Good Deeds Paid Off – Withdrawal of Loan SB-1605024

As you’re aware, Funding
Societies take credit assessment and defaults very seriously. To us, safe growth is more important than
fast growth
. This is evident from our default rate of 1.8% (as of June
2016), which is much lower than that of comparable platforms. It’s a principle shared
by our Board of Directors, management and team.

 

Our principle was put
to test a few weeks ago. The loan SB-1605024 for S$ 300,000 was creditworthy
and fully subscribed by investors. The borrower has millions in revenue, excellent
margin and overall good profile. Typical before disbursement, we conducted a
second check and found that a new credit litigation for S$ 150,000 has been
filed against the borrower in the span of days. Should we disburse the loan?

 

After detailed deliberation,
we decided to cancel the loan and release the committed funds back to
investors. It’s a costly decision. However as the clearance of litigation takes
time, the borrower’s creditworthiness may quickly change. We believe it’s the
right thing to do, but are terribly sorry to our investors for the idle funds and
inconvenience caused.

 

To our surprise, we
received numerous positive responses, including:

 

 “Thank you, I am impressed with your diligence
in this matter.”

 

“Thanks for the update. I am
glad that there is an existing process for secondary check prior to
disbursement of fund. Much appreciated that you also took the difficult
decision to cancel a fully funded facility in order to protect investors’
interest.”

 

“Thanks for keeping [us] informed. Appreciate your proactive step to verify borrower and stop the
disbursement.”

 

“Team FS, thank you for
update. Better be safe than sorry; so far FS approach is working… Keep it up!”

 

“Well done guys! Keep up the
vigilance! Thanks”

 

We just want to thank all the investors who have been with us
through thick and thin, appreciative of the extra miles we’ve gone for investor
protection, and patient with us when such protection causes inconvenience. We
strive to continuously improve and serve you better. Thank you!