2018 has been a big year for Funding Societies – as we successfully crowdfunded over S$300m of SME loans across the region with investors like you! As we wrap up the year, here is a list of our top 5 investment-related articles in 2018 that you may find useful, covering topics from P2P lending to loan fact sheets!
1. An Overview of P2P Lending in Singapore
If you have ever considered venturing into alternative investment options such as peer-to-peer (P2P) lending, then “An Overview of P2P Lending in Singapore” is the article for you.
This article provides a closer look at the important components of P2P lending such as its risk, returns and opportunities. P2P lending is an alternative financing option for businesses to obtain funds without traditional financial institutions. It has been growing rapidly in the past few years and has quickly become a new way for investors to diversify their portfolios. Find out how P2P lending serves both the needs of SMEs and investors.
2. Why a Loan Default Does Not Mean a 100% Principal Wipeout
A guest post by an avid user on Crowdfund Talks discusses “Why a Loan Default Does Not Mean a 100% Principal Wipeout”.
This article discusses the two most asked questions by investors regarding defaults on P2P loans, namely “If a loan defaults, will I lose 100% of my principal?” and “When a loan goes into default, is it non-recoverable?”. If these questions have ever crossed your mind, you should hop on over to the article to learn more about his perspective on these issues.
3. Understanding The Loan Fact Sheet
One of the key steps to becoming an investor on Funding Societies is to understand the loan fact sheets provided on the businesses you can potentially invest in. “Understanding the Loan Fact Sheet” will walk you through the important information that investors should take note of when considering a new crowdfunding opportunity such as the loan details, repayment schedule and company’s summary, etc.
The loan fact sheet summarises Funding Societies’ risk-based assessment of the business’ creditworthiness, based on key components of the business such as its financials, repayment behaviours, etc. Thorough reviewing of the fact sheet will allow investors to make an informed investment decision.
4. What is an Escrow? How does it work?
Common concerns of potential investors include: How do investors ensure that their funds will reach borrowers? How is the fund provided protected if the platform goes bankrupt? Well, the answer is escrow accounts, which are used to establish transparent transactions and give you peace of mind. You can find out more here on “What is an Escrow? How does it work?”.
Funding Societies was the first P2P lending platform in Singapore to use an escrow. We engage Vista Trust Singapore, which is regulated by the Monetary Authority of Singapore (MAS).
5. What You Can Expect When Investing with Funding Societies
Southeast Asia has seen significant growth in the P2P lending landscape in recent years, predominantly spearheaded by Singapore. We have onboarded more than 70,000 investors across Singapore, Indonesia and Malaysia and is the only P2P lending platform to have received the MAS Fintech Award in 2016.
If you are looking to start investing with us, this article “4 Things You Can Expect When Investing with Funding Societies” helps to summarise the potential returns, user interface and updates you experience on our platform.
Please note that the information is meant purely for informational purposes and should not be relied upon as financial advice. Users may wish to approach a financial advisor before relying on any advice provided by the website to make any decision to buy, sell or hold any investment product.
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