With up to 14% returns, consider Peer-to-Peer Lending in your investment portfolio

Alternative investments are gaining popularity due to the high returns that they potentially yield. One such alternative investment that is worth looking at is peer-to-peer(P2P) lending or commonly known as debt-based crowdfunding.

The concept is simple – small and medium business owners looking for funds to expand their businesses take up business loans which are crowdfunded by investors. The interest paid  back by the businesses is the return on investment for the investors.

Funding Societies is a licensed and approved P2P lending platform in Southeast Asia. It is the industry leader with over 30,000 investors in Singapore, Malaysia and Indonesia. As the only P2P lending platform to  win the MAS FinTech Award (SME category, 2016), Funding Societies has also won global recognition, being recognised amongst the Top 250 FinTech companies globally by CB Insights and winning the prestigious SME Global Excellence Award by United Nations’ ITU Telecom.

Here, Funding Societies explains why and how you can invest in P2P lending, a unique investment asset class that is complementary to traditional investments:

LOW BARRIERS OF ENTRY & POTENTIAL HIGH RETURNS

As an Investor, you can read the easy to understand factsheet prepared for each loan and invest only if you like the loan. The minimum investment amount is just  $100 and you can earn interest up to 14% p.a.!

If you are too busy and do not have enough time to read the factsheet then you can invest via the Auto Invest feature. Just set your parameters and let the system invest for you.

On the platform, you can invest in two types of investments:  Term Loans and Invoice Financing. The investment periods for both investments are relatively short, 1 – 12 months for Term Loans and up to 3 months for Invoice Financing.

MONTHLY REPAYMENT TO RE-INVEST EASILY

Suppose you invest into a term loan of 12 months this Christmas, you’ll receive part of your principal and interest paid back on a monthly basis until next Christmas.

Here’s an illustration:

Assuming an investor invests $100 in a loan of 10 months at 12% p.a. interest rate. The monthly repayment is calculated below.

mg1

Therefore, the total interest earned by the investor is $10 at the end of the 10 months.

Assuming that the same investor invests 10 of such loans (10 x $100 per loan), he gets $110 in monthly repayments. The total interest earned will be $100.

Furthermore, the investor can reinvest his interest and principal multiple loans to achieve a compounding effect. Here’s another illustration:

mg2

As shown in the above illustration, the investor re-invested his monthly repayment into new loans and was able to get $109, instead of $100 without re-investing.

LICENSED AND COMPLIANT

Funding Societies holds a Capital Markets Services license issued by the Monetary Authority of Singapore.

They have also gone through multiple  internal and  external audits to ensure that all processes are compliant.

Funding Societies is also one of the first peer-to-peer lending platforms to use an independent escrow account to handle all investor funds. What this means to you as an investor is, Funding Societies does not have direct access to your funds and the funds and investments are safeguarded by the 3rd party trustee (which is also licensed by MAS).

STRINGENT IN CREDIT RISK MANAGEMENT

The key risk in this investment is businesses defaulting on the loans. However, Funding Societies does thorough due diligence on the company to minimize this risk, which is why the default rate is also one of the lowest in the region at just 1.4% as at 30th November 2017. The returns are priced based on risk, amongst multiple factors. As an investor, you have full autonomy to choose which loans you want to invest in, based on your risk/return appetite.

Funding Societies advocates the “skin in the game” concept. The company and members of the management team invest their own money in every loan to not only co-share the returns but also risks with all the investors.

SMART FEATURES TO MAKE THINGS BETTER FOR YOU

Auto-invest feature reduces the time required to monitor opportunities. Simply input your preferred parameters and the system will do the rest.

Live chat with Miyu the chatbot on Funding Societies’ website and get your queries answered 24/7!

Even though Funding Societies is an online platform, they offer a personal, offline experience for investors. Investors can  email, call or visit their office for a no-obligation chat. Funding Societies is also a winner of the Best in Customer Experience for Alternative Financial Services this year, awarded by Retail Banker International. Try out the platform for yourself to experience it!

