Funding Societies


Here’s How You Can Manage Your Investments Risks In Peer-To-Peer Lending With Diversification

One of the largest risks in investing in a Peer-to-Peer lending platform like Funding Societies is the risk of a loan defaulting. For business term loans, a default is defined as a loan that has been unpaid for over 90 days. For invoice financing, a default is defined as a loan that has been unpaid for over 60 days.

To manage the default risk, investors should consider diversifying their portfolios.

What is diversification?

In investing, diversification refers to investing in multiple assets to reduce the risk of the portfolio. In the context of Peer-to-Peer investments, diversification refers to investing in multiple loan products.

Don’t put all your eggs in one basketWARREN BUFFETT

Invest in each and every loan

By investing the minimal amount into each and every loan opportunity offered, your risk is reduced. In the case where a loan was to default, the principal amount lost would not impact the entire portfolio heavily.

How Does Diversification Work?

If an investor were to invest $5000 into a single loan at 12% per annum with a tenor of 1 year, he would expect to earn $600 in interest.
Total Interest Earned = 0.12 × $5000 = $600

However, in the unfortunate case that this single loan was to default, his total loss would be $5000, with a rate of return of -100%.
Rate of Return = -$5000 / $5000 = – 100%

If the same investor were to invest $100 into 50 loans each at a 12% per annum with a tenor of 1 year, he would invest a total of $5000 and also expect to earn $600 in interest.
Total Interest Expected = 0.12 × $5000 = $600

Assuming a 2% default rate, (which means that out of the 50 loans, 1 loan defaults) the investor would earn interest on the remaining 49 loans.
Total Interest Earned = 49 × $100 × 0.12 = $588 

The investor loses $100 from the default. The investors return on investment would therefore be:
Return on Investment = $588 – $100 = $488

The rate of return, in this case, would then be:
Rate of Return = $488 / $5000= 9.76%

Higher amount into lower yield and lower amount into higher yield

Depending on the risk appetite of the investor, some investors may prefer to invest more into lower yield loans as they are assessed to be stronger borrowers and smaller amounts into the higher yield loans.

A typical borrower could be charged between 8% – 11% p.a. in simple interest, while the ones assessed to have higher credit risk may pay interest at a higher bracket, between 12% – 16% p.a.

An investor invests $1,000 into 3 loans at average 9% p.a. and $100 into 20 loans at average 14% p.a.
The investor obtains $270 from the lower yield loans and $280 from the higher yield loans for a total portfolio gross return of $550. Assuming a 3% default on principal, your portfolio would still yield $400 in gross returns.

Want To Add Alternative Investments To Your Portfolio? Here Are 5 Kinds You Could Consider

Stocks and bonds are not the only things you may invest in. There is a range of alternative investments available which fits one’s investment profile, risk appetite and investment capital.

Alternative investments refers to any investment which does not fall under the traditional umbrella of stocks, bonds, mutual funds or insurance. Alternative investments may include peer-to-peer loans, private equity, real estate, art and collectibles or forex and more.

The market for alternative investments is increasingly popular – The total global alternative assets under management swelled to almost $6.5 trillion in 2017, up from$6.2 trillion in 2016. And growth is expected to continue, in light of the increasing popularity of retail investments, demand by growing businesses and the development of technology for risk management and portfolio monitoring.

A major selling point for alternative investments is that their returns are not closely correlated to stocks and bonds. This may help investors increase or stabilize portfolio returns while diversifying risks. However, alternative investments come with trade-offs. They tend to be less liquid than stocks and bonds and it may also be difficult to accurately assess the values of each particular investment. Before investing in alternative assets, investors should seek out expert advice and guidance to ensure they fully understand the associated values and risks.

