3 Must-Knows when Investing With MoolahSense
Businesses of all sizes seek financing solutions at some point of time. This perennial demand has thus far been met by banks and large financial institutes.
With businesses with financing requirements that fall outside the purview for these institutions, it creates a demand for alternatives.
So, as an individual investor, how do you get involved?
Through our digital lending platform, we connect interested investors with businesses that are looking for financing solutions. This is a win-win situation for both as businesses can get the funds they need, and investors can receive a return from these campaigns.
1. KNOW THE GAME
Crowdlending (or otherwise known as Digital lending, P2P Lending, etc) is the practice where individual or institutional investors lend to businesses that requires funding. This is a debt-based model where investors who lent will receive a return on their investment.
In Singapore, the transaction value for crowdlending segment in 2017 amounted to US$84m1. There are several platforms operating in Singapore, including ourselves, and are regulated and licensed by the Monetary Authority of Singapore (MAS).
As the pioneer digital lending platform in Singapore, MoolahSense is proud to be the first to have obtained the Capital Markets Services Licence (CMS-100568-1) in 2016.
Currently, we have facilitated S$41 million loans to business owners over the course of 359 successful campaigns. MoolahSense counts more than 11,000 willing investors on its platform ready to provide funding to borrowers.
There’s 2 main parties involved: The borrowers who are usually businesses and SMEs that requires funding and the investors like yourself who are looking to invest for the returns.
The Borrower (Businesses) apply online at MoolahSense.com, submit their documents for review and are then verified through our credit assessment process. Our credit team assess the potential borrowers based on things like their business nature, the industry they operate in and the strength of their financials, etc. This information then determines the borrower’s credit risk, eligible loan quantum and interest rates. All these data, together with terms of the loans are then presented to potential lenders for consideration through our investor dashboards.
The Lenders (Investors), on the other hand, invests in a campaign which makes the loans to individual borrowers or bundles of borrowers. In return, lenders can expect to make a profit from interest payments. At MoolahSense, you can start as low as $500 per campaign and diversify your investment.
Similarly, investors are also required to sign up at our website and required to submit various documentation before they can start trading. This is done to comply with the requirements of being a holder of a CMS license.
All information that we collect are kept with strict confidentiality.
2. KNOW THE CAMPAIGNS
All you need to do is to log into your dashboard, browse the campaigns available, choose which campaign to invest in and how much, and then invest and earn! It’s a very simple process.
(statistics that are updated as of 13 Nov 2017)
Till date, we have issued a total of S$41,378,500 loans to businesses and successfully completed 359+ campaigns. We are humbled to be trusted by over 11,000 investors who have registered with us.
Financial products today can be broadly classified into 3 categories: the GOOD, the BAD and the UGLY.
- The GOOD.
Products with predictable returns, a short investment tenure and measured risk exposure.
- The BAD.
Products that yield a negative return due of economic phenomenon such as inflation or central bank interest rate decisions. Fixed deposits are known to yield a net negative return after adjusting for inflation. Bond funds in recent times yield variable returns after fees are deducted.
- The UGLY.
Products that are prone to volatile price action with high exposure to risks. Real Estate Investment Trusts (REITs) are known to suffer price fluctuations and are notorious for paying themselves exorbitant fees.
With campaigns that offers up to 24% high returns with tenure less than a year, our platform provides a good investment opportunity for investors who are looking for more options to expand their portfolio.
On our end, we have a proprietary credit assessment model in place that assesses the risk profile of potential borrowers before we put them up on our platform. Information of each company can be viewed within the dashboard and investors can use this information to evaluate the investment before putting in the money.
Only registered members of MoolahSense have access to information and services provided on the platform. Every member registers with mandatory identification proof.
With an abundant of campaigns available at MoolahSense, you will be able to invest in several borrowers with different profiles at a time. Our campaigns are updated daily and consists of borrowers from different industries offering varying rates of returns.
It is always wise to do a bit of research and have some basic knowledge on the industry r company background before putting investing in the campaigns.
3. KNOW TO DIVERSIFY
As an investor, or someone who is interested in investing, you must understand that all forms of investments carry risks, including the risk of losing all the invested amount.
We always encourage investors to spread their risks by investing in multiple campaigns, constantly reviewing their portfolio and strategies.
As we mentioned earlier, with campaigns updated on daily basis, you can easily diversify your investments through our platform. Plus, with a low minimum investment quantum of just S$500 per campaign, you can get started with a relatively small amount and invest within your own budget and pacing.
Finding the right platform to embark on your journey in crowdfunding is tantamount to following the right shepherd. You never want to be found in the wrong herd.
Crowdfunding in Singapore is regulated by the Monetary Authority of Singapore (MAS). To attain a license to operate, platforms are required to meet stringent requirements under the Securities and Futures Act and the Financial Advisers Act.
Where our platform is concerned, we strive in earnest to remain compliant, and constantly improving our system and workflow to ensure a pleasant experience for both businesses and investors.
To get started with MoolahSense, all it takes is 5 minutes to fill in an online application and you can soon get started with Crowdfunding.
Come sign up for an account with us and see what campaigns are available for you.