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How do I change or reset my password?

You could refer to the following image for a step by step guide on how to change or reset your password:

 

 

I will like to update my bank account detail, how do I do this?

You may update your newly registered bank account detail by writing to admin@moolahsense.com

In your email, please assist to attach the following documents:
  • your personal identification document number (NRIC-back and front/passport/FIN Card)
  • a snapshot of the bank statement that contains your name and the registered bank account number (existing and new bank account)

 

How does MoolahSense authenticate the invoices pledged for financing?

We will examine and authenticate the background and details of a debtor’s transaction records with the Issuer who intends to finance its invoice with us before the invoice is made available for financing to our investors.

How does MoolahSense assess the credibility of all Personal Guarantors?

When we assess a personal guarantor, we will request for the latter to submit his/her notice of assessment issued by the Inland Revenue Authority of Singapore as well as conduct credit and litigation checks on him/her so as to ensure that he/she is financially sound and not being subject to any external actions that would greatly impact his financial health.

As a business owner, why should I choose MoolahSense to raise capital to grow my business?

As MoolahSense has been accorded a full Capital Market Services (CMS) license by the Monetary Authority of Singapore (MAS) since November 2016, you can be assured that you are dealing with a regulated entity by the government. An entity regulated by MAS is assessed to be competent and capable of meeting the high regulatory standards required by the latter. Also, obtaining a full CMS license allows us to reach out to offer our investment products to a whole range of investors, including retail, high net worth and institutional investors. This will ensure that you will be able to raise capital by tapping into the liquidity from a wide and diverse pool of investors. To date, there are more than 11,000 people registered on the MoolahSense platform.

MoolahSense offers SMEs different lending solutions that cater to their capital and financing needs. SMEs can raise capital through the MoolahSense platform through a variety of means, i.e. by applying for a secured business loan, an unsecured business loan or by getting their invoices financed at a discount.

MoolahSense also offers SMEs a variety of loan repayment solutions that best suits their business and financial situation.  SMEs can choose to either repay their loans in monthly equal instalments, monthly interest repayments, quarterly interest repayments, etc. For businesses who intend to opt for the monthly equal instalments repayment structure, they could also choose to repay their loan over 12, 18 or 24 months.

I am a business owner, how does MoolahSense platform help my company, an SME to expand?

MoolahSense is a crowdlending platform that seeks to provide businesses predominantly Small and Medium Enterprises (SMEs) – with an avenue to raise capital to accelerate the growth of their business. We provide flexible lending solutions to help you achieve this. Through our platform, SMEs are able to apply for unsecured or secured business loans for tenures ranging from 3 to 24 months or have their invoices financed at a discount.

Are my MoolahPoints transferable to someone else?

MoolahPoints earned are not transferable.

Will the remaining unredeemed MoolahPoints be added to the new MoolahPoints that is going to be credited in the next quarter?

Available MoolahPoints will be summed together for all quarters. If Carl has an unredeemed 250 MoolahPoints on 29 Jun’18. His referees have helped him to accumulate a total of 150 MoolahPoints. On 30 Jun’18, Carl’s ‘$ MoolahPoints’ dashboard will display his ‘Available MoolahPoints’ as 400 MoolahPoints.

When can I start redeeming my MoolahPoints?

Information to be updated in the second half of YR2018 as we are working to perfect the redemption program.

Am I allowed to use MoolahPoints to offset against the investor service fee that is payable on my investments on the platform?

Information to be updated in the second half of YR2018 as we are working to perfect the redemption program.

What can I redeem my MoolahPoints for?

Information to be updated in the second half of YR2018 as we are working to perfect the redemption program.

How do I redeem my MoolahPoints?

Information to be updated in the second half of YR2018 as we are working to perfect the portal.

What kind of information is provided on my ‘$ MoolahPoints’ dashboard?

‘$ MoolahPoints’ dashboard will display all the details transactions performed by the referee, including when you earn and/or redeem the MoolahPoints. You can view your total available point balance under the header titled as ‘Available Points’.

When will MP be reflected on referral dashboard?

Every quarter (Mar, Jun, Sep & Dec’17) unless otherwise stated.

How long will it take for MoolahPoints to appear on my ‘$ MoolahPoints’ dashboard?
Refer to the following table for more details:

Where do I find my MoolahPoints?

The MoolahPoints you have earned can be found under “Your Points” in your $ MoolahPoints tab. The following screenshot, for your easy reference:

Is there a limit on the number of referrals that I am eligible to make?

There is no limit to the number of referrals you can make.

How do I refer a friend?

There are two ways to make a referral. First, login to your account and look for ‘$ MoolahPoints’ on the left-hand side menu in green.  To refer your friend, do one of the following:

  1. Have your friend enter your referral code when they sign up.

       or

  1. Send your friends an email with the sign up link. To do so, simply enter your friend’s email address under into the highlighted field below and hit “Send”. You can send invites to multiple friends at the same time. The following screenshot is for your easy reference:

How do I earn MoolahPoints?

Currently, each successful referral will give you bonus MoolahPoints. A successful referral is when your referred friend (‘Referee’) becomes an eligible investor and/or invested in a campaign on our platform.

Is there a validity period for all MoolahPoints earned?

MoolahPoints will not expire once it is credited to your account.

Is there any limit to the MoolahPoints that I can earned?

There is no limit to the number of points you can earn.

