Unsecured Business Loans, Invoice Financing & now… Secured Loans! Invest & Diversify your portfolio today.
 
 

Frequently Asked Questions


General FAQ

MoolahSense is Singapore’s pioneer and first fully licensed marketplace lending platform where people invest directly in local businesses for fixed returns whilst supporting the core of our economy and fostering the entrepreneurial culture in Singapore.

 

Using information sourced from official sources and information providers, MoolahSense reviews all applications before businesses (corporates and limited liability partnerships) are allowed to list on the platform.

 

Investors then select who they wish to invest in by submitting their offers on our platform. Investors can spread their risks by investing across different businesses. Embodying the spirit of access, an investor can start investing from S$500. View full disclaimer HERE.

 

With MoolahSense, businesses can raise funds from the ‘crowd’, diversify their source of financing and become empowered to accept their target interest rates. On the other hand, investors gain access to opportunities with potentially more attractive yields and participate together with businesses in their journey for growth.

With the innovation found only at MoolahSense, the platform provides investors and businesses with two allocation mechanisms: (1) Auction - similar to reversed-Dutch auction and COE bidding exercise; and (2) First-Come-First-Served. See the infographics below for quick illustration.

Yes, MoolahSense is regulated by the Monetary Authority of Singapore (MAS). We have been issued with a Capital Markets Services License (No. CMS100568-1) on 11 November 2016.  

Prior to launching our platform in November 2014, MoolahSense had consulted with the MAS and obtained clearances that our business model (of facilitating the issuance of promissory notes by businesses through our platform) does not infringe on existing regulations.

 

Contract notes are issued through the platform where the investors and business issuer are contractual parties to each note. MoolahSense is not a party to the contract. These contract notes are enforceable in Singapore. Each contract is formed after a process of offer and acceptance occurring electronically on the platform.

Where possible, when documentary proofs are submitted, the MoolahSense team verifies the information as an independent third party. If the information disclosed by the issuer tallies with the documentary proofs that have been submitted, MoolahSense applies a "verified" status next to the information field. While checks are performed in good faith and best effort basis, MoolahSense cannot guarantee against possible fraud or other malicious intents.

Only registered members (with investor and business accounts) of MoolahSense can gain access to the information and services provided by the platform. To gain access, identification proofs are required.

MoolahSense reserves the right to suspend or terminate a member's account if it appears an account has been used in breach of the Code of Conduct or any applicable laws. Click HERE to read the Code of Conduct.

You could refer HERE for a step by step guide on how to complete the investor registration process. 

Yes, you can still invest directly even after you have subscribed to any of our AA services. 

 

Registration & Privacy

You can register as an individual investor member if you:

 

1. are 18 years old or above;

2. are a Singapore citizen or permanent resident, foreigner residing in Singapore with a valid employment pass, dependent’s pass or student pass; and

3. have a banking account with a local bank or foreign qualifying full bank in Singapore

 

You can register as a corporate investor member who:

Represents a Singapore-registered body corporate with ACRA (Currently, we do not admit charities and religious organizations) and submit the required documents below:

 

1.       Certified true copy of the latest ACRA Bizfile Business Profile Report

2.       Certified true copy of the Limited Liability Partnership Agreement/Memorandum & Articles of Association (M&A)

3.       Proof of Identity of Directors/Partners/Managing Partner

4.       Proof of residential address of all the authorized Directors/Partners/Managing Partner in the Resolution

5.       Proof of local trading address, dated within the last six months

6.       A corporate bank account with a local bank or Foreign Qualifying Full Bank in Singapore

 

Upon registration, click on ‘Investor’ on the signup form and select ‘Individual’ or ‘Corporate’ under the ‘Investor Type’ field.

You could refer HERE for a step by step guide on how to complete the investor registration process. 

If you wish to become an investor with MoolahSense, you are required to complete and submit the online Investor Profile Registration Form.

You could refer HERE for a step by step guide on how to complete the investor registration process. 

MoolahSense holds a Capital Market Services Licence issued by the Monetary Authority of Singapore (“MAS”). The Investor Profile Registration Form is an integral part of MoolahSense’s compliance with the MAS’s “know your customer” requirements, which is aimed at preventing financing institutions from being used intentionally or unintentionally by criminal elements for money laundering or for financing terrorism.

You are required to submit documentary proof of your identity (i.e. a photograph or scanned copy of your NRIC or passport) and current residence (e.g. utility bill, internet bill, telephone bill, bank statement, credit card statement, mortgage statement, insurance policy statement, any bill / letter / statement issued by a government agency). We require you to submit these documents so as to comply with the requirements of being a holder of a Capital Market Services license.

If your application as an investor has been approved after you have submitted the Investor Profile Registration Form online, you will be required to upload your bank statement or a fund transaction screenshot on the Profile page of your dashboard. 

