been more, except that I typically take up the script offer (i.e. collect more units of stocks in lieu of cash), so as to continue to build up my portfolio, and at a discount from the market value.
[2. http://lizardorealm.blogspot.sg/2015/04/my-singapore-team-of-dividend-stocks.html]
US Stocks.
Likewise, for US stocks. I invest through POEMS which hold the US stocks as a custodian account. US stocks (if you pick carefully!) have a practice of steady dividend growth. So even if you do nothing, the dividends tend to hold stead or growth with each passing year. The only problem is the 30% withholding tax on the dividends. The custodian fee that POEMS charge is quite minimal really, so that I can live with.
[3. http://lizardorealm.blogspot.sg/2015/06/my-us-team-of-dividend-stocks-2015.]
Exchange Traded Funds (ETF).
Since I already hold diversified portfolios of Singapore and US stocks, the rest of the market regions are held via ETF, which complements the Unit Trust portfolio mentioned earlier. I prefer to hold ETFs that pay out dividends - or what I refer to as an Income ETF Portfolio.
Exchange Traded Funds (ETF).
Since I already hold diversified portfolios of Singapore and US stocks, the rest of the market regions are held via ETF, which complements the Unit Trust portfolio mentioned earlier. I prefer to hold ETFs that pay out dividends - or what I refer to as an Income ETF Portfolio.
BONDS
The stock portfolios are complemented by bonds and cash. While my plan was to maintain only 10% in bonds and cash (or bond-like instruments), it has typically reached 20%. In addition, I maintain 6 to 9 months worth of expenses in cash instruments.
Preference Shares and Retail Bonds.
These can be bought off the SGX. The coupon payments, usually half-yearly, provides yet another income stream.
[5. http://lizardorealm.blogspot.sg/2015/01/non-convertible-preference-shares.]
Bondsupermart.
More recently, a wider spread of bonds can also be bought through Fundsupermart. Aside from the few retail bonds, the majority will require hefty $250,000+ investments. Something beyond my reach and need for now, so it's something to keep in view as a future option. As an income stream, perpetual bonds can be quite attractive.
[6. http://lizardorealm.blogspot.sg/2015/05/bondsupermart.html]Bondsupermart.
More recently, a wider spread of bonds can also be bought through Fundsupermart. Aside from the few retail bonds, the majority will require hefty $250,000+ investments. Something beyond my reach and need for now, so it's something to keep in view as a future option. As an income stream, perpetual bonds can be quite attractive.
Singapore Savings Bond.
This offering from the Singapore Government will be available to retail investor soon. While not a inflation-linked bond, it has some semblance of it. I will most certainly park some of my cash components here. That will serve as an emergency buffer that can be cashed out if needed.
[7. http://lizardorealm.blogspot.sg/2015/04/singapore-savings-bond-as-safe-as-it.html]
Central Provident Fund (CPF).
The compulsory savings into CPF actually is another bond component, offering steady and fairly risk-free growth. The only problem is the lock-in. The lock-in becomes less of a worry for someone like me who is reaching the half-century mark. CPF funds has serveed many useful purposes thus far, especially to fund housing (used), support the kids' education (an option not yet used), or invested into stock or unit trust funds if I prefer to take more risks.
[8. http://lizardorealm.blogspot.sg/2015/02/a-great-retirement-offer-from-cpf.html]
Bank Savings Accounts.
Even the traditional banks can offer interesting saving accounts with higher interest rates. But a bit of acrobatics need to be done. This is the other component of my cash funds.
[9. http://lizardorealm.blogspot.sg/2015/06/how-can-we-stretch-interest-on-our-bank.html]
Even the traditional banks can offer interesting saving accounts with higher interest rates. But a bit of acrobatics need to be done. This is the other component of my cash funds.
[9. http://lizardorealm.blogspot.sg/2015/06/how-can-we-stretch-interest-on-our-bank.html]
MAXIMISING SAVINGS, REDUCING EXPENSES
Even as the investment portfolios are being built up, it is also worthwhile to examine options to reduce 'leakages'.