How will MoolahSense inform me once my earned MoolahPoints is being credited into my account?

There will not be any notification being sent to you as the information can be view ‘live’ on the ‘$ MoolahPoints’ dashboard.

Are there any fees payable to MoolahSense for participating in the MoolahPoints scheme?

MoolahPoints is absolutely free! No fee is involved and you can earn the bonus points by referring as many friends as you want.

Will my participation in the MoolahPoints scheme affect my existing and future investments on the platform?

MoolahPoints is a referral system and will not affect your investments.

I have not invested before, can I still refer a friend or earn MoolahPoints?

Yes, you can! Even if you have not invested before, you can still refer your friends. You will earn points when they sign up and qualify.

How do I enroll myself in the MoolahPoints reward program?

Log into your account and look for ‘$ MoolahPoints’ on the left hand side menu in green. A new message will appear on your screen as shown below. Check the box next to ‘Agree with the MoolahPoints T&C and click the ‘Generate one-time referral code’ button.

Once you clicked the ‘Generate one time referral code’, the following screen will appear and you are well on your way to earning your MoolahPoints:

What is the benefit of MoolahPoints?

MoolahPoints (MP) lets you earn Points in multiple ways and pool them into a single account, so you can begin redeeming for rewards later. The rewards will be advised at a later point once the redemption portal is up on the second quarter of 2018.

What is MoolahPoints?

MoolahPoints is a reward program that lets you earn Points in multiple ways. You, as an eligible investor (the ‘Referrer’) can earn MoolahPoints when your referred friend (the ‘Referee’) successfully registered as an investor, and/or when they invested in a campaign on MoolahSense platform. The Points will be combined in a single member account so that you can get the rewards you want faster.

When will the SME who has defaulted on their repayment obligation be brought to court?

We will only consider taking the SME to court if our attempts to engage the SME verbally or in writing (which includes the serving of legal documents) for repayments to be made had failed. Nevertheless, as there are fees payable to the court if we initiate legal action against any SME, we will have to also weigh the cost to be incurred for such actions against the probability of recovery.

For legal actions which involve the filing of a bankruptcy application against the Personal Guarantors of a promissory note and/or winding up application against the SME, we also require the approval from the majority of affected Investors as they would have to bear the costs.

Will MoolahSense allow SMEs who have previously defaulted on their loans to raise capital again through your platform?

No. Only SMEs which have been prompt in their repayments will be allowed to raise capital on the platform again.

Is it possible that I have the list of defaulted SMEs?

As the list of defaulted SMEs are confidential, we are unable to review it. Only Investors who have invested in the campaign by an SMEs who has defaulted their repayment will be made known to it.

In the event that the SMEs that I had invested in does not honour its loan repayment obligation, should I initiate the debt recovery effort?

We advise you to allow MoolahSense to recover the monies on your behalf.

MoolahSense will represent Investors to recover the monies owed by SMEs who have defaulted their repayments.  Among other things, MoolahSense will make telephone calls and send letters of demand to the SMEs and their management.  This saves the Investors time and effort from having to make such calls and send such letters on their own.

In addition, if any monetary costs are required to be paid by Investors for any debt collection actions (such as for the appointment of lawyers to commence formal legal proceedings), MoolahSense will coordinate the collective payment of such costs among the Investors, and such costs can then be split between affected investors.  This will help the investors to save on monetary costs compared with an investor taking legal action on his or her own, in which case the investor will have to bear the entire legal costs himself.

Who will be responsible for the debt recovery efforts in the event that the SMEs does not honour its loan repayment obligation?

MoolahSense will undertake the responsibility of debt recovery from SMEs on behalf of Investors who are late or who have defaulted on their loan repayments. This includes taking the necessary legal actions to facilitate the debt recovery process. Notwithstanding, for SMEs who persistently fail to meet their loan repayment obligations, we may consider engaging a third party debt collector to recover outstanding monies due to Investors.

Why there are no repayment monies being credited to my MoolahSense account on the scheduled repayment date?

Monies due to investors will be credited to your MoolahSense account 3 to 4 business days after the scheduled payment date by the SME. This is to allow us to process the payment made by the SME and crediting it into your MoolahSense account.

The interest rate offered by a SME for High Interest Payout (HIPO) loan seem to be very high. Is it worth the risk?

While High Interest Payout (HIPO) loans are deemed as a high-risk investment, there are risk mitigating factors that make such loans a viable investment option. Such factors include the existence of a personal guarantee to the loan, its relatively short tenor of 6 months and the existence of at least an operating track record of at least 2 years.

How does MoolahSense mitigate the risks on the possibility that the SMEs may default their repayment?

At MoolahSense, we have put in place a stringent credit assessment process where we conduct checks on the identity of potential issuers (i.e. businesses) and personal guarantors as well as a comprehensive financial and business profile analysis of potential SMEs so as to ascertain that they have the financial ability to repay the loan principal and interest to Investors. To ensure that the information provided by SMEs are accurate, we verify its authenticity through third party data providers. In addition, to safeguard the interest of Investors, we ensure that the loan is backed by at least one personal guarantor.

I am using foreign mobile numbers, can I still set up the Two-Factor Authentication?

Yes, our Two-Factor Authentication system set up is able to send One-Time Passwords to foreign mobile numbers.

Is the setting up of the Two-Factor Authentication a one-time requirement?