 

You will be eligible to invest on our platform after your Investor Profile Registration Form submitted online has been approved by us and you have uploaded your bank statement or fund transaction screenshot.

If you have invested with MoolahSense before the online Investor Profile Registration Form was introduced and wish to continue investing with MoolahSense, you will be required to complete and submit the online Investor Profile Registration Form. If you do not wish to invest on our platform, you may request us to suspend your account so that you are able to view the details of your investments on your dashboard and withdraw any monies that are in your MoolahSense account.  

No. Your qualification will depend on the responses you have provided on the 'Qualifications and Suitability' page of the Investor Profile Registration Form as well as whether you are found to be on any money laundering, terrorism financing or other applicable blacklists following our screening. 

 

We will approve your application as an investor if the responses you have provided on the 'Qualifications and Suitability' page indicates that you are suitable to invest in our products and if our screening does not disclose that you have been involved in money laundering, terrorism financing or other blacklisted activities.   

To date, all investors have been enjoying our services free of charge. As we continue to scale our business, we need to stay ahead in an extremely competitive market. Therefore, we will be introducing “Investor Servicing Fees” in due course. For more information, please read our blog here.

The purpose of these fees is to ensure the provision of a high-quality service in collecting and recovering payments. In Singapore, we were the ONLY platform to have elected not to charge investor servicing fees at inception till date.

In fact, to our knowledge, all other platforms levy such fees right from the start. We are glad that investors on our platform were able to enjoy the full benefit of our collection and recovery services, which we were happy to provide and absorb for investors. At the same time, we seek your understanding and recognition that such services require considerable effort to perform and this requires dedicated resources to be effective.

To further clarify, servicing fees will only be charged only after a repayment is made, and not taken upfront. If there are no repayments, no fees will be collected. Hence, this is fully aligned with the investor in getting their repayments and returns. And of course, there are no plans to charge retrospectively. It shall only apply at such time going forth when we make the announcement.

This is displayed in "Your Investments" section of the dashboard. For more information, please read our blog here.

Your personal information are kept with strict confidentiality. For enquiries on Personal Data Protection Act (PDPA), click HERE.

Upon registration, you would need to establish a unique display name that will be visible to other investors on the dashboard (under the 'Live Offers' menu). When there is a successful match and you are an allocated investor in the contract with the Issuer, for legal purposes, your real name will be included as a key term on the final contract note (See Contract Note under General FAQs). No other investors will be able to see your real name or details, and note contracts are not disclosed other than to an issuer unless required by Singapore law or regulation.

We will revert to you on the outcome via email within 3 business days after you have submitted the form online. 

We have obtained confirmation from the Insolvency and Public Trustee's Office (IPTO) that the activities by investors on the platform do not fall under the purview of the Moneylenders' Act.

Investing

MoolahSense provides investors with the opportunity to invest in SMEs by financing their business loan request and/or invoices in exchange for a fixed rate of return on their investment capital.

Business Loans

An investment in a business loan entails investing in a business that pays interest on your investment loan. These investments could be either secured or unsecured. A secured business loan involves the business pledging a collateral (e.g. property, accounts receivables, vehicles, furniture and fittings, etc.) in return for a loan. For an unsecured business loan, the business is not required to pledge a collateral to obtain a loan.  

MoolahSense requires each business that raises capital from its investors to provide at least one personal guarantor for the loan. The loan tenure of a business loan ranges from 3 months to 24 months. The repayment frequency of the loan principal and interest will depend on the loan structure.   

Invoice Financing

Investing through financing an SME’s invoice provides immediate capital to the latter who obtains financing of their tax invoices for cash. No assignment or transfer of the invoice is carried out.  Instead, the invoice provides an indication that the SME is likely to receive an inflow of cash (i.e. the payment from the SME’s customer) on the payment date of the invoice, which will in turn provide cash for the SME to repay the invoice financing loan. 

The tenure for financing an invoice typically ranges from 15 to 90 days. The terms of the invoice financing loan provides for the principal and interest to will be repaid to investors on the maturity date of the invoice financing period, which is linked to the payment date of the invoice. 

An investment in a secured business loan is backed by a collateral pledged by a business raising capital whereas an unsecured business loan investment is not backed by a collateral. 

 

On the other hand, an investment in invoice financing involves lending money to a business in connection with a tax invoice furnished by the business.  No assignment or transfer of the invoice is carried out.  Instead, the invoice provides an indication that the SME is likely to receive an inflow of cash (i.e. the payment from the SME’s customer) on the payment date of the invoice, which will in turn provide cash for the SME to repay the invoice financing loan.  

MoolahSense operates with a full Capital Markets Services Licence (MAS Licence No: CMS-100568-1) and is regulated by the Monetary Authority of Singapore. The Licence was awarded on November 11, 2016.