SIGN UP NOW TO BE AN INVESTOR WITH FUNDING SOCIETIES

Join more than 30,000 other investors on Funding Societies’ platform, and earn returns of up to 14% per annum. Make your $100 (or more) work harder for you this year and collect your ‘bonus’ next Christmas! Sign up as an investor with Funding Societies now.

Disclaimer

This article is contributed by Funding Societies.

It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.

Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any company or investment. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

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Beginning your career in Forex: Tips to remember

It is no wonder that Forex is the biggest and the most attractive business market in the world. Millions of people are starting their career in Forex every day. If you want to trade in Forex, you do not need your office but you only need your computer connection and your strategy. When millions of people are trading in Forex, it might seem that all these people are having a good day. They are trading in the markets and although they can lose their money, they can be on track in Forex with a little hard work.

It is actually not that simple in Forex if you do not know the right way of trading. Most beginners in Forex lose their career after only a few months of trading because either they have no experience of the trading market or they have not quite get it right. They make many mistakes which are quite simple for them but deadly when you are a beginner. If you want to trade in Forex and thinking that you have a basic knowledge on the market, this article might come to your help if you want to avoid the mistakes that beginners make in their trading. It will not only give your career head starts but it will also improve your career smoothly in the market.

Sky is the limit

When you start your trading career you must wonder about the profit factor in this industry. To be honest there is no need to do the extensive calculation as you can easily understand the true benefit of professional trading just by observing the life of the successful Singaporean trader. Being an active trader you will be your boss and you set the limit for the potential loss or profit. However, trading is not all easy. In fact, this is not suitable for everyone. You need to trade this market in a relaxed environment so that you can take the perfect decision. Before you consider trading as your full-time profession it’s highly imperative that you consider demo trading account as your practice field. Never start your trading career with the real money since you might lose your entire trading capital. First of all, learn all the fundamentals of this market so that you can easily place your trade with an extreme level of confidence. Never take any risk which you can withstand. Find the perfect balance between your risk tolerance level and profit factor to survive in this industry.

Don’t start with live account

Many traders start trading in the market with all of the strategies they have got on the internet. It is a big mistake for you if you have just started your darer in Forex. You will see that there are lots of strategies for you but you cannot trade them in the live account when you are new. You should remember that it is an investment market where many traders lost their investment. You have to practice in your demo accounts to give you some foundation on the market trading. It will help you in your career and you can understand why demo accounts are here.

Choose a simple strategy for your beginning

There are many strategies that are used by professionals in Forex. Do not try to impress yourself and choose a simple strategy. If your strategy is simple and it works then it is not simple. Any strategy with a simple touch of your hard work and trading techniques can make your career bloom.

Never overtrade, never rush

This is the mistakes that beginners love to make. Do not overtrade in Forex as you are not going to make money if you have placed many trades in the market. Also, do not hurry. You need to be patient to give time to the markets to work out. Be disciplined in your trading and patient for your strategy to work.

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The Future Of Cashless Payment

Much is known about the fact that Singapore is very much still a predominantly cash-based society. So much so that during the 2017 National Day Rally, Prime Minister Lee Hsien Loong mentioned that Singapore has lagged behind in terms of electronic payments. This comes at a time when other countries have already moved forward to embrace cashless transactions and accepting phone payments with a virtual terminal. This was a wake-up call as a slow adoption rate towards electronic payments has impeded Singapore’s progress towards a Smart Nation. Several organisations and fintech startups have heeded the clarion call and responded with their own cashless mobile apps. None so has delivered in a bigger and more promising way than OPG Asia has with its very own SpherePay.

What is SpherePay

SpherePay is an integrated mobile application that allows both consumers and merchants to process cashless transactions. With a fully equipped and QR-code based transaction system, it aims to promote an ecosystem of digital transactions such as micro loans and mobile wallets. SpherePay is developed by OPG Asia Pte Ltd, one of the world’s leading providers of financial innovation and payment services. OPG Asia is committed to the development of electronic business and operations to improve the operational efficiency of society as a whole. With data security as one of its operating principles, OPG Asia is certified by the Payment Card Industry (‘PCI’) Data Security Standards. This is an important step to gain credibility and trust amongst consumers and merchants.