Yes, you are only required to set up the Two-Factor Authentication once.

Whilst trying to obtain and input my One-Time Password, I have been logged out. Could you assist me?

To resolve this, please write to admin@moolahsense.com. In your email, please indicate:

  1. subject header “One-Time Password Issue”
  2. In the content please provide your full name and NRIC/passport/FIN card number
  3. Indicate the issue you face with regards to the One-Time Password issue

Please allow us up to 3 business days to respond to you. Once we have resolved the issue, we will notify you via email.

Will all Investors on MoolahSense’s platform be required to set up the Two-Factor Authentication?

Yes, all Investors are required to set up the Two-Factor Authentication to assess their account.

How does the Two-Factor Authentication work?

The Two-Factor Authentication contains a security feature that requires you to enter a One-Time Password (“OTP”) as well as your User ID and Password every time you login to your MoolahSense account. The OTP is sent to your mobile phone number which you had registered with us.

How does “First-Come-First-Served” work?

The following illustrates how “First-Come-First-Served” work:

How does an “Auction” work?

The following illustrates how an “Auction” work:

Why does my investment indicate it as “Pending” status on my MoolahSense’s dashboard?

Your investment indicate it as “Pending” status because that investment campaign has yet to be accepted or issued by the Issuer (SME).

I notice that there is a green dot that appears beside the name of each Issuer (SME). What does this dot represent?

The green dot that appears beside the name of each Issuer (SME) indicates that the Issuer (SME) has no late repayment record or its late repayment (i.e. for repeated issuers) has been remedied. MoolahSense will only launch a campaign for an Issuer if it satisfies these criteria.

Where and when will the investment(s) that I have made will be reflected on my MoolahSense’s dashboard?

The investment(s) that you have made will be reflected in the “Total Invested Amount” on your MoolahSense’s dashboard once the “Promissory Note” (the loan) that you had invested in had been accepted and issued by the “Issuer” (the SME).

What is the maximum amount that I can invest in any campaign?

The maximum amount that you can invest at any time after the launch of any campaign is limited by the remaining funding amount required in order for the campaign to be fully funded. For example, if an SMEs wishes to raise S$100,000 from a campaign and it is 80% (i.e. $80,000) funded at the time you intend to invest, then the maximum amount you may invest in this campaign will be limited to S$20,000 ($100,000-$80,000).

Will I as an Investor be able to sell the investment(s) that I’ve made on the platform to other MoolahSense’s Investor(s)?

Unfortunately, we do not have a secondary market for Investors to sell their investments. As such, as an Investor, you should be prepared to hold your investment(s) until maturity.

Will I be able to get the detail of past campaign(s) that have been closed?

You will only have access to the detail of past campaign(s) if you had successfully invested in it. You may view this in the ‘My Campaigns’ section of your dashboard.

How do I know if there’s a new campaign that are launched on your platform?

We encourage our Investors to login to their dashboard regularly to find out the campaigns that are available on our platform. 

Does MoolahSense provide a credit rating for all SMEs who are raising capital on your platform?

We currently obtain a DP Credit Rating from DP Information Group, an established credit bureau in Singapore, to assess the default probabilities of companies in Singapore.

For a detailed breakdown of the different DP Credit Ratings, please refer here: http://www.smecreditrating.sg/

As an Investor, why should I consider investing my monies on your platform?

As MoolahSense has been accorded a full Capital Market Services (CMS) license by the Monetary Authority of Singapore (MAS) since November 2016, you can be assured that you are dealing with a regulated entity by the government. An entity regulated by MAS is assessed to be competent and capable of meeting the high regulatory standards required by the latter.

As an investor, you are able to invest in any investment campaign on the MoolahSense platform from as little as S$100. This allows you to diversify your investment monies across many different campaigns. As we have a diverse base of issuers, we are able to offer our investors the opportunity to diversify their investment portfolio by investing in businesses that operate in a variety of industries (e.g. wholesale and retail trade, construction, manufacturing, information and communications, etc.). 

At MoolahSense, we believe in revealing the identity and background of our issuers who are raising capital through our platform so that investors could make an informed investment decision. Before our investors invest their monies into any investment campaign, they will be provided with the essential background information on the issuer, which includes its business profile (e.g. business name, date of incorporation, business registration number, paid-up capital, registered address, etc.), the issuer’s purpose of taking the loan, the important financial ratios of the issuer for the past two years, etc.

Investing in the MoolahSense platform is less costly as compared to investing in other similar crowdlending platforms. We charge a competitive investor service fee that is pegged to 1% of all repayment received as compared to the latter whom typically charges a fee that is equivalent to 15% of interest earned by their investors. With lower investment costs, you can potentially earn higher investment returns on our platform.

What are the opportunities am looking at to grow my wealth as an Investor through MoolahSense’s platform?

MoolahSense’s platform connects SMEs and Investor like yourself to help the SMEs to grow their businesses. Meanwhile, you as an Investor, you have the opportunity to invest in them and earn an effective interest rate of 6% to 24% per annum. 

How do I close my MoolahSense account in the event if I wish for it?

Oh dear, we will definitely wish for you to reconsider this action.

Nevertheless, should you still wish to proceed with it, do write to admin@moolahsense.com. In the email, please indicate the following:

1) subject header “Request to close my MoolahSense account”

2) The content to indicate your full name and

3) NRIC/passport/FIN card number

Please allow us up to 3 business days to process it. Once we have completed the process, an email notification will be sent to you indicating that the account has been closed.