 

 

The licence enables MoolahSense to credibly provide opportunities to Retail Investors, High Net Worth Individuals and Private Funds to access a new asset category of SME loans by applying a full range of exemptions under the Securities and Futures Act. This includes the offering of securities to investors under the Small Offers and Private Placement exemptions.

Yes. A contract will be issued through the platform where investors and the business issuer are contractual parties to it. MoolahSense is not a party to the contract. These contract notes are enforceable in Singapore. Each contract is formed after a process of offer and acceptance occurring electronically on the platform.

All investment campaigns will be made available for investment until it is fully funded by investors, accepted by the Issuer or when 21 days has passed after its launch, whichever earlier. 

Investors are encouraged to login to the platform and check out all available ongoing campaigns on a regular basis.

The minimum offer is S$500 and in subsequent increments of S$500.

Before placing an offer, you need to ensure that there are sufficient funds in your MoolahSense account, otherwise the offer cannot be submitted.

The funds will be earmarked for that particular note subscription and cannot be used to make another offer unless it is first withdrawn.

For example, you have S$2,000 in your account. After making an offer of S$1,000 to a prospective issuer, the S$1,000 will be earmarked and only S$1,000 is available for withdrawal or to make another offer.

An eligible offer is an offer that is at or below the associated target interest rate specified by the prospective issuer.

No. All investment (i.e. subscription) offers that are made on our platform are final and cannot be withdrawn unless the remaining investors' offers are sufficient to fully fund the issuer's loan quantum (e.g. in an auction campaign which is over-subscribed) or when the campaign you had invested in is not accepted by the Issuer or is being withdrawn. We will refund the monies that you had invested if the campaign is not successfully executed.  

 

Yes, you can make multiple offers to the same prospective issuer or to different issuers 'LIVE' campaigns as long as you have sufficient funds in your MoolahSense account. Investors can spread their risks by investing across different businesses. View full disclaimer HERE.

For secured and unsecured business loans, you can expect a target interest rate of up to 12% and 21% per annum respectively. For invoice financing, you can expect a target interest rate of up to 12% per annum.  

There are two types of allocation mechanism that determine investment returns:

(1) Auction - a market-driven approach that determines the final interest rate that is assigned to each matched note.

A prospective issuer first indicates the target rate he is willing to pay. As an investor, you state your desired rate of return. If your offered rate is higher than the prospective issuer's target rate, your offer is not eligible and cannot be accepted. Whether your offer is selected for acceptance depends on how competitive your offer is vis-a-vis other eligible offers. Only the lowest interest rate offers that cumulatively and eligibly satisfy the prospective issuer's requested amount are selected for acceptance. The final rate assigned to all allocated offers shall be the highest rate in the selected pool, but not higher than the target rate.

(2) First-Come-First-Served - the interest rate is pre-determined by a prospective issuer where the interest rate is fixed on a matched note.

 

When the issuer accepts the offers, a provisional contract is formed between the issuer and each allocated investor. Both the issuer and investors are bound by the terms of the contract note executed in this manner, having endorsed the platform's terms and conditions.

Once the final note has been endorsed by the Issuer, an email confirmation will be despatched to the issuer and allocated investors. The details will also be updated on each respective account.

This convenient service enables all qualified investors to set their investment preferences and participate in a campaign without having to login to the platform. Subscribing to this service gives you a unique AA contract ID number which is allocated on a first come first serve basis.

An investor can set investment preferences based on the following:

Investment amount per campaign
Total number of campaigns
Investment frequency
Note types
Industry
Interest rate

Based on the above criteria and your Contract ID, your investment will be pre-allocated to the matching campaign subject to funds being available in your account. 

The main benefits of auto allocation is that the investor does not need to manually log into our platform to submit an investment offer and importantly, the allocation of the investment funds is prioritised over an investor who chooses to submit an investment offer directly. 

 

There are two types, i.e. the AA service and the AA Prime Service. All our AA services are only open to qualified* investors on our platform. 

*A qualified investor is one that is eligible to invest in the campaigns available on our platform.

 

The AA Prime service is an priority membership scheme where investors will have to pay an annual subscription fee. There are currently charges for investors who wish to sign-up for the AA service. In addition, where priority of allocation of funds is concerned, investors subscribed under the AA Prime service will be given a higher priority over investors subscribed under the AA service.  

Each AA Prime member is allocated a unique contract ID number on a first-come-first-serve basis. This will allow you to retain your priority position even after your AA subscription is deemed complete and is scheduled for renewal.

 

Please login to your dashboard and click on the Auto Allocation banner visible on the right hand side.

 

No. The Auto Allocation services are optional for all investors.

 

Currently, the AA service is free of charge. However, we may introduce new fees in the future. All registered investors will be notified of any changes.