How To Use SpherePay

For the consumers, SpherePay provides 4 main functions- a) Scan & Pay b) Collect Money c) Top Ups, Withdrawals and D) Advance Cash Credits.

Spherepay

To start using these amazing functions on the SpherePay mobile app, follow this step-by-step guide:

  1. Download SpherePay on the Apple Store or on Google Play and sign up as a registered user.
  2. To start using the Scan & Pay function, tap here to active camera to SCAN Merchant QR Code to pay. If you are transferring money to your peers on SpherePay, also tap this function to scan your peer’s unique QR code.Sphere App high
  3. To collect money from others on SpherePay, click here to activate your own QR code to receive money transfer from others.Sphere App1
  4. To top up or withdraw money on SpherePay, click either of these 2 buttons. Consumers can link their own debit cards or bank accounts to inject or withdraw funds from SpherePay.Sphere App2
  5. To apply for advance cash credits, click here and obtain a quick loan to purchase items at merchant shops. This allows consumer to buy now and pay later. The advance cash credit will also be available on several online and e-commerce stores.

Sphere App13

These 4 key functions effectively form the core of a digital wallet and bring with them countless advantages.

Why Go Cashless With SpherePay

  • SpherePay enables consumers to link all their credit and debit cards into a single app to pay for their purchases by scanning the merchant QR code. With hundreds of merchants island-wide, this means that users can now leave their wallets in the comforts of their homes without worrying about the need for cash.
  • When the moment arrives for bills to be split at the dining table, a SpherePay user can simply transfer money on the app by just scanning the QR code on his friend’s SpherePay app.
  • Going cashless with SpherePay allows the users to snag exclusive promotions and special offers listed by participating merchants on the SpherePay app. Be notified of such exclusive promotions on the SpherePay app with the Location Based Services push notification function.
  • SpherePay is rapidly expanding its footprint. By end of 2018, SpherePay aims to have over 5,000 offline and online merchants island wide. SpherePay’s expansion plans also includes regional footprints with Thailand and Indonesia opening in 1Q2018 and the rest of South-east Asia by end 2018. This means consumers can shop easily in multiple countries without having to worry on changing physical monies at the money changers.

Download SpherePay Today

SpherePay is available for download on Google Play or The Apple Store. Download immediately and you no longer have to worry about bringing your oversized wallet out the next time!

* Note that SpherePay is no longer functioning. 

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Know These 7 Share-worthy Money Facts

It goes without saying that money is essential in all aspects of our lives – it even makes the world go round! We use it just about every day, but how much do we really know about it?

Widen your knowledge about our currency and the history with these 7 share-worthy money facts:

1. From soaps and grains to bear’s teeth and bird’s claw, there have been a variety of bizarre currencies throughout the history. The cowry is one of the longest and most widely used form of money. It is none other than the vibrant shell of a sea snail. Its durability made it a popular choice among the early civilizations.

2. Focus at the back of the S$1,000 note. A microtext of the entire lyrics of the national anthem is printed on it. See for yourself!

3. Why is the piggy bank called as such? Do pigs have their own financial institutions where the tellers would dress in suits? Not in this lifetime! In Old English, “pygg” refers to a type of clay used to make dishes and jars that contained funds. This was eventually morphed to the piggy bank that we know today.

Image Credits: pixabay.com

Image Credits: pixabay.com

4. Why are polymer notes circulated instead of paper notes? For starters, polymer notes last three to four times longer than its paper counterparts. Its tear-resistant feature entails that you do not have to worry about emptying your pockets before loading your jeans into the washing machine. What’s more? Polymore notes have the ability to incorporate more security features.