As an Investor, am I empower to change my personal particulars as reflected on my MoolahSense dashboard?

As we are regulated by MAS, we need to ensure the information provided by our Investor are accurate and up to date. In this instance, any changes include but not limited to the following should be informed to our team by writing to admin@moolahsense.com:

  • your personal identification document number
  • nationality
  • address and/or
  • registered bank account number

How do I withdraw monies from my MoolahSense account even though I did not complete the “Investor Profile Registration Form”?

We strongly encourage you to complete the “Investor Profile Registration Form” as this is in compliance with the requirement from MAS.

However, should you still wish to withdraw the monies without completing the “Investor Profile Registration Form”, you may write to admin@moolahsense.com. In your email please indicate the following:

a) your full name

b) NRIC/Passport/FIN card no.

c) stating that you wish MoolahSense to suspend your account.

Once we have received the above information and processed it, we will notify you via email that your account has been suspended.

When your account is in suspended status, you may login to your dashboard and withdraw your monies but you will not be able to view or invest in any of the current and upcoming campaigns.

Is there an alternative way to transfer my monies to MoolahSense account as my bank’s token are not working?

You may transfer monies from another bank account and drop us an email to admin@moolahsense.com to inform us of this arrangement. In your email please include your:

a) full name

b) attach a screenshot of the transaction showing the bank account number and the amount that has been transferred.

 

How long will it take to credit the monies that I have transferred into my MoolahSense account?

On a work week, we required at least one business day to process and credit the monies to your MoolahSense account. Meanwhile, on a non-work week (Friday to Sunday) or Public Holiday, we will require a minimum of three working days to process it.

Is there a minimum monies that is required to be transferred into my MoolahSense account?

You may transfer any amount of monies to your MoolahSense account but please note that the minimum investment per campaign is S$100.  We will require a maximum of 3 business days to credit the monies into your MoolahSense account. 

Am I required to transfer any monies to my account after my application as an Investor has been approved?

You will only be required to do so when you wish to make an investment on our platform.

What else do I need to do after I have completed my “Investor Profile Registration Form”?

Once you have completed the “Investor Profile Registration Form”, you will be receiving an email from us. The email will notify you to upload the following document to your MoolahSense investor dashboard:

  • A softcopy of your bank statement which shows your full name, the bank name and bank account number that you’ve provided us when you sign up for a MoolahSense Investor Account OR
  • A screenshot of a successful online fund transfer to MoolahSense (any amount) from same bank account number that you’ve provided us when you sign up for a MoolahSense Investor Account. Please assist to ensure that you key-in your full name and NRIC/FIN/Passport no. in the Comment/Remark/Message field. This way, our system will be able to match your fund transfer to your MoolahSense account. An example of it as shown here:

Once you have uploaded the document and we have verified your bank account, an email notification will be sent to you. The email will read “Congratulations! Welcome to the MoolahSense Investor Community”.

Why do MoolahSense need to verify your bank account? MoolahSense Private Limited is licensed and regulated by the Monetary Authority of Singapore (MAS) and holds a Capital Markets Services Licence (CMS-100568-1). In compliance with MAS regulation, we will need to verify that you have a valid Singapore bank account.

 

How long does MoolahSense take to process my registration as a qualified Investor?

We will take up to three business days and will notify you of the outcome of your registration through your registered email with us.

I have forgotten the answer to the security question to reset my password, how do I proceed from here?

We will be able to assist you with this, simply drop us an email to admin@moolahsense.com and attach an image of your NRIC/Passport/FIN Card/Student card number (front and back) to us. Once we have resolved the issue, we will be contacting you. Please note that we may take up to a maximum of fourty eight hours on a work week to resolve this. 

I have problem with setting up my password to register as an Investor, how do I resolve this?

To set up your password, please ensure that it contains the following:

  • One simple case letter
  • One capital case letter
  • One number
  • One special character
  • More than 7 characters (Minimum 8 characters)

For instance: Iluvye@r2018

How do I upload my registered bank detail if my account is a passbook saving account?

The Investor who had registered a passbook savings account on our platform, they could upload a screenshot of their passbook which shows their full name and bank account number.

I am unable to upload any of the required documents whilst trying to complete the “Investor Profile Registration Form”, how do I resolve this?

We will encourage you to verify if the document(s) that you had uploaded is an accepted file format (i.e.  jpeg, jpg, pdf, png, gif) on our platform and if the size of your file had exceeded our file size limit of 10MB.

If you still encounter problems uploading your documents, please email your documents in one of the abovesaid formats to admin@moolahsense.com and we will be contacting you soon to help you resolve the issue.

I am unable to click on the “Submit” button when completing my “Investor Profile Registration Form”, how to resolve this?

This could be due to incomplete entry into a certain field(s). Hence, please do counter check if there are any field(s) that are highlighted by our system which requires you to complete or refill as this may be the cause of why you are unable to successfully click on the “Submit” button to submit your form online.

I am a foreigner and not residing in Singapore. Am I still eligible to register as an Investor on MoolahSense’s platform?

You will be able to register as an investor as long as you are at least 18 years of age and have a bank account with a Singapore (local) bank or a full qualifying bank in Singapore, which refers to any foreign full bank in Singapore which is accorded qualifying full bank privileges.