For our Auto Allocation Prime service, there will be a $100 subscription fee charged per annum given that this is a premium service. This fee is payable upfront. 

 

The minimum investment per campaign is S$1000. Subsequent increments can be made in multiples of S$1000, capped at S$5000 per campaign.

 

No. All preference settings are limited to the fields available in the online Auto Allocation subscription form.

 

No. Once an offer is made via AA it is considered final and cancellation is not possible. However, in the event an SME does not accept the loan, the invested amount will be credited back to your MoolahSense account.

 

All allocations are made on a first-come-first-serve basis. The order of priority is as follows:

 

1) Investors who have subscribed to the Auto Allocation Prime service

2) Investors who have subscribed to the Auto Allocation service

3) Investors who choose to submit an investment offer directly

 

Oversubscription occurs whenever the amount of funds available for auto allocation exceed the amount of funds which an Issuer is raising for its campaign.

In the event of an over-subscription amongst AA Prime subscribers, we will adopt a first-come-first-served allocation mechanism to determine which subscribers will have their investment funds allocated. In such a scenario, priority will be given to those who have signed up or renewed their subscription on an earlier date. Certain Auto Allocation Prime service subscribers as well as all other qualified investors will not be able to participate in the campaign as a result.

In the event of an over-subscription amongst Auto Allocation Prime service and Auto Allocation service subscribers, all Auto Allocation Prime service will have their investment funds allocated and we will adopt a first-come-first-served allocation mechanism to determine which Auto Allocation service subscribers will have their investment funds allocated.  In such a scenario, priority will be given to those who have signed up or renewed their subscription on an earlier date. Certain Auto Allocation service subscribers as well as all other qualified investors will not be able to participate in the campaign as a result. 

 

We will carry out the allocation for our eligible Auto Allocation Service subscribers one day prior to the campaign launch date. Investors who have signed up for any of our auto allocation services on the day which the campaign allocation will take place would not be eligible. They will only be eligible for campaign allocation one business day after they have signed up.  

 

We will determine this based on what the auto allocation service subscriber had indicated on the ‘investment frequency options’ field contained in the auto allocation subscription form that was submitted online.

For newly signed up subscribers, the week in which they have been successfully subscribed into the service will be considered their first week of subscription, regardless of the day which their subscription has commenced. The week that follows will correspondingly be considered as the subscriber’s second week of subscription and so forth.  

For example, if an investor had successfully signed up for our auto allocation service on a Wednesday and chosen to invest in one eligible campaign per 2 weeks, the latter will be allocated an eligible campaign on Wednesday or after during the week or the following week after the subscription has been activated.   

 

Risk

All secured business loans are secured against a collateral. In the event that the business is unable to fulfill its loan repayment obligations, MoolahSense will be able to sell or receive payment on the collateral and make repayments to investors. 

As a mandatory requirement, the financial value of the pledged collateral must be greater than the total loan amount that the business wishes to obtain. 

For unsecured business loans, it is not pledged against any physical collateral. While not technically a collateral, directors of the Business are required to provide personal guarantees on their loan.

In invoice financing, no assignment or transfer of the invoice is carried out.  Instead, the invoice provides an indication that the SME is likely to receive an inflow of cash (i.e. the payment from the SME’s customer) on the payment date of the invoice, which will in turn provide cash for the SME to repay the invoice financing loan. Moreover, the directors of the Business are required to provide personal guarantees on the financed invoice.

At MoolahSense, we have developed a proprietary credit assessment model that assesses potential Issuers according to the nature and outlook of the industry they operate in, the strength of their financials and overall business model as well as the background and character of its Directors. 

MoolahSense's principal role is to:-

  1. Perform introductory functions on behalf of prospective issuers and investors for the issuance of notes
  2. Provide a streamlined process for the issuance of notes (including the development of standard contract Note)
  3. Facilitate the payments and collection of sums due under or in connection with those Notes (including taking certain actions on behalf of investors upon an issuer's default or if the issuer becomes, or is likely to become, insolvent).

MoolahSense is not be a party to any Note, save for third party rights granted under such Agreement.

All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. You can spread your risks by investing to multiple campaigns 'SME Notes' across different industries and construct a portfolio of short-term notes.

MoolahSense has put in place comprehensive arrangements so that in the event that MoolahSense goes out of business, the notes that have been successfully issued on the platform will be unaffected and investors will continue to receive their monthly repayments.

As investors are financing directly to businesses, the parties to the note are between the investors and the borrower ('issuer'). These contracts remain in place and are unaffected. MoolahSense has entered into a back-up servicing arrangement with DP Information Group to transfer the servicing functions of all outstanding notes to provide continuity in the event that MoolahSense becomes insolvent.

