Peer-to-peer lending, or P2P lending, utilizes technology and big data to connect investors and small and medium-sized enterprises (SMEs) looking for business funding. To investors, it can function as an alternative investment that gives them an opportunity to earn passive income by financing business loans for SMEs.
In Southeast Asia, P2P lending has witnessed significant growth in recent years, led predominantly by Singapore. To date, around 60 platforms are currently operating in the online lending and crowdfunding space, which have become an increasingly popular alternative investment option.
If you’re wondering how you can take part in investing with P2P lending, Funding Societies would be a great place to explore. As of May 2018, Funding Societies has onboarded more than 70,000 investors across Singapore, Indonesia and Malaysia and provided more than S$160 million worth of investment opportunities in crowdfunded loans.
Here are four things you can expect when investing in P2P lending through Funding Societies.
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Investments with short tenors
Funding Societies offers three investment products: Business Term Loan, Invoice Financing, and the newly launched Property-Backed Business Loan. Business Term Loan allows you to make investments by financing SME loans with tenors ranging from 1-12 months. In return, you will receive monthly repayments of principal and interests. You can maximize your returns by reinvesting your repayments to new loans.
Meanwhile, with Invoice Financing, SMEs would be able to cash out by pledging their invoices to Funding Societies. Invoice Financing has a shorter tenor, which generally lasts for only 30-120 days with a one-time repayment of principal and interest at the end of the tenor.
With Property-Backed Business Loan, investments are secured by a property (residential, industrial, or commercial). Different from the other products, Property-backed Business Loans offer security in the form of property as a collateral, and is a good option to add diversification to your investment portfolio.
Potential returns as high as 14% p.a.
As an investor, the returns you get from your P2P lending investments come in the form of interests paid by SMEs.
Given that P2P loans are generally more flexible in its tenor and SMEs that get financing from Funding Societies have shorter or imperfect operational track records, interest rates are determined accordingly based on risk, in the range of 8-14% p.a.. Higher risks typically come with higher returns, so investors should invest based on their appetite for risk.
Regular updates from the platform
Expect to get regular updates from Funding Societies as an investor on the platform! With every important event or update, the platform sends alerts via email or in-app notifications so that investors are constantly kept up to date with us.
For instance, whenever there is an upcoming loan for crowdfunding, investors will receive an email notification. In the event of late repayment or if there’s an update for specific loans, Funding Societies will also communicate in the quickest and most transparent way. So make sure you switch on your app notifications for any important alerts!
If you need any further clarifications, Miyu, Funding Societies’ very own chatbot, and our customer experience (CX) team will be happy to answer all of your questions via live chat. Or call us at 62210958 to have a quick chat with our team.
Well-designed User Interface (UI)
Funding Societies Website
Funding Societies Mobile App
Investors should be able to review their portfolios easily. That’s why Funding Societies’ website has recently been improved to provide details of your investment portfolio in a clear and concise manner.
In addition, since 80% of Funding Societies’ investors access our platform via their mobile phone, the company has created a Funding Societies mobile app to cater to all mobile users out there. As an investor, you can review your portfolio, change your auto-invest settings, crowdfund a loan, and even use the live chat feature — all in one app! It’s simple, convenient and efficient.
Funding Societies is also constantly taking feedback from investors and working on them to improve the whole experience for you.
About Funding Societies
Funding Societies is the leading digital P2P lending platform in Southeast Asia and is operating in Singapore under the Capital Markets Services license issued by the Monetary Authority of Singapore (MAS). Recently, it has raised a Series B round of funding, the largest by a P2P lending platform in Southeast Asia. Funding Societies is also the only P2P lender to have received the Fintech Award given by MAS.
Sign up as an investor with Funding Societies now!