Business Times: “S’pore’s first P2P lending campaign gets big response”
On 17 Dec (Wed), MoolahSense was featured on Business Times. This is after a successful crowd funding campaign which raised $207,000 for Smaths Consulting. This is 207% more than the targeted amount of $100,000 from 44 unique investors. The eventual interest rate of the loan was 9.9%.
Here are some excerpts taken from the article:
“Mr Yong said investing appetite is strong among individuals in Singapore, who are eager to lend money in small increments (MoolahSense’s minimum lending sum is S$1,000) to promising ventures in exchange for fixed returns. And these returns, usually more attractive and superior to those from traditional forms of investments, are what will encourage more investors to come on board, he told BT.”
MoolahSense aims to offer investors with more choices of investment. Currently, bank/fixed deposits may give negative returns after inflation, and other fix income instruments such as corporate bonds are not accessible to most retail investors. Investing in P2P lending becomes a viable option in this case.
“Beyond money, it was mostly the ‘public relations effect’ that motivated Smaths to raise funds through MoolahSense. We’ve received validation on our business model, forged partnerships with our investors, and seen a boost in our brand image,” said Smaths CEO Ian Gan.
On top of the lower interest rates of loans offered by banks, another benefit for businesses is the publicity received from the campaign. Smaths has received a significant boost in their education business after the campaign. MoolahSense aims to propagate awareness of the borrowing company through its crowdsourcing platform.
“While the platform is currently not regulated by the Monetary Authority of Singapore (MAS), Mr Yong said it has obtained written clearance from the relevant authorities (such as MAS and the Ministry of Law) that its debt crowdfunding activities do not infringe existing regulations”
MoolahSense has received many queries on whether its platform is “safe” or “regulated”. While the platform has not been regulated by MAS, it ensures that its operations are not infringing existing law. At the same time, active measures are being taken to ensure proper handling of funding. We invite potential investors to contact us for any of such queries.
In view of the successful campaign, MoolahSense will be waiving the administrative fees for businesses seeking funds and fall under the 9 different industry sectors. More than just a draw, MoolahSense is committed to benefit SMEs and would like to encourage them to subscribe to its financial service.
If interested, please head down to www.moolahsense.com to see how we work and contact us if you wish to be part of an exciting crowdfunding experience!