Repayments

For Business Loans, Issuers will make their loan repayments according to the payment structure of the Promissory Note, which will be either one or a combination of the following:

 

a) Bullet – investors will receive a lump-sum repayment, consisting of both principal and interest, at the end of the loan tenor (either 3 or 6 months)

 

b) Equal Instalment – investors will receive a fixed repayment, consisting of a portion of the principal and an amortised interest monthly, for a period of up to 24 months

 

c) Interests Only – investors will receive interest repayment every month. The lump-sum repayment of the principal will be made upon the maturity of the loan

 

d) Payment Holiday - This is a slight variation of the Equal Instalment payment structure. Investors will receive interest repayments only during the first three (3) months and monthly equal instalments of principal and interests in the next nine (9) months

 

e) Callable - An issuer has an option to redeem the contractual note early on a quarterly basis. If the note is not redeemed, the issuer pays interests on a quarterly basis and the principal will be repaid on the quarter that the redemption is early called or on the maturity date

 

For Invoice Financing, Issuers will make payment, comprising of the principal amount you extended to finance an invoice and the interest, on the maturity date of the invoice financing period, which typically lasts for 15-90 days.  

 

Before investing in a campaign, you can check the issuer’s indicated tenor on the MoolahSense Dashboard. The repayment dates will be indicated in the contract note and under the Offers Table on your Dashboard.

 

 

We will credit your repayments into your MoolahSense account 3-4 business days after the scheduled repayment date that is indicated on the issuer’s contract note. This is to allow for the transactional clearance of the multiple channels of payment currently used by our issuers.

As and when the issuer makes any repayment, the monies that the latter has repaid will go towards paying the late interest owing to investors first. All remaining monies will then be used to clear the outstanding interest and principal amount owing to investors. 

Yes. On the investors dashboard, we use a colour coding system to inform investors whether an issuer is prompt or late in its repayment. In addition, investors will be able to view the detailed repayment schedule of each issuer they had invested in on their dashboard. To find out more about your dashboard, please CLICK HERE

 

MoolahSense will manage late repayments with a 3-stage process.

Stage 1: If the issuer misses, fails to pay or only partially pays the repayment on any due date, MoolahSense will activate procedures to email, SMS or call the issuer. Every action and feedback (or lack thereof) obtained from the issuer will be recorded on the platform and communicated to all affected investors.

Stage 2: If the issuer fails to remedy the missed/late/partial repayment after 30 days, MoolahSense may activate the debt collection services of 3rd party professional debt collectors to collect the money on the investors' behalf. We currently partner with Datapool (S) Pte Ltd. Datapool is Singapore’s leading collections and account receivables management agency with 34 years of track record in recovering corporate and consumer debts.

Stage 3: If the missed/late/partially paid repayment remains not remedied after 90 days from the onset of the first due date, MoolahSense may categorize the issuer as in "default". This means that the note will be terminated and the outstanding balance (including interest till the end of the original term, late payment fee, late payment interest) will become immediately due and payable. MoolahSense will then seek out solutions and present cost-benefit analysis to the affected investors. Affected investors will be invited to vote to obtain a quorum to proceed on the next course of action, which may include authorizing MoolahSense to pursue their collective interests at their own costs. MoolahSense shall also report such default in payment to the credit bureaus which will have a detrimental mark on the credit standing of the issuer.

 

If an issuer misses a payment and fails to remedy the missed payment within 3-4 business days after the scheduled repayment date, we will provide an email update within the next 2 business days. We will seek to engage the issuer to provide the reason why it has missed the payment.

 

From thereon, if the repayment remains outstanding, investors will continue to receive progress updates either once or twice a month, i.e. on the 2nd and / or 4th Friday of each month. We expect the communication frequency for the majority of cases to be twice a month though. If the 2nd and / or 4th Friday of the month falls on a public holiday, we will send you the email the next business day.  During this period, we shall continue to engage with issuers and encourage them to get back on track with their outstanding repayments. In many cases, issuers are able to make repayments that result in full recovery. 

 

We may review and revise the frequency of such periodic email updates for an issuer if it becomes apparent that payments will not be forthcoming for an extended period of time e.g. if the issuer is wound up or the Director or Personal Guarantor becomes bankrupt.

 

In addition to these periodic update(s), we will endeavour to inform investors via email as soon as possible should we become an aware of the occurrence of a materially adverse event with regards to an issuer (e.g. bankruptcy of Personal Guarantor, winding up of an issuer, etc.). 

Investors will have to bear the costs of the certain legal actions (e.g. bankruptcy applications against a Personal Guarantor(s), application for winding up of Issuer)  undertaken by MoolahSense on behalf of them. They will also bear the risk of losing their investment and the cost of the legal actions if the loan recovery is not successful. Notwithstanding, MoolahSense will consult affected investors before commencing legal action that will require them to bear legal costs. MoolahSense will proceed only if the majority of investors whose aggregate investments exceed 50% of the total issue amount of a promissory note have given their approval.