Private equity

Private equity represents an ownership interest in a company. Unlike stocks, private equity investments are not listed on a public stock exchange. Examples of private equity may include angel investors who provide startup capital to companies, venture capitalists who invest in companies that are in their early to mid-growth stages, or buy-out investors who purchase and privatize companies. There is also equity crowdfunding which involves an online offering of a private companies shares. These investors earn returns when the companies thrive, as the value of their ownership interest increases. However, they face risks that the value of their ownership interest may decrease if the business venture fails or does not do as well as expected. In Singapore, brand-name restaurants Crystal Jade and Jumbo are backed by private equity. The investments in these restaurants aid in expanding its franchise beyond Singapore, with Crystal Jade expanding into Greater China and South-East Asia and Jumbo into Shanghai. As private equity requires a relatively large investment for a long term before significant cash flow is produced, this form of Alternative Investments may not be suitable for individual investors who are just starting out.

Real estate

Investors may purchase properties, renovate it and sell it for a profit. Investors may also choose to purchase properties and rent it out to a tenant to earn income each month. While real estate investments can potentially be a profitable investment strategy, buying a property may pose a great financial hurdle for some. Furthermore, depending on the conditions of the property market, land prices may be raised or lowered. This may affect the amount of profits one can earn. To illustrate, if one purchased a property below market value but manages to sell it for a price above market value, his profits earned would be higher. For example, en blocs are a potential way to earn profits, where properties may sell for higher than what its owners originally paid for the property.

Art and collectibles

Investors can purchase and sell fine art for a profit. Some fine art pieces may appreciate over time, earning investors a handsome sum of money. However, investors must be careful about the kinds of pieces that they choose to invest in as not all art pieces on the market may be authentic or appreciate in value. To ensure this, it is best to invest in art through licensed art dealers to avoid purchasing counterfeit pieces and to accurately value the pieces. In Singapore, investors wanting to trade art pieces may attend The Affordable Art Fair held twice yearly, where they may sell art pieces for up to $15,000.

Investors can also trade collectible coins, which can be found on online platforms such as eBay. Investors should do their research or seek expert advice before investing in art and collectibles, to ensure that they understand the true value of the investment as well as to ensure they are dabbling in only authentic goods.


A cryptocurrency is a digital or virtual currency designed to work as a medium of exchange. Cryptocurrency trading does not require a high start-up capital and opportunities to enter the market are 24/7. The value of cryptocurrencies are widely known to be volatile and unpredictable. Similar to stocks, investors trade cryptocurrency on stock exchanges. There are two ways to obtain cryptocurrency, through “mining” and or buying them from a trading platform. There are many trading platforms now in Singapore that enable you to buy and sell cryptocurrencies. Cryptocurrencies are presently unregulated in Singapore and most of the world. Due to the lack of regulations, cryptocurrencies are highly volatile and investor sentiments tend to fluctuate wildly.

Peer-to-Peer lending

Peer-to-Peer lending (or P2P lending), or debt crowdfunding, is a concept whereby businesses approach a crowdfunding platform for loans which are then funded by a pool of investors. Investors earn interest, paid by borrowers, as returns on their investment. With Funding Societies, you can invest from as low as $20. With a risk-based pricing, investors should remain cautious that there may be higher risks involved in investments which bring higher returns (from higher interest rates). The main risk comes in the form of defaults by borrowers who are unable to repay the loan. Investors should choose a P2P lending platform which carries out comprehensive due diligence on each investment opportunity. However, investors should still note they are not immunised from risk entirely.

Should you invest in alternative assets?

As with any investment, it is important for you to fully understand the investment opportunity before putting any money into it. While there is no harm in diversifying your portfolio and giving alternative investments a try, you should invest in line with your risk appetite.

Thinking Of Your Own F&B Stall Or Restaurant Business? Here Are The Costs You Need To Be Prepared For

Following the announcement that NTUC Foodfare will be acquiring the Kopitiam chain of food courts and hawker centres,  there have  been plenty of discussion about how high costs have been crippling hawkers and would-be hawkers.

Whether you’re an experienced restaurant owner dreaming of Michelin stars or an aspiring café owner looking to open your own café, financing your F&B business can be extremely challenging in Singapore. Thus, here are some of the costs you need to be aware about.

