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SUNDAY TIMES: Getting a business loan in 2 hours

The SundayTimes has published an article on the Life section, 17 January 2016, which tackles on the ‘hot new lending phenomenon’ in Singapore where companies can access capital quickly and investors can potentially get good returns on their money at attractive interest rates.

As quoted from the said publication, “Borrowers can get cash as quickly as within three days, while lenders are looking at interest rates ranging from 9 to 24 per cent.”

Here’s an excerpt of the article where MoolahSense was quoted:

Olive Green, a company which creates eco-friendly packaging, is a P2P success story. In September, the seven-year-old firm needed $110,000 to expand one of its product lines.

Instead of going the traditional route of taking a bank loan, its managing director, Mr Aloysius Cheong, 38, turned to MoolahSense.

Instead of going the traditional route of taking a bank loan, its managing director, Mr Aloysius Cheong, 38, turned to MoolahSense.

 

The site took only three days to vet the company financials for risk of default, approve his application and send out information about the campaign. The campaign went live on Sept 9 and investors could choose to loan as little as $1,000 each. Within 12 days, the loan request was fully funded.

Mr Cheong paid the amount back – plus 17.9 per cent in interest – to his 33 investors over three months.

He says: “Even though I was charged a slightly higher interest rate than what the banks were offering, it still made sense to use a P2P site because it works faster and I was more likely to get the loan processed.”

Happy with the success of his first loan, he put in a request for a second loan of a similar amount last month. By then, investors knew of his company and reputation for timely payments. The second campaign was snapped up by 39 investors in just two hours and 20 minutes.

Mr Lawrence Yong, chief executive of MoolahSense, says: “Sites such as ours allow businesses to tap the social aspect of collaborative finance – which means SMEs can include videos about their business as part of their campaign as well as participate in our networking sessions to meet potential investors face-to- face.”

The result? Besides getting the capital they need, businesses also get a publicity boost, expand their network and create future customers out of current investors. This was the experience of tuition agency Smaths Consulting, which took a $100,000 loan in November2014 on MoolahSense.

The loan was paid over 12 months and its investors received 9.9 per cent in interest.

 

Smaths managing director Ian Gan, 34, says: “I used the money to expand the business and create an app for our students, but also saw an added public relations benefit.”

Smaths managing director Ian Gan, 34, says: “I used the money to expand the business and create an app for our students, but also saw an added public relations benefit.”

 

He added that because he used a P2P platform, many of his investors ended up either sending their children to his tuition agency for classes or recommending his business to other people.

Read the full story from straitstimes.com here.

For enquiries, call 6871 8780 or email info@moolahsense.com today.