A late payment interest of 30% p.a. (calculated on a daily rest basis) on the arrears will be payable by the issuer to the investors. This will start to accrue 1 day after the repayment due date.

 

Yes. On the investors dashboard, we use a colour coding system (that comes with a detailed written explanation) to inform investors whether an issuer is prompt or late in its repayment. In addition, investors will be able to view the detailed repayment schedule of each issuer they had invested in on their dashboard.

Yes. On the investors dashboard, we use a colour coding system (that comes with a detailed written explanation) to inform investors whether an issuer is prompt or late in its repayment. In addition, investors will be able to view the detailed repayment schedule of each issuer they had invested in on their dashboard.

You are only able to view the late repayment updates for issuers whom are late in their repayments and if you had invested in their promissory note. 

To get the information, simply follow the steps below :

1. Logon to your dashboard

2. On the left hand side of your dashboard, click on the 'Investments' icon

3. Look for the name of the Issuer and click on the '+' icon found under the 'Details' column

4. Look under the Remarks column for the late repayment updates (see graphic below)

 

 Late Repayment Update

 

 

Investor Funds

All members' monies are held in separate account with OCBC. Save for the minimum balance funded by MoolahSense to avoid unnecessary bank charges, at no time will the funds of MoolahSense co-mingle with members' monies.

Members' monies are not used in any of our business operations. There will be a half-yearly certification performed by an appointed auditor that the members' monies and MoolahSense's funds are kept separated and do not contain discrepancies.

You can use online banking (preferably FAST transfer or bank transfer) to fund your account. Cash and cheque payments are not accepted. A minimum funding of S$500 is required to make an offer.

 

Bank Transfer Details - Beneficiary (pay to):

Beneficiary's Name         : MoolahSense Private Limited

Beneficiary's A/C              : 686249095001

Bank Name                        : OCBC Bank

Account Type                    : OCBC Current

Bank Code                          : 7339

Branch Code                      : 686

 

Investor Fund Transfer Services
In order not to miss out on funding campaigns, kindly ensure that your MoolahSense account is funded before the cut-off time to participate. 

 

  1.  The cut-off time for 'fund transfer in' is until 11.59pm (midnight) and shall be processed/credited by MoolahSense by 11.00am on the next business day. 
  2.  All fund transfer requests on a weekend (Saturday/Sunday) or Public Holiday shall be processed on the next business day.

 

Important: All members' funds are held in a segregated bank account of MoolahSense. The monies placed in MoolahSense Account are not, and shall not be, deposits as defined under the Banking Act (Cap 19) of Singapore.

You can withdraw idle funds from the MoolahSense Dashboard under the tab 'Fund Transfer Out'. The money will be transferred to your bank account maintained in our records.

 

  1. The cut-off time for 'fund transfer out’ is until 4.59pm and shall be processed/credited by MoolahSense by 6.00pm on the next business day.
  2. All fund transfer requests on a weekend (Saturday/Sunday) or Public Holiday shall be processed on the next business day.

No. As MoolahSense is not a deposit-taking institution, the funds are held in a non-interest bearing bank account.

Yes. You can view and download four types of reports from your dashboard's "Reports" Section. They are:

eStatement - gives you an overview of your account including Accepted Offers and Earmarked Amounts within the selected timeframe.
Interest Earned Report - features your earned interest and late interest for your records.
Repayment report - comprises an itemised listing of all repayments made within the selected period.
Transactions Report - shows all transactions made within your account.

For more information on these reports, please read the blog here.

Registration & Privacy

MoolahSense provides businesses with the opportunity to get working capital through the following:

 

Business Loans 

There are two types of business loans, secured and unsecured. All secured business loans are secured against a collateral. As a mandatory requirement, the financial value of the pledged collateral must be greater than the total loan amount that the business wishes to obtain. 

For unsecured business loans, it is not pledged against any physical collateral. While not technically a collateral, directors of the Business are required to provide personal guarantees on their loan.

Invoice Financing

A business can get access to timely working capital by submitting a tax invoice to provide an indication that the SME is likely to receive an inflow of cash (i.e. the payment from the SME’s customer) on the payment date of the invoice, which will in turn provide cash for the SME to repay a loan.  SMEs can raise up to 80% of the invoice value. The principal and interest will be repaid to investors on the maturity date of the invoice financing period.

For secured and unsecured Business Loans, the loan tenor ranges from 3 to 24 months. For Invoice Financing, the loan tenor is between 15 to 90 days. 

 

Yes, prospective issuers must register with the business name as recorded with ACRA. On listing, the registered business name will be used.