How much does it cost to start a restaurant business in Singapore?

A restaurant business can be expected to incur the following expenses:

1. Rental

The location of a restaurant will determine the traffic and footfall to the restaurant. Being located in the busy Central Business District may be more desirable than being located in the heartlands due to the amount of traffic expected in the CBD. However, rentals in the CBD can cost upwards of $12 per square feet per month as compared to $4 per square feet in the heartlands.

2. Furnishing & Renovation

Restauranteurs may need to renovate newly rented spaces in order to maximize the seating spaces while ensuring that there is enough room for the crew to work. In addition, if the location does not have pre-existing furnishings, you would need to finance the purchase of furniture and fixtures.

3. Equipment

Depending on the cuisine and food that you are serving, specialized equipment may be required. A simple case, for example, if you serve waffles in your café, you would need a waffle machine. Commercial kitchen equipment can cost anywhere between S$5,000 over S$50,000.

4. Manpower

Staffing costs for restaurant businesses may be lower to other industries, however, there remains a need for training. Also, as the employer, you will need to contribute up to an additional 17 percent of your employee’s pay to CPF.

5. Licensing & Franchise

If you are a serial entrepreneur looking to buy a franchise, you would be liable for franchising fees as well as licensing fees, which may cost thousands of dollars.

6. Raw Ingredients & Inventory

Unless you have existing connections to suppliers or buy in huge bulk amounts, it is unlikely that you will be able to minimize your costs.

7. Business Expansion

In order to ensure that your business is competitive, there is a need to always expand into new markets and with expansion comes the need for funds.

New challenges ahead for the industry

In Singapore Budget 2018, the Singapore government announced an increase in GST from 7% to 9% from 2021 to 2025. Therefore, it is paramount that restaurant owners should prepare for the increase in GST by ensuring that their business model is adjusted to ensure that the hike will not hurt their profitability. Measures may include business expansion and the hiring of more staff. Although these may seem like large expenditures, they might be a necessity in order to ensure the business is viable in the future.

Financing your restaurant business through loans

In general, the perceived risk of F&B industries may be considered higher compared to other industries by banks & financial institutions due to demand uncertainty of F&B industries. Typically, banks require a two to three-year track record with a positive cash flow for a loan to be approved.

At Funding Societies, we understand the challenges of running a restaurant business – as put forward by one of our restaurant entrepreneur & SME owner, Mr. Raj from the Homely Raj chain of restaurants, obtaining a loan is not easy due to past bad credit records.

Funding Societies offers financing options to SMEs that might not meet traditional bank’s requirements. As the largest P2P financing company in South East Asia, it offers competitive SME business loans, which are great short-term financing options. In addition, it offers one of the largest available P2P invoice financing loan (up to S$1,000,000) and it is one of the fastest financing options for SMEs (with the disbursement of funds as quick as 1 day)

What Is An Escrow – And Can It Help Reduce Risk For P2P Investors?

When conducting important transactions that involve numerous intricacies, it is essential that safeguarding measures are in place to protect the interests of both parties. One efficient and common approach is none other than utilising an escrow account.

What exactly is an escrow account?

Now what exactly does escrow imply, and how does an escrow account work? Escrow refers to the use of a third party entity that is not directly involved in the transaction or contract, to safe keep documents, funds and the likes before the transaction is finalised. Terms and conditions are drafted by immediate parties (e.g. mortgagor and mortgagee) before the escrow account is created. If the agreements fall through, funds will be returned to the original owner.

Funding Societies understands the importance of building trust with investors and borrowers, and became the first peer-to-peer (P2P) lending platform in Singapore to use an escrow. We engage Vista Trust Singapore, which is regulated by the Monetary Authority of Singapore (MAS). This ensures that our borrowers and investors go through the Know-Your-Customer (KYC) process- a compliance process to verify their identity, and that all monetary transactions uphold the requisitions of the Anti-Money Laundering Act.

Why is Escrow important for a P2P lending platform?

