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.

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