Does MoolahSense allow those who are interested in signing up as an Investor to open a demo account first?

We do not provide a demo account. Those who are keen to sign up as investors on our platform can do so on our website: www.moolahsense.com To facilitate the registration process, we have prepared a detailed, step-by-step registration guide to assist all who are keen to register themselves as an investor on our platform. You can view our registration guide online HERE.

Are the interest returns that I earn from my investments on the MoolahSense platform taxable?

We are not able to provide tax advice.  Please consult an accountant, lawyer or other professional advisers if you require advice regarding your taxes.

You may also wish to view the Inland Revenue Authority of Singapore’s web-page on the taxation of interest at the following links:

(a)   For Singaporeans:

– https://www.iras.gov.sg/IRASHome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable-What-is-Not/Interest/

(b)   For foreigners:

– https://www.iras.gov.sg/IRASHome/Individuals/Foreigners/Working-out-your-taxes/What-is-Taxable–What-is-Not/

For taxation purposes, is the return on my investments considered to be interest earned?

The monies which you invest in our platform are loans to Issuers (which are businesses) and are therefore can be classified as “loans to companies”. The returns which you receive from your investments are interests from the loans.

Please consult an accountant, lawyer or professional adviser if you require advice regarding your particular tax circumstances or obligations.

Who is eligible to be an investor?

To be an investor, you have to meet the following criteria:

  1. 18 years old and above
  2. 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 start registering as an investor by clicking HERE. For a step by step guide on how to complete the investor registration process, you may refer HERE 

What is MoolahSense’s loan default rate?

The default rate is computed taking the amount of outstanding loan repayment monies in default divided by the total amount of loans disbursed since our first campaign that was launched in November 2014. At MoolahSense, a loan will be classified as a default if an issuer fails to repay its loan obligations 120 days after the initial loan repayment due date. Currently, the default rate is less than four percent.

What is MoolahSense’s track record?

MoolahSense is the pioneer crowdlending platform established in Singapore and is the first of such platforms to obtain a full Capital Market Services license from the Monetary Authority of Singapore. We have a proven track record of raising capital. In the first three years of our operation, we have successfully raised more than S$40 million over 350 campaigns on our platform.

How does the Investor Service Fee charged by MoolahSense compare with other crowdlending platforms in Singapore?

MoolahSense’s Investor Service Fee of a 1% of repayments is lower compared to the 15% of interest typically charged by other crowdlending platforms in Singapore.

The table below shows the amount of fees charged by our platform compared to other crowdlending platforms.

The reason why MoolahSense charges a fee on repayments instead of interest is because the amount of resources required to administer the collection of payments is not affected by the interest rate.

Will the amount of Investor Service Fee that I have incurred be reflected on my dashboard?

Yes. The Investor Service Fee will be displayed in the ‘Your Investments’ section (see below image).

To assess the ‘Your Investments’ section, login to the platform and click on the ‘Your Investments’ icon found on the left-hand side of the dashboard.

Will the Investor Service Fee apply to the investments that are made through MoolahSense’s Auto Allocation service?

Yes. The Investor Service Fee will also apply to investments made through Auto Allocation service for campaigns that are launched on and after 11 December 2017.

Will MoolahSense still charge the Investor Service Fee if there are no repayments made by the Issuer (SME)?

The Investor Service Fee is only charged when there is a repayment made by an Issuer (SME) on their business loans to their Investors.

Do Investors have a choice to opt out of the Investor Service Fee?

Investors will not be able to opt out of the Investor Service Fee as long as they have successfully invested in a campaign launched on and after 11 December 2017.

Will the Investor Service Fee apply to the investments that an investor had successfully made before MoolahSense implemented the fee?

No. The Investor Service Fee will only apply to business loan investments successfully made by Investors on and after 11 December 2017 on the platform.

Will the Investor Service Fee be applicable to all of MoolahSense investment products?

No. The 1% Investor Service Fee will only be applicable to the business loan products.

How does the Investor Service Fee work?

Take for instance an Investor who had invested in an unsecured business loan investment campaign and the Issuer (SME) has a repayment of S$1,000. The net amount of repayment that the Investor will receive in this case will be S$990 after accounting for an Investor Service Fee of S$10 (i.e. 1% of S$1,000).

The computation can be broken down as follows:

Total repayment amount made by issuer:                     S$1,000

Total Investor Service Fee payable:                                S$10 (S$1,000 x 1%)

Net repayment amount received by investor:              S$990 (S$1,000-S$10)

The Investor Service Fee will only be charged when a repayment is made by the Issuer (SME), and will not be charged upfront at the time that the Investor makes the investment. 

How much is the Investor Service Fee?

The Investor Service Fee will be a flat charge of 1% on all repayments that the Investor receives from their investments on the platform.

Why did MoolahSense introduce the Investor Service Fee?

The purpose of introducing the Investor Service Fee is to ensure the continued provision of our services in collecting and recovering payments from issuers. Such services require considerable effort to perform and dedicated resources to be effective. Therefore, the introduction of the Investor Service Fee helps ensure that Investors will continue to benefit from these services.

Does MoolahSense charge a fee to Investors who invest on the platform?

Yes, Investors who have made investments on our platform will be charged an Investor Service Fee.

The Investor Service Fee is a payment made by Investors for the collection and recovery of their investments made on our platform. 