First, it ensures transparent transactions. Funds will not be transferred directly into the business account of the platform at any point in time. Rather, it goes from the investor to the escrow and finally the business as a loan, upon fulfillment of all terms and conditions. Essentially, an escrow serves as an intermediary that acts on behalf of investors or businesses to guard and transfer the funds such that neither parties have immediate access to it. Thus, all stakeholders involved in the transaction can rest assured that no underhand dealings will take place.

Second, escrow acts as a second line of safety for investors like yourself. In the event that the platform goes bankrupt,  the escrow agent will continue to collect repayments for ongoing loans from the borrowers to pay the investors. In other words, investors’ money is protected by the escrow and the terms are still fulfilled.

Why should Funding Societies be your chosen P2P investment platform?

At Funding Societies, earning trust from our clients is our priority. This is the core reason why we dedicate time, effort and resources to engage an escrow agent to serve both ourselves and clients. We want to do things right, and gain the trust and support of our most valued clients.

Introducing CrowdFund Talks, A Community for Savvy and Discerning Investors

There are many forums out there but few that focus on investments in crowdfunding and alternative investments.

CrowdFund Talks is Funding Societies’ very own community page. They are firm believers of the collective wisdom of the crowds – after all, they’re a crowdfunding platform! They  wanted to create a platform where everyone is welcome to get involved, discuss, and share their experiences on alternative investments. By reading and contributing actively, you can benefit from the wisdom of crowds.

Be a subject matter expert

Join in the community and share your thoughts on the world of investing. Whether you’re a fresh graduate or a retiree, share your investing experience and hear from other users. Listen to others share their investment strategies and ideas for investments.

Crowdsource your burning questions

Confused about basic investing and Peer-to-Peer lending? Whether you’ve invested in bonds, stocks, deposits, property, or a new instrument like crowdfunding and bitcoins, come to crowdfund talks and start your own thread now and find the answer you’re looking for!

Give feedback and see them implemented

Make an impact with your opinions. Over the past year, the team at Funding Societies has taken some of the users’ feedback and implemented them on our investors’ platform.  A recent case was when Crowdfund Talks forum user Jonas requested for a portfolio download option. The Funding Societies team agreed the feature would greatly benefit our investors and they went ahead and implemented the feature!


Get rewarded while learning about alternative finance

At Crowdfund Talks, the opinion of investors is valued and they rate quality knowledge highly. Generous givers of learning are recognised with points and there is even awards for top contributors!

Be part of a vibrant crowdfunding community

Crowdfund Talks has been around for a year now and it has evolved its own distinctive culture. On top of that, they also host meetups with the community!

In the first community meetup in KL, active members were treated to a nice dinner catch-up where members shared their respective p2p experiences and progress, and eventually exchanged contacts to stay in touch! Joseph, one of the Top 5 Contributors was even presented with a prize.

In the spirit of community and two-way communication, feel free to reach out to Funding Societies should you have any questions, thoughts, and feedback through the forum. Your input will help create the best possible site for crowdfunding conversations and discussions.

While the forum is owned and operated by Funding Societies, they have committed to operating on a light-touch model and allow users to discuss freely, only moderating if there is harmful or offensive content (or otherwise violating other Content Guidelines).

Welcome to CrowdFund Talks. Check it out here!

S$200 Million Mark Reached For P2P Crowdfunding Platform Funding Societies

Funding Societies announced that they have surpassed the SGD 200 million mark in total crowdfunded SME loans. This achievement came just 6 months after crossing SGD 100 million in January this year. In the same period, its investor base has also increased from about 40,000 to  75,000, indicating strong demand from investors to support local SMEs while diversifying their investment portfolio.

Kelvin Teo, co-founder and CEO of Funding Societies commented, “It took 30 months to achieve our first S$100M and 6 months for our second S$100M. But the industry is still nascent. We’d continue to focus on serving SMEs’ and investors’ needs.” Kelvin is also the c0-chair for the Singapore Fintech Association’s Marketplace Lending Committee.