Taxation is such a killer, especially at higher incomes. One sure way to reduce the tax burden is to contribute to the SRS (and invest the money sitting in SRS!).
[10. http://lizardorealm.blogspot.sg/2015/02/one-way-to-avoid-paying-more-tax-srs.html]
Donations.
And if you have a charitable heart, donation is another way of reducing the tax burden while doing some good deeds.
[11. http://lizardorealm.blogspot.sg/2015/02/another-way-to-avoid-paying-more-tax.html]
Some people view credit cards as an evil thing. But used wisely, it can actually help reduce our expenses.
[12. http://lizardorealm.blogspot.sg/2015/06/4-credit-cards-with-great-cashbacks-and.html]
EXOTICS & ALTERNATIVES
There are many exotic options and alternatives to grow that investment pie. But be very careful! Perhaps, it suffices to keep things simple.
Crowdfunding.
A recent trend has been the growth of crowd-funding platforms. These have arrived on our shores, offering the lure of 12% returns or more. In reality, they are even more risky than junk bonds. I am keeping this in view for now.
[13. http://lizardorealm.blogspot.sg/2015/02/moolahsense-embarks-on-new-fundraising.html]
Starting a Business.
This requires more careful considerations. I'm not quite ready for that leap.
[14. http://lizardorealm.blogspot.sg/2015/01/running-cafes-as-business-owner.html]
Inheritance.
One could wait for an inheritance, if there is any to be had! But I wouldn't bet on this.
[15. http://lizardorealm.blogspot.sg/2014/12/20-years-and-200000-mothers-savings.html]
One could wait for an inheritance, if there is any to be had! But I wouldn't bet on this.
[15. http://lizardorealm.blogspot.sg/2014/12/20-years-and-200000-mothers-savings.html]
This is an oxymoron. With the exception of the aforementioned special savings accounts, what can they offer that can do better than all the self-help options mentioned earlier given their exorbitant charges?
[16. http://lizardorealm.blogspot.sg/2015/05/a-fantastic-investment-deal-at-bank-or.html]
STAY HEALTHY
Be Healthy.
Most importantly, is to stay healthy. What's the point of an early retirement, if one is in bade health? Or worse, expired early!
[17. http://lizardorealm.blogspot.sg/2014/07/investing-and-dieting-wealth-and-health.html]
Medical Insurance.
But we can never be certain of good health. So medical insurance is a must in my view. Without this, all the savings and investments can be easily wiped out in no time. Sometimes, we really have to spend money to save money.
[18. http://lizardorealm.blogspot.sg/2015/04/thank-goodness-we-had-medical-insurance.html]
Staying Healthy on Cruise.
One can still enjoy life, even while on a food binge on a cruise. It's not that difficulty to stay healthy, really.
[19. http://lizardorealm.blogspot.sg/2015/04/not-too-difficult-to-stay-healthy-on.html]
ANTHOLOGY OF DISASTERS
Con Jobs.
These are just plentiful and are happening everyday. Always worth repeating the mantra, "if it sounds too good to be true, it probably is too good to be true". Greed is our greatest enemy. And the enemy is that person in the mirror.
[20. http://lizardorealm.blogspot.sg/2015/05/rags-to-riches-riches-to-rags.html]
[21. http://lizardorealm.blogspot.sg/2015/02/the-allure-of-gold-treachery-of-glitter.html]
Job Loss.
This can really be painful and disastrous. A family unit that has multiple wage earner helps diversify the risk. But for the single-income family, there really isn't any room. Best to move on and deal with the realities.
[22. http://lizardorealm.blogspot.sg/2015/05/what-do-you-do-if-you-get-laid-off.html]
Extravagance.
A lifestyle of living beyond one's means is a sure road to disaster. Live within your means. What you can't save isn't yours.
[23. http://lizardorealm.blogspot.sg/2015/05/a-millionaire-and-yet-completely-broke.html]
Careless Decisions.