How did MoolahSense determine the investment frequency for its subscriber who subscribed to the Auto Allocation service?

The frequency of investment for each subscriber who subscribed to the Auto Allocation service is based on the information submitted through the digital Auto Allocation subscription form under the ‘investment frequency options’ field.

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 the 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.

When will MoolahSense allocate an investment fund of an Auto Allocation service subscribers for each new campaign?

The investment fund will be allocated one day prior to the campaign launch date for our Auto Allocation service subscribers.

If you are a new subscriber to the Auto Allocation service, your investment fund will only be allocated the next business day. We required one business day to process your subscription.

For instance, if you signed up for the Auto Allocation service today and there is a new campaign that meets all criteria that you have set for in Auto Allocation service that will be launched tomorrow, in this instance, you will not be eligible for this campaign because your Auto Allocation service will only be activated the following day, the same day where the new campaign will be launched.

Let’s put it into another perspective, if your signed up for the Auto Allocation service yesterday, and similarly there is a new campaign that meets all criteria that you have set for in Auto Allocation service that will be launched tomorrow, in this instance, you are eligible for this campaign because your Auto Allocation service has been activated by today.

How does MoolahSense prioritise the allocation of investment funds amongst all Auto Allocation services subscribers and investors who choose to invest directly?

All Auto-Allocations are made based on a First-Come-First-Served basis. The order of priority 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

Am I allow to cancel my investment when an Auto Allocation service invested my fund into a specific campaign?

Once an offer is made via Auto Allocation 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.

Can I specify other investment preferences other than the ones that you have included for the Auto Allocation service?

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

If I utilise the Auto Allocation service, how much monies can I invest in each campaign?

The minimum investment per campaign is S$100. Subsequent increments can be made in multiples of S$100.

Are there any processing fees imposed on Auto Allocation service?

Currently, the Auto Allocation 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.

Is it compulsory for me to subscribe to the Auto Allocation services offered by MoolahSense?

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

How does an Investor sign up for any of the Auto Allocation services?

Subscribing and setting up your Auto Allocation, refer to the following:

What are the benefits of Auto Allocation?

The main benefits of Auto Allocation are 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.

What is Auto Allocation?

Auto Allocation 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 Auto Allocation contract ID number which is allocated on a First-Come-First-Served basis.

An investor can set investment preferences based on the following criteria:

– 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 (subjected to the funds being available in your MoolahSense’s account) to the matching campaign one day prior the launch of the campaign date.

What is the contractual agreement between Investors and the Issuer (SME)?

When the Issuer (SME) accepts the offers, a provisional contract is formed between the Issuers 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 sent to the Issuer and allocated Investors. The details will also be updated on each respective account.

What kind of returns can I expect and how are the investment return rates being determined?

For secured, unsecured business loans and invoice financing, you can expect a target interest rate between 8% to 24% 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.

Can I make multiple offers?

Yes, you can make multiple offers to the same or different prospective Issuers (SMEs) ‘LIVE’ campaigns as long as you have sufficient funds in your MoolahSense account. Investors can spread their risks by diversifying your investment across different businesses. View full disclaimer HERE.

Will I be able to withdraw an investment campaign after I have submitted my offered?

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 (i.e. in an auction campaign which is over-subscribed) or when the campaign you had invested in is not accepted by the Issuer (SME) or is being withdrawn. We will refund the monies that you had invested in the campaign if it is not successfully executed.

What is an eligible offer?

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

What happens to my funds after making an offer?

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.

Do I have to fund my account before making an investment (also known as an ‘offer’)?

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

When will I receive the funds after a successful acceptance of offers?

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

What is the effective interest rate?

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:

What is Effective Interest Rate

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

Y: effective interest rate

I: nominal yield rate

M: number of periods of compounding per year

What is the final amount that I will receive?

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

What are the fees payable?

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

  • Invoice Financing: Annual Application fees – $1000; Success fees – 1% per month calculated on a pro-rated basis (minimum $750)
  • Unsecured Loan (non-hipo) : Application fees $500; Success fees 4% p.a. of accepted amount (minimum $4000)
  • Unsecured loan (hipo): Application fees $750; Success fees 4% of loan amount (minimum $3500)

Calculation Example 

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).

 

*These fees are subjected to changes and may differ based on case-by-case basis. Please contact us directly to find out more. 

What is the contractual agreement between Investors and the Business?

When an Issuer (SME) accepts an offer, a provisional contract is formed between the business and each allocated investor. Both the Issuer (SME) 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.

What happens if the acceptance conditions are not met at the end of the listing period?

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.

Can I accept a higher amount if the request is more than 100% funded?

No. The maximum note amount is the requested amount.

What if my business goes bankrupt?

Investors have the legal rights to file claims against the Issuer (SME) based on the agreement.

How do you classified a loan as being defaulted and what is the next course of action taken against me, the Issuer (SME)?

MoolahSense classifies a loan to be in default if an issuer does not make any repayment for a period of ninety 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 to 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.

Will you imposed any fees on me, the Issuer (SME) if the repayment is late?

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

  1. $500 one-time late payment fee or 3% 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 one day after the due date.

Do I, the Issuer (SME) have to make repayment to each individual investor on my own?

No. You make one payment to MoolahSense before each repayment date and MoolahSense will disburse it to the Investor accounts.

For tax invoices that I wish to obtain financing though MoolahSense, am I required to inform my debtor?