As you probably know, Funding Societies provides business financing to underserved SMEs for their working capital and expansion needs across Singapore, Indonesia and Malaysia. This is done through its digital marketplace platform where retail and institutional investors come together to lend to the SMEs. Businesses can avail loans ranging from just SGD 5,000 going up to SGD 2 million and with a quick turnaround time,  as fast as 2 hours for loan approval and 24 hours for SMEs to receive the funds. On the other spectrum, investors who lend to the SMEs through the platform receive up to 14% per annum in returns and can invest starting from just SGD 20 per loan. In linking SMEs and investors, Funding Societies has achieved a notable track record of less than 1.5% in default rate, one of the lowest in the region.

According to the SME Development Survey by DP Information Group, 35% of SMEs in Singapore surveyed in 2017 face finance-related issues, up from just 14% in 2015. This problem is further compounded, with 81% of these Singapore SMEs experiencing delayed payments from their customers, a jump from just 14% in the previous year. The problem of cash flow management faced by SMEs is an issue that needs to be addressed. Funding Societies is committed to support SMEs by providing more flexible business loans to suit the financing needs of these SMEs.

Funding Societies has been innovating to serve SMEs. In 2016, it launched FS Bolt, a first-in-Singapore mobile app based loans meant for micro and young businesses. Funding Societies was also the first FinTech firm to adopt MyInfo under GovTech’s initiative, to simplify SMEs’ loan application process. In the last few months, Funding Societies introduced  Property-backed Secured Loans as well as an enhanced version of Invoice Financing where based on past aging, for well paying debtors, the tenor can be extended up to 120 days.

Most SMEs Funding Societies has funded come from diverse sectors and do not receive adequate financing through traditional options. Others have existing bank loans but approach Funding Societies for fast and short term bridging loans. The speed of crowdfunding is fast with loan campaigns getting funded within minutes for small loans to a few hours for larger loans. The efficient crowdfunding reflects a strong demand by local investors and provides SMEs access to funds in a shorter time frame.

In its recent Series B funding led by SoftBank Ventures Korea, Funding Societies raised US $25 million, the largest for a peer-to-peer lending platform in Southeast Asia. The funding round was supported by global and local investors like Sequoia India and Golden Gate Ventures.

Funding Societies has earned many local as well as global awards and recognition over the last one year. Its Indonesian entity Modalku won the Global SME Excellence Award from United Nations’ ITU Telecom late last year – the first and only Asian startup to win the award. It has earlier won the Fintech Award from Monetary Authority of Singapore (MAS) and was recently recognised amongst the Best 50 Companies to Work for globally by Silicon Review. The local and international awards highlight the impact of financial technology on SMEs and society as a whole.

News of this milestone for Funding Societies, and the larger P2P lending space, also made it to Digital News Asia and Crowdfund Insider.

How To Get Financially Organised With Your Other Half

If you ask psychologists the secret to a happy and successful marriage, they would probably tell you to be in the moment with your partner, always focus on the positive, keep the love alive, etc. In romantic relationships, especially when you are considering the next step, i.e., getting married, it totally makes sense to keep romance at the center – it’s the element that keeps the relationship going. But dedicating all your time and energy to maintain the romance is dangerous, as it takes many facets to create a successful marriage. An important factor to consider? Your financial situation.

You and your significant other may be well, but are your finances well? Once you get married, many things become intertwined. Literally, two different people – their individual systems, habits, weaknesses, etc. – become one unit. Whether you like it or not, an important aspect that is always, always linked with marriage and one that you can never get away from is (surprise!) money. In fact, Terri Orbuch, a therapist and researcher, said that “Money is the No. 1 source of conflict in relationships.” However, fear not! Marriage is a beautiful thing. Marriage + money? When done right, you’ve set up the foundation for a happy, lasting union.