For unsecured Business Loans, the following criteria applies:

 

a) a Singapore-registered Private Limited and Limited Liability Partnership entity

b) have at least 1 year of accounts filed with ACRA or have been trading for 2 years

c) have a minimum annual turnover of S$300,000

 

For Invoice Financing, the following criteria applies:

 

a) a Singapore-registered Private Limited and Limited Liability Partnership entity.

b) have a total annual revenue of S$100,000 with a minimum of 12 months operating history.

c) have tax invoices with fixed payment terms of 15 – 90 days from customers

d) the face amount of the tax invoice must be at least S$20,000 and above

For unsecured Business Loans, the following documents are required:

 

a) Certified true copy of the latest ACRA Bizfile Business Profile Report

b) Certified true copy of the Limited Liability Partnership Agreement/Memorandum & Articles of Association (M&A)

c) Proof of Identity of Directors/Partners/Managing Partner

d) Proof of residential address of all the authorized Directors/Partners/Managing Partner in the Resolution

e) Proof of local trading address, dated within the last six months

f) A corporate bank account with a local bank or Foreign Qualifying Full Bank in Singapore with at least 6 months of bank statements

g) Latest Financial Statement (Preferably 2 years of audited statements)

 

For invoice financing, the following documents are required:

 

a) Bank statements for past 6 months

b) Tax Invoices

c) Latest NRIC / Notice of Assessment / Credit Bureau Singapore  report of guarantor

All information submitted to MoolahSense are kept private and confidential. Actual specific financials will not be published (See item on 'What information are presented to investors?' below).

Subject to our credit assessment, your application will be approved after we have received and verified all required documents. The verification process will take no more than 5 working days.

 

For Business Loan applications, a face-to-face meeting will be conducted.

Business Loans

 

Each note listing shall contain the following information:-

1.    Registered business name and address

2.    Entity Type (e.g. private limited, limited company or limited liability partnership)

3.    Requested note amount

4.    Target interest rate

5.    Purpose of the short-term note

6.    Personal guarantee

7.    Credit rating from DP Information Group

8.    Media files (e.g. videos, photos, etc. if any)

9.    Financial data, including but not limited to, profit and loss, cash flow and financial ratios for the last 2 financial years (Exact financials are not provided, instead investors will be presented with ranges and relative ratios to provide indication of the business financial standing).

 

On the platform, Issuers are requested to input a summary of the following attributes:

1.    Business awards

2.    Accreditation or industry certification

3.    Member of trade associations

4.    Community initiatives

5.    Social media footprint

6.    Bio-data of directors/partners

 

Invoice Financing

 

Each note listing shall contain the following information:-

1.    Registered business name and address

2.    Entity Type (e.g. private limited, limited company or limited liability partnership)

3.    Requested note amount

4.    Target interest rate

5.    Personal guarantee

6.    Credit rating from DP Information Group

7.    Financial data, including but not limited to, profit and loss, cash flow and financial ratios for the last 2 financial years (Exact financials are not provided, instead investors will be presented with ranges and relative ratios to provide indication of the business financial standing).

 

On the platform, Issuers are requested to input a summary of the following attributes:

1.    Business awards

2.    Accreditation or industry certification

3.    Member of trade associations

4.    Community initiatives

5.    Social media footprint

 

6.    Bio-data of directors/partners

Yes. At least one personal guarantee is compulsory.

Note Request

If you wish to request for a business loan, the minimum amount is S$50,000 (with an incremental amount of S$1,000). The amount of loan that will be granted to issuers will depend on the result of the credit assessment carried out by MoolahSense. 

If you wish to request for an invoice financing loan, the minimum amount is S$15,000 per tax invoice.  The amount of advance granted will typically range between 50-80% on the face amount of the tax invoice.     

Moolah Sense

The business needs presented above are intended for illustration purposes and may not be exhaustive.

The target rate (% p.a.) is the maximum interest rate that you are willing to pay to investors for the short-term note. The total cost of your note is the sum of the interests you pay to investors and MoolahSense fees.

Once the draft of the listing is reviewed by MoolahSense, a prospective Business has up to 14 days to publish the request. A published listing will be kept open for up to 30 days or until early acceptance by the business subject to conditions. 

MoolahSense will review a listing within 5 working days and if all is in order, the approved draft will be posted on the Dashboard. An email will be sent when a draft is approved.

Yes, you may issue more than one note through MoolahSense. However, you will need to demonstrate a good track record on prompt repayments of your existing note(s) before you can apply for another listing. You will be required to submit a new request for review.

Yes, you may obtain financing for more than one invoice within a single note as long as they are drawn on the same customer and their payment due date are the same. 

There is no such necessity on your part. When the repayment of your note is due, you are just required to ensure that your debtor makes the payment to you so that you can transfer the monies to our account for us to facilitate the repayment to investors. 

Accepting Offers

An eligible offer is an offer that is at or below the associated target rate specified upon listing.

