Investors on our platform are provided fact sheets for each and every crowdfunding opportunity. The fact sheet provides all the pertinent information with regards to the investment opportunity.
Funding Societies provides a risk-based assessment of the SME’s creditworthiness; based on the company’s business model, financials, directors’ credit scores, and its repayment behaviors. Funding Societies conducts site visits and interviews with directors of these SMEs to ensure that its portfolio of borrowers is of quality and is able to repay. It may be helpful for investors to review the loan fact sheet.
Sample fact sheet from Funding Societies
The loan fact sheet contains the following information:
Within the loan fact sheet, you can find information on the principal amount, the interest rate and the tenure of the loan. The two most common types of interest rate; simple interest rate and effective interest rate are also reflected.
Investor’s Repayment Schedule
The loan repayment schedule can also be found on the loan fact sheet.
The Company’s Summary
This includes the date of incorporation, the industry, the years of operations, the company’s business nature, its paid-up capital, number of employees and repayment behaviour.
Risk Snapshot of Business
For investors who would like to obtain a quick overview of the business, the risk snapshot shows the business strengths and weaknesses. Investors can evaluate the business strengths and weaknesses to help them decide on the investment.
All of our SME clients are required to pledge a personal guarantee when applying for a loan with Funding Societies. This includes the duration of the directorship of a director in the company, his financing records and repayment behaviour, and any involvements in litigations. Funding Societies provides the Credit Bureau Score of the directors.
The fact sheet also contains the following financial information:
The P/L and balance sheet of the company as well as financial ratios, including Revenue Growth, Gross Margin, Net Margin, Current Ratio, Quick Ratio, Leverage Ratio, Pre-tax Interest Coverage, Return on Net Worth, Receivables Turnover, Total Asset Turnover.
The P/L stands for profit and loss statement. The P/L calculates the profit or loss for a specific time period of one year. It shows the business total revenue and expenses and profit.
The balance sheet, shows the assets, liabilities and shareholder equity. With information from both the balance sheet and P/L, the financial ratios can be derived and can then be used to evaluate the overall financial condition of a business.
Given the large amount of information available, investors should decide which ratio works best in their investment strategy.
Under the comments section, information on company profitability can be found. Investors may wish to note the company’s current debt exposures, its financing records and past debts and liabilities with Funding Societies as well as other financial institutions.
In conclusion, investors can make use of the information available on the fact sheet to assist them in making a more informed decision in their investment.