Ditch the “My Money/Your Money” Mindset

At first, it will be hard to think of your earnings as “our” money, especially when you and your partner have different attitudes towards money. You may be a spender, while your partner may be an avid saver. But now that you’re together, it would be wise to decide right away how you and your partner would manage finances as a married couple. One of the first money questions that couples planning to marry should ask is how they would deal with bank accounts. Will you have separate accounts? Or will you both create a joint account? Or will you have a mix of both separate and joint accounts? The decision is yours and your partner’s to make, but remember to come to an agreement early on. Most of the time, it helps to establish a combination of both joint and individual accounts. The former should be used for family expenses, such as mortgage or rent, utilities, groceries, etc., while the latter can be utilized for your personal spending – be it a handbag or a weekend getaway to Bali with your homies.

But before you start talking about bank accounts, take a step back and assess your current financial health together with your loved one. Some of the things that are crucial for you to consider reviewing include:

  • Savings ratio,
  • Debt to income ratio,
  • Emergency savings,
  • Net worth statement,
  • Expenses.

And if you haven’t already, do yourself and your married life a favor by creating a basic financial plan.

Budget, Budget, Budget

Once you’ve gotten used to the concept of “our money”, it’s time to budget. If you’re used to budgeting solo, this is the time to get serious about creating a family budget. As previously mentioned, your partner may have spending habits completely different from yours. Similarly, he/she may bring assets or liabilities into the household. Taking time to set up a budget would not only help to keep your lifestyle in check, it would also contribute to financial success in your marriage.

To develop the most realistic household budget, keep in mind both short and long-term expenses. Your partner and you must understand where your money is going every month. When you’re done building your family budget, stick to it and update when needed.

In terms of investing, it is recommended to diversify your investments by allocating your funds into various financial instruments and industries. Doing so could help mitigate investment risk. You and your partner can construct an investment portfolio according to your preferences and risk tolerance. For instance, 70% of your portfolio can be directed towards deposits and bonds, 20% in stocks, and 10% in cash or likewise. The more you diversify, the more you minimize risk. Every investment has risks involved, so your partner and you should discuss how adventurous your investment portfolio would be. Keep in mind your shared financial goals to direct your decision.

Open & Often Money Talks

In a study by Fidelity, 72% of couples say they communicate very well with each other on financial matters, yet more than 40% of the couples surveyed didn’t know about their partners’ earnings. If you’re in a relationship and thinking of marriage, you already know that communication is key. The same goes for money matters. You need honest, frequent conversations. Strive to do it weekly, but bi-monthly or monthly is fine. Ease into it by talking about career goals, how many children you’d like to have, future vacation plans, retirement plans, and so on. Then move on to everything money-related: money history, money goals, money fears, money weaknesses, the works.

It’s normal for a couple to have differences in financial knowledge and experiences. More often than not, one spouse takes the lead in money matters, as he/she has the better skill set to evaluate investment options or complex financial transactions. This is totally okay, as long as the other person is also involved and well-informed. Without these open and often money talks, lack of awareness from your spouse and/or you might lead to bigger problems down the road.

Money management in our personal lives is a huge deal, let alone in a marriage. This money journey belongs to your other half and you, so walk the journey together and build your wealth together. Your partner and you deserve a happy and lasting marriage – don’t let finance cause your relationship grief. Of course, every couple is different. Hence, there’s no “one system fits all” when it comes to money management in marriage. It’s never guaranteed to be easy, but one thing is for sure: planning ahead definitely helps.

This article was written by Funding Societies, Singapore’s leading peer-to-peer (P2P) lending platform. They provide working capital loans for small and medium-sized enterprises (SMEs), along with attractive investment opportunities to the broader public. To learn more about them, visit their website here.

Singapore Fintech Association Launches New Marketplace Lending Committee

In response to the dynamic growth and future potential of the P2P lending space for both companies and retail investors, the Singapore Fintech Association (SFA) recently announced the creation of Marketplace Lending Committee. Kelvin Teo, CEO and co-founder of Funding Societies was appointed as Co-Chair of this newly-created committee.