Yes, but at least 70% of the requested amount must be funded by Eligible Offers, subject to a minimum of S$100,000.


For business loans, you may accept the offer if it is at least S$50,000 funded by eligible offers. For tax invoices which has a face value of S$50,000 or more, you may accept the offer if it is at least S$50,000 is funded by eligible offers. For tax invoices which has a face value of less than S$50,000, you may accept the offer if it is at least S$15,000 or 80% is funded by eligible offers.

No. The maximum note amount is the requested amount.

The listing will lapse. You can send us a request to extend the campaign. We retain the final discretion on whether to accede to such request.

When an issuer accepts an offer, a provisional contract is formed between the business and each allocated investor. Both the issuer and investors are bound by the terms of the contract note executed in this manner, having endorsed the platform's terms and conditions.

 

Once the final note has been endorsed by the business, an email confirmation will be despatched to the business and allocated investors. The details will also be updated on each respective account.

MoolahSense charges an application fee and/or a success fee to issuers who wish raise capital on its platform.

An issuer that obtains financing for its invoices through MoolahSense will be required to pay a renewable application fee of SS1,000 per annum. There is currently no application fee levied to issuers who wish to apply for a business loan.

The success fees charged to issuers is between 3-5% of the amount of capital raised and the eventual amount disbursed to issuers will be net of the success fee. For example, an issuer raises S$100,000 through the MoolahSense platform and pays a success fee of 3% of the capital raised (i.e. S$3,000). In this instance, the amount disbursed to the issuer will therefore be S$97,000 (S$100,000 - S$3,000).    

The actual amount (PA) to be received by the issuer will be net of the platform charges.

 

 

To calculate the issuer's effective interest rate (Y), we calculate the periodic interest rate based on the actual amount (PA) received. Theoretically, the formula to solve for the periodic interest rate i/m is below:

Moolah sense

The illustration shown has to be solved by iteration, estimation or using financial calculator. After solving for i/m, the effective interest rate Y of the borrower can be calculated as follows:

Moolah sense

Y: effective interest rate

I: nominal yield rate

M: number of periods of compounding per year

Once you have accepted the offers, we will disburse the funds (net of the success fee) to you within 3 business days.

Repayment

For Business Loans, the commencement of your repayment is dependent on the type of note structure selected prior to listing. The repayment schedule can be found on the contract note and on the Issuer Dashboard.

 

 

For financed invoices, you will have to make the full repayment of the total advanced face value of the invoice and the interest payable to investors 

A reminder will appear on the Dashboard prior to the scheduled repayment due date. You will also receive an email reminder 1 week before due date.

 

 

You can transfer the repayment amount to MoolahSense by internet banking, GIRO or via cheque.

No. You make one payment to MoolahSense before each repayment date and MoolahSense will apportion to investor accounts.

In the event of late repayment, the following fees apply:

 

1.       $200 one-time late payment fee or 1% of arrears, whichever is higher, payable to MoolahSense

 

2.    30% p.a. (calculated on daily rest basis) late payment interest on the arrears will be payable to the investors. This will start to accrue 1 day after the due date.

MoolahSense classifies a loan to be in default if an issuer does not make any repayment for a period of 90 consecutive days or more and / or when the Personal Guarantor(s) of the Promissory Note has been declared a bankrupt.

 

MoolahSense may initiate legal actions (e.g. bankruptcy application against the Personal Guarantor(s), winding up application against the Business) against you and /or your Business to recover the monies owed to affected investors.

 

 

MoolahSense shall also report the event to the credit bureaus which will be detrimental on your Business’s credit standing. Financial indicators on the MoolahSense Dashboard (privately accessible to investors) will be adjusted accordingly as well to reflect the delinquent status of your Business.

Investors have the legal rights to file claims against the issuer based on the agreement.

 
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IMPORTANT MESSAGE: The "MoolahSense" name and logo are trademarks and are properties of MoolahSense Private Limited (Company Registration No. 201323794Z). All other trademarks appearing on this website are the property of their respective owners.

MoolahSense Private Limited is licensed and regulated by the Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS-100568-1).

The funds placed by the Payees and the Issuers in the MoolahSense Account are monies of the Payees and the Issuers respectively, to be applied for purposes directed by the Payees and the Issuers. Monies placed in the MoolahSense Account are not, and shall not be, deposits as defined under the Banking Act (Cap. 19) of Singapore. Neither MoolahSense nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising, for any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication, of the materials posted on this website. MoolahSense does not give investment advice, provide analysis or recommendations regarding any offering posted on the website. The content and material available on the platform are for informational purposes only and should not be regarded as an offer, solicitation, invitation, advice or recommendation to buy or sell investments, securities or any other financial services or banking product. For full list of disclaimers, please refer to section 11 of the Standard T&Cs.