5. Most modern counting machines can tally about 2,500 coins per minute. While, a bank’s note-counting machine can tally up to 100 bills in four seconds. The machines can also spot counterfeits!

6. Have you ever heard of the Roman goddess Juno? Worry not, if her name does not ring any bells. Let me provide you with a brief insight on Roman mythology. Juno is the “Goddess of Good Counsel”, whose mere name means adviser. While Moneta is the “Goddess of Memory”, a name where words mint and money were acquired from.

Image Credits: pixabay.com

Image Credits: pixabay.com

These two goddesses were symbolized in “The Temple of Juno Moneta”. Ancient Romans made their coins in this temple alone as the goddesses were perceived to protect the funds.

7. The lushious tree found at the S$5 note is an actual tree in the Botanic Gardens. This Tembusu tree is believed to be at least 200 years old. It is even older than the 156-year-old garden! Amazing, right?

That rounds up seven of the most interesting facts about money. Leave a comment below, if you want to share your own mind-blowing or unusual financial fact.

Sources: 1 & 2

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How Your Investment in Peer-to-Peer Lending Supports Local Businesses

Small and medium enterprises (SMEs) are at the heart of Singapore’s economy. They make up 99% of our enterprises, employ two-thirds of our workforce, and account for about half of Singapore’s GDP. To date, there are nearly 200,000 SMEs in Singapore.

While we often see success stories on news and social media, the road to success is sometimes not as straightforward. Find out how you can invest in peer-to-peer (P2P) lending with Funding Societies and support emerging Singapore SMEs.

Your contribution can directly make an impact on the business you’re supporting

According to a 2017 Straits Times poll, 40% of SMEs said that they thought the Singapore economy would grow in the next 12 months and 43% felt positive sales growth was on the cards.

By investing in SMEs through P2P lending, you directly contribute to immediate cashflow needs of the SMEs to grow their businesses. In return, you’re rewarded in monetary returns from the interests of the business loans. Funding Societies is one such platform in Singapore that is supporting local businesses through crowdfunding.

Read about how peer-to-peer lending works.

You earn potentially high returns on your investments while supporting local businesses

P2P lending harnesses the power of people to help local, homegrown businesses to grow and expand. Investing in P2P lending allows you to potentially earn up to 14% per annum returns on your investment.

It is actually really easy to invest in SMEs in Singapore through P2P lending. Funding Societies is a digital P2P lending platform that is dedicated to serving SMEs, therefore the mission of Funding Societies is aptly, “Stronger SMEs, Stronger Societies.” Investors receive monthly repayments which they can re-invest to support even more local businesses.

Support SMEs across multiple industries

The Ministry of Trade and Industry announced a $4.5 Billion industry transformation programme to systematically raise productivity, develop skills, drive innovation, and promote internationalisation, so as to catalyse transformation and achieve the stated vision of each industry. There’s also Infocomm Media Development Authority’s Go Digital Programme — an initiative that allows SMEs to increase productivity and capture more online sales through digitalization of their businesses.

However, the Singapore Budget 2017 recognizes that the government alone cannot help all businesses transform and the need to strengthen partnerships and collaborations in order to help SMEs succeed. Financial institutions, including alternative finance companies such as Funding Societies, play an important role in providing financial support to help SMEs grow and prosper.

As the minimum investment for peer-to-peer lending starts as low as $100 on the Funding Societies platform, you could help the economy holistically by investing in multiple industries and companies at the same time, in turn diversifying your investment portfolio across sectors.

Since its inception in 2015, Funding Societies has already expanded to two more Southeast Asian countries over the last two years – Indonesia and Malaysia. It is the only P2P lending platform to have won the Monetary Authority of Singapore (MAS) Fintech Award in 2016 and was recognised as one of the Top 250 Fintech companies globally.

More than 23,000 investors are already on Funding Societies’ platform regionally. Find out how to invest on the platform here.

Interested? Sign up for your investor account with Funding Societies now.

Disclaimer

This article is contributed by Funding Societies.

It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.

Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

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