P2P Lending: A Growing Sector

The alternative finance industry, or marketplace lending, has become increasingly popular regionally in recent times and has been growing at an impressive pace.

In 2016, Southeast Asia’s alternative finance market grew 363% from 2015 to a value of US$215.94 million, with marketplace business lending amounting to more than half of the market’s value. Further data showed that the market size of Singapore’s marketplace business lending grew almost 10x from US$9.43million in 2015 to $88.4million in 2016.

In 2016, MAS created regulations for securities-based crowdfunding. Funding Societies was one of the first to acquire a CMS license and has grown significantly to become the leading platform in Indonesia as well as Malaysia.

Singapore Fintech Association’s Marketplace Lending Committee

Marketplace Lending Committee aims to represent all marketplace lenders, nurture and build relationships, design and promote good practices, and play a part in ensuring that the industry remains a reliable and viable source of alternative financing for business owners.

The committee is made up of online lenders licensed by the Monetary Authority of Singapore of the Capital Market Service License.

The Marketplace Lending Committee’s initial tasks are to design and promote best practices, industry guidelines and codes of conduct in a collaborative and open manner. This is to encourage transparency between market participants.

Kelvin Teo, Co-Chair of Marketplace Lending, CEO of Funding Societies, stated:

“Working together, we believe this is the first step towards building a healthy and sustainable marketplace lending industry.”

To find out more about Marketplace Lending committee or the Singapore Fintech Association, please visit their website.

(Images Credit: Singapore Fintech Association)

4 Reasons To Consider Investing With Funding Societies

Peer-to-peer lending, or P2P lending, utilizes technology and big data to connect investors and small and medium-sized enterprises (SMEs) looking for business funding. To investors, it can function as an alternative investment that gives them an opportunity to earn passive income by financing business loans for SMEs.

In Southeast Asia, P2P lending has witnessed significant growth in recent years, led predominantly by Singapore. To date, around 60 platforms are currently operating in the online lending and crowdfunding space, which have become an increasingly popular alternative investment option.

If you’re wondering how you can take part in investing with P2P lending, Funding Societies would be a great place to explore. As of May 2018, Funding Societies has onboarded more than 70,000 investors across Singapore, Indonesia and Malaysia and provided more than S$160 million worth of investment opportunities in crowdfunded loans.

Here are four things you can expect when investing in P2P lending through Funding Societies.

# 1 Business loan products with short tenors

Funding Societies offers three investment products: Business Term Loan, Invoice Financing, and the newly launched Property-Backed Business Loan. Business Term Loan allows you to make investments by financing SME loans with tenors ranging from 1-12 months. In return, you will receive monthly repayments of principal and interests. You can maximize your returns by reinvesting your repayments to new loans.

Meanwhile, with Invoice Financing, SMEs would be able to cash out by pledging their invoices to Funding Societies. Invoice Financing has a shorter tenor, which generally lasts for only 30-120 days with a one-time repayment of principal and interest at the end of the tenor.

With Property-Backed Business Loan, investments are secured by a property (residential, industrial, or commercial). Different from the other products, Property-backed Business Loans offer security in the form of property as a collateral, and is a good option to add diversification to your investment portfolio.

# 2 Potential returns as high as 14% p.a.

As an investor, the returns you get from your P2P lending investments come in the form of interests paid by SMEs.

Given that P2P loans are generally more flexible in its tenor and SMEs that get financing from Funding Societies have shorter or imperfect operational track records, interest rates are determined accordingly based on risk, in the range of 8-14% p.a.. Higher risks typically come with higher returns, so investors should invest based on their appetite for risk.

# 3 Regular updates from the platform

Expect to get regular updates from Funding Societies as an investor on the platform! With every important event or update, the platform sends alerts via email or in-app notifications so that investors are constantly kept up to date with us.

For instance, whenever there is an upcoming loan for crowdfunding, investors will receive an email notification. In the event of late repayment or if there’s an update for specific loans, Funding Societies will also communicate in the quickest and most transparent way. So make sure you switch on your app notifications for any important alerts!