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.

Can my business obtain financing for more than one invoice within a single note?

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.

Can my Business issue more than one note through MoolahSense?

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.

How long does it take for a request to get approved?

MoolahSense will review a listing within five 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.

How long do I have before I can published my campaign and the duration that the campaign be listed?

Once the draft of the campaign has been reviewed by MoolahSense, you as the prospective Issuer (SME) has up to fourteen days to publish the campaign. A published campaign will be kept open for up to twenty-one days or until early acceptance by you, the Issuer (SME), subject to conditions.

What are types of note structure?

The Note Structure as shown below:

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

Is personal guarantee from the business owner required?

Yes, at least one personal guarantee is compulsory.

What information will be presented to Investors?

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 (SMEs) 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 (SMEs) 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

How long does it take for my application to be approved?

Subject to our credit assessment, your application will be approved after we have received and verified all required documents. We will respond to you within five business days and an email notification on your account status will be sent to you.

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

Will my business secrets and financials be made public?

All information submitted to MoolahSense are kept private and confidential. Actual specific financials will not be published.

What are the documents required?

For unsecured Business Loans, the following documents are required:

  1. a) Certified true copy of the latest ACRA Bizfile Business Profile Report
  2. b) Certified true copy of the Limited Liability Partnership Agreement/Memorandum & Articles of Association (M&A)
  3. c) Proof of Identity of Directors/Partners/Managing Partner
  4. d) Proof of residential address of all the authorized Directors/Partners/Managing Partner in the Resolution
  5. e) Proof of local trading address, dated within the last six months
  6. f) A corporate bank account with a local bank or Foreign Qualifying Full Bank in Singapore with at least 6 months of bank statements
  7. g) Latest Financial Statement (Preferably 2 years of audited statements)

For invoice financing, the following documents are required:

  1. a) Bank statements for past 6 months
  2. b) Tax Invoices
  3. c) Latest NRIC / Notice of Assessment / Credit Bureau Singapore  report of guarantor

How do I qualify for a loan from your platform?

For unsecured Business Loans, the following criteria applies:

  1. a Singapore-registered Private Limited and Limited Liability Partnership entity
  2. have at least 1 year of accounts filed with ACRA or have been trading for 2 years
  3. have a minimum annual turnover of S$300,000

For Invoice Financing, the following criteria applies:

  1. a Singapore-registered Private Limited and Limited Liability Partnership entity.
  2. have a total annual revenue of S$100,000 with a minimum of 12 months operating history.
  3. have tax invoices with fixed payment terms of 15 – 90 days from customers
  4. the face amount of the tax invoice must be at least S$20,000 and above

Will the Business be listed with its real identity?

Yes, prospective Issuers (SMEs) must register with the business name as recorded with ACRA. On listing, the registered business name will be used.

Where can I find the late repayment updates for Issuers (SMEs) who are late in their repayments?

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

To get the information, simply follow the steps below :

1. Login 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, refer to the image as shown below:

Will I be able to view the repayment status of the promissory notes that I had invested in?

Yes. On the investor’s dashboard, different colour coding were used in the system (that comes with a detailed written explanation) to inform you whether an Issuer (SME) is prompt or late in its repayment. In addition, you will be able to view the detailed of repayment schedule for each Issuer (SME) that you had invested in the same dashboard.

Will I be compensated for an Issuer (SME) who did not fulfill their repayment obligation?

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

Who will bear the cost of the legal action(s) taken against an Issuer (SME)?

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 a legal action that will require them to bear the legal costs. MoolahSense will proceed only if consent were given by the majority of Investors whose aggregate investments exceed 50% of the total issue amount of a promissory note.

How and when will MoolahSense update the late repayment progress of an Issuer (SME) to affected investors?

Investors will receive progress updates on the Investor’s dashboard every Friday.

For chaser of late repayment with Issuers (SMEs), our team will engage with the Issuers (SMEs) and encourage them to get back on track with their outstanding repayments. Through the engagement we forged with the Issuers (SMEs), we are able to provide the progress update and made known to you if the Issuers (SMEs) are able to make the repayments that result in full recovery or an Issuer (SME) 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.

To access the late repayment updates on the Investor’s dashboard, follow these 3 simple steps:

  1. click on the ‘Investments’ icon that found on the left-hand side of your dashboard.
  2. click on the Note ID of the late promissory note.
  3. View the late repayment notification listed under the ‘Remarks’ column (see screenshot below).

Is there a process that MoolahSense put in place to recover the late repayment from an Issuer (SME)?

MoolahSense have put in place a process to manage late repayments from an Issuer (SME). There are three stages to this late repayment process, refer to the following:

Stage 1: If the Issuers (SMEs) 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 Issuers (SMEs) will be recorded on the platform and communicated to all affected Investors.

Stage 2: If the Issuers (SMEs) fails to remedy the missed/late/partial repayment after forty five days, MoolahSense may activate the debt collection services of third-party professional debt collectors to collect the money on the Investors’ behalf. We currently partner with Thomas Carlington & Associates Pte Ltd. Thomas Carlington & Associates was established in 2005 by their CEO, Mr Thomas Choo, who has more than two decades of experience in credit information and debt recovery. Thomas Carlington & Associates is also a founding member of the Credit Collection Association of Singapore, while Mr Thomas Choo is the Vice-President of that Association.

