Frequently Asked Questions


General FAQ

MoolahSense is Singapore’s pioneer and most trusted marketplace lending platform where people invest directly in local businesses for fixed returns, supporting the core of our economy and fostering the entrepreneurial culture of 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. Each business is identity checked and only businesses with at least 1 year of accounts filed with ACRA or have been in trading operations for 2 years

 

Investors then select who they wish to invest in by submitting note subscription offers. Investors can spread their risks by investing across different businesses. Embodying the spirit of access, an investor can start investing from S$1,000. 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.

MoolahSense operates with a 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.

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.

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.

Upon receipt and verification, you will get an email notification on the application status within 2 working days.

Currently, there are no fees charged to individual investors. Although we retain the option to charge a fee in the future, we shall not be doing so without prior notice.

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 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

The minimum offer is S$1,000 and in subsequent increments of S$1,000.

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.

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.

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.

No. Currently all the notes are unsecured and there are no physical collateral. However, while not technically a collateral, the directors, shareholders or partners of the Business are required to provide personal guarantees on the note. Please review each listing in detail.

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.

Risk

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

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 12 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) Repayment 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

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.

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, call or otherwise contact the Issuer. Action taken 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 categorise the issuer’s contract note as "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 may also, on behalf of the Investors, appoint lawyers to pursue legal proceedings against the issuer and / or the personal guarantor(s) for the full recovery of the amounts due under the Promissory Note.  MoolahSense shall also report such default in payment to the credit bureaus which will be detrimental to 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.

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$1,000 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.

Registration & Privacy

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

  1. Only Singapore registered Private Limited and Limited Liability Partnership entities (not an individual or sole-proprietorship)
  2. No existing Winding up/Judicial Management order
  3. Have 1 year of accounts filed with ACRA or have been in trading operations for 2 years
  4. Minimum annual turnover of S$200,000
  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 with at least 6 months of bank statements
  7. Latest Financial Statement (Preferably 2 years of audited statements)

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).

After receipt of all required documents and when found eligible, a face-to-face meeting will be conducted. The verification process will take no more than 3 working days.

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 associationst
  4. Community initiatives
  5. Social media footprint
  6. Bio-data of directors/partners

Yes. At least one personal guarantee is compulsory.

Note Request

As an issuer, you can request a minimum amount of S$ 100,000 with an incremental amount of S$1,000.

 

Under section 272A of the Securities and Futures Act (Cap. 289), offerors may make personal offers of securities, up to $5 million within any 12-month period, without a prospectus (the small offers exemption), subject to conditions.

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 (countdown clock) 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 monthly repayments of your existing note(s) before you can apply for another listing. You will be required to submit a new request for review.

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.

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 the issuer accepts the offers, 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.

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, funds (net of platform fee) will take 3-5 working days to reach your corporate bank account via internet banking or via cheque.

Repayment

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.

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 occurrence of late repayment, both 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.

In the event of a default, MoolahSense shall report the event to the credit bureaus which will be detrimental on the issuer's credit standing. Financial indicators on the MoolahSense Dashboard (privately accessible to investors) will be adjusted accordingly as well.

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

 
Copyright © 2017 MoolahSense.com. All rights reserved

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 licenced and regulated by the Monetary Authority 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.