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.