Stage 3: If the missed/late/partially paid repayment remains not remedied after hundred twenty 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 may be invited to vote to obtain a quorum to proceed on the next course of action, which may include authorizing MoolahSense to commence legal proceedings on behalf of the investors (with legal and other fees to be borne by the investors). 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.

Will I be able to view the repayment status that I had invested in?

Yes. On the Investor’s dashboard, you can view the detailed repayment schedule of each issuer that you had invested in.

How will late interest repayments charged to Issuer (SME) be accounted and paid for to investors?

As and when the Issuer (SME) 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.

How and when do I receive my payments?

For Business Loans, Issuers (SMEs) 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:

  1. 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)
  2. 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
  3. 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
  4. 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
  5. Callable – An Issuer (SMEs) has an option to redeem the contractual note early on a quarterly basis. If the note is not redeemed, the Issuer (SMEs) pays interests on a quarterly basis and the principal will be repaid in the quarter that the redemption is early called or on the maturity date

For Invoice Financing, Issuers (SMEs) 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.

Are there any reports that I can view or download for my 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.

Do I earn interest for the cash held with MoolahSense?

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

How can I withdraw my monies?

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.

How do I fund my account?

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$100 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

During the fund transfer process, please key-in your full name and NRIC/FIN/Passport no in the Comment/Remark/Message field. This way, our system will be able to match your fund transfer to your MoolahSense account. An example of it as shown here:

Once you’ve transferred the fund to your MoolahSense account, please attached the successful fund transfer record (refer to image as shown above) and email it to admin@moolahsense.com

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.

Is my money safe?

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.

What happens if MoolahSense goes out of business?

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 to transfer the servicing functions of all outstanding notes to provide continuity in the event that MoolahSense becomes insolvent.

How can I spread or mitigate my investment risks on MoolahSense’s platform?

We strongly encourage our Investors to diversify their investment portfolio across different investment campaigns and also across different SMEs operating in various industries.

We will like to highlight that all forms of investments carry risks, including the risk of losing all of the invested amounts. Such activities may not be suitable for everyone.

What is MoolahSense’s role to both Investors and the Issuer (SME)?

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 a party to the Note.

How much can I invest directly?

The minimum offer is S$100 and in subsequent increments of S$100.

How long will an investment campaign be made available to investors?

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.

Are investments made contractually binding?

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.

Is MoolahSense regulated by the Monetary Authority of Singapore (MAS)?

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.

Am I subjected to the Moneylending Act?

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.

How long will MoolahSense revert to me on the outcome of my submitted “Investor Profile Registration Form”?

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

Are my personal details kept private?

Your personal information are kept with strict confidentiality. For enquiries on Personal Data Protection Act (PDPA), you can contact us 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 (SME) unless required by Singapore law or regulation.

Will I be automatically qualified as an Investor after submitting my “Investor Profile Registration Form” online?

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, terrorist 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, terrorist financing or other blacklisted activities.

I have invested with MoolahSense before the online “Investor Profile Registration Form” was introduced. Am I still required to complete the form?

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.

Are there any other personal documents that I am required to submit to qualify as an investor?

Other than the mandatory documents required, we will not need any additional documents at this point.

You can refer to our step by step investor registration guide to find out more on how to sign up.

Do I need to submit any of my personal documents when completing the “Investor Profile Registration Form”?

In compliance of the requirements of a Capital Market Service license, all Investors registered on our platform are required to submit the following:

  • Documentary proof of your identity (i.e. a photograph or scanned copy of your NRIC or passport)
  • Documentary proof of 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)
  • Bank statement

 

Why did MoolahSense introduce the online “Investor Profile Registration Form”?

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.

Can I still invest directly and subscribe to any of your Auto Allocation services simultaneously?

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

How do I register as an Investor on MoolahSense?

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

What if there is a breach of the Code of Conduct by a member?

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.

Who can access the platform?

Only registered and qualified 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.

Will MoolahSense verify the document that we have submitted?

Where possible, when documentary proofs are submitted, the MoolahSense team verifies the information as an independent third party.

What are contract notes?

Contract notes are issued through the platform where the Investors and Issuer (SME) 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.

Is MoolahSense regulated by the MAS?

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.

How do I make the repayment?

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.

How does MoolahSense assess the risk profile of potential Issuers (SMEs)?

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

Is it compulsory for me to complete the online “Investor Profile Registration Form” to become an investor?

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.

How does MoolahSense’s platform work?

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.

Auction 

First-Come-First-Served 

What is the loan tenor for all your financing products?

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.

What are the types of loans you offer?

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

a) Business Loans

There are two types of business loans, secured and unsecured. All secured business loans are secured by 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.

b) 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.

What is the target interest rate?

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.

What are the note amounts that I can request for and will be able to obtain?

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.

When will my repayment begin?

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

Can I accept the offer before it is fully funded?

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.

What does an eligible offer mean?

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

Are the notes secured against any collateral?

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.

What are the types of investment products you offer?

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 provide 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.

Who can register as an Investor?

You can register as an Investor if you meet the following criteria:

  1. 18 years old or above;
  2. 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 if you meet the following criteria:
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.

What is MoolahSense?

MoolahSense is Singapore’s pioneer and first fully licensed marketplace lending platform by the Monetary Authority of Singapore 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 in different businesses. Embodying the spirit of access, an investor can start investing from S$100. 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.