Sometimes, we will make bad decisions and lose money. Hopefully, this doesn't happen too often and too painfully.
[24. http://lizardorealm.blogspot.sg/2015/06/sumiko-tans-money-no-enough.html]
--
"Good health, great wealth!"
Or should it be, "Good wealth, great health!"
06 February 2015
MoolahSense Embarks on a New Fundraising Campaign
Looks like MoolahSense is getting its 2nd fund raising deal going. This was the headline in their e-mail to its members:
School Expanding into the Region.
Come on down to our closed-door info-session to find out more about the next
campaign launching on MoolahSense. Don't miss your chance to “Meet The Boss” and
get first-hand information about the business.
Time: 9 Feb, Monday | 7pm-9pm
Venue: 5 Teck Lim Rd, S088383
I would have a lot more confidence if this becomes a regulated line of business.
Previously:
Crowd Funding Comes to Singapore
School Expanding into the Region.
Invest in their Growth!
Come on down to our closed-door info-session to find out more about the next
campaign launching on MoolahSense. Don't miss your chance to “Meet The Boss” and
get first-hand information about the business.Time: 9 Feb, Monday | 7pm-9pm
Venue: 5 Teck Lim Rd, S088383
I would have a lot more confidence if this becomes a regulated line of business.
Previously:
Crowd Funding Comes to Singapore
29 January 2015
Crowd Funding Comes to Singapore - MoolahSense
In a previous post on Crowd Funding & Peer-to-Peer Loans, I had lamented that these services are only available in the US and UK. Singaporeans cannot take part in them as investors. But it looks like there is now a Singapore crowd-funding website providing Peer-to-Peer (P2P) lending service that has started operations - check out MoolahSense.
MoolahSense was featured in an article from The Edge recently. According to The Edge, the company had obtained clearance from the Monetary Authority of Singapore (MAS) and the Ministry of Law to proceed as a unique asset class after having engaged them for two and a half years. I imagine the complexity to get this going. On their website itself however, there is a disclaimer that this product/service is not regulated by MAS.
For the borrower, the minimum sum to be raised is $100,000. The borrower needs to have at least one year of audited financial statements. MoolahSense would also conduct some level of background checks. For the investor, a minimum loan offered is $1,000. Only Singaporean residents are accepted as investors.
Essentially, the borrower starts a campaign to raise funds over a period of 30 days. Bids would be obtained from prospective borrowers and the lowest interest rates bid within the amount to be raised will be awarded.
There are of course no guarantees. Such loans from small-medium enterprise (SME) can fold up if the company go belly up, hence the high rate of interest offered. I view such loans as similar to junk bonds.
MoolahSense appears to have only started business not so long ago. There may have been only one campaign that has taken place and it may be facing difficulty getting more borrowers interested to come on board. Nonetheless, it has been extremely active in promoting their P2P platform at many events, and has even gone on to live TV such as CNBC.
Separately, SGX also appears to be working with a partner to develop the crowd funding market. Perhaps the scene will get livelier in time to come. Not sure if this option would be available to the retail investor though.
For the borrower, the minimum sum to be raised is $100,000. The borrower needs to have at least one year of audited financial statements. MoolahSense would also conduct some level of background checks. For the investor, a minimum loan offered is $1,000. Only Singaporean residents are accepted as investors.
There are of course no guarantees. Such loans from small-medium enterprise (SME) can fold up if the company go belly up, hence the high rate of interest offered. I view such loans as similar to junk bonds.
MoolahSense appears to have only started business not so long ago. There may have been only one campaign that has taken place and it may be facing difficulty getting more borrowers interested to come on board. Nonetheless, it has been extremely active in promoting their P2P platform at many events, and has even gone on to live TV such as CNBC.
Separately, SGX also appears to be working with a partner to develop the crowd funding market. Perhaps the scene will get livelier in time to come. Not sure if this option would be available to the retail investor though.
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