If you need any further clarifications, Miyu, Funding Societies’ very own chatbot, and our customer experience (CX) team will be happy to answer all of your questions via live chat. Or call us at 62210958 to have a quick chat with our team.

# 4 Well-designed User Interface

Funding Societies Website

Funding Societies Mobile App

Investors should be able to review their portfolios easily. That’s why Funding Societies’ website has recently been improved to provide details of your investment portfolio in a clear and concise manner.

In addition, since 80% of Funding Societies’ investors access our platform via their mobile phone, the company has created a Funding Societies mobile app to cater to all mobile users out there. As an investor, you can review your portfolio, change your auto-invest settings, crowdfund a loan, and even use the live chat feature — all in one app! It’s simple, convenient and efficient.

Funding Societies is also constantly taking feedback from investors and working on them to improve the whole experience for you.

About Funding Societies

Funding Societies is the leading digital P2P lending platform in Southeast Asia and is operating in Singapore under the Capital Markets Services license issued by the Monetary Authority of Singapore (MAS). Recently, it has raised a Series B round of funding, the largest by a P2P lending platform in Southeast Asia. Funding Societies is also the only P2P lender to have received the Fintech Award given by MAS.

Sign up as an investor with Funding Societies now!

Here Are The Reasons For FinTech’s Rapid Growth in Southeast Asia

After the financial technology (FinTech) industry’s start in the West, notably in Europe and in the USA, its innovations have established themselves across various markets. FinTech has also experienced adoption and high growth in China. But if we are searching for financial technology’s next hot region, it would be Southeast Asia.

Why is Southeast Asia poised for the rapid growth of FinTech? Right now, the region has favorable conditions that would spur adoption and expansion. Below are four of them.

The Population is Huge

Southeast Asia has an enormous population of 630 million people, 50% of them under the age of 30. Southeast Asia’s urban population is expected to expand to 373 million people by 2030. The young, urban demographic is generally digital-savvy, with many of them partial to convenient mobile solutions for financial services and personal finance tools – this makes the Southeast Asia region fertile ground for the entrance of FinTech.

Mobile Phone Connectivity

Mobile connectivity has been growing rapidly in the region, especially in Cambodia (173%), Thailand (133%), Vietnam (131%), and Myanmar (93%). Mobiles have become the most popular communication devices in Southeast Asia and every month, there are around 3.8 million more Southeast Asians connected to the Internet. In Thailand alone, a consumer spends an average of 4.4 hours per day on social media.

Financial technology, with its innovations of mobile-based money transfers, e-wallets, alternative financing, and other online-based finance tools, is likely to capture the digital savvy population of Southeast Asia. In fact, financial technology opens opportunities to those previously underserved, as FinTech services are often online-based, without having users enter a brick-and-mortar location.

The Opportunity to Serve a Large Unbanked Market

According to the World Bank, 2 billion people around the world don’t have access to formal financial services, with over 50% spread across Asia. While the statistic is not a pleasant one for the market, it opens opportunities for the FinTech industry to grow in Asia, including Southeast Asia. FinTech’s digital-based solutions can be one of the most cost-effective methods of delivering financial services to those previously unserved.

Consumption Rate is Increasing

In 2025, the middle class of Southeast Asia is predicted to increase to over 440 million people. This will lead to growth across most consumer sectors, especially for e-commerce. With easier access to online shopping, thanks to higher mobile penetration, better logistics, and improved infrastructure, FinTech companies can provide another piece to the infrastructure by providing inclusive financial services through e-commerce channels, while cross-border payments can harmonize regional payment flows.

These four factors will shape the face of FinTech in Southeast Asia, as well as ensure that the region is at the forefront of financial technology.

This article was written by Funding Societies, Singapore’s leading peer-to-peer (P2P) lending platform. We provide working capital loans for small and medium-sized enterprises (SMEs), along with attractive investment opportunities to the broader public. To learn more about us, click on our website here.