Get $20 cashback for this short term investment backed by Singapore properties

Debt crowdfunding, commonly known as peer-to-peer (P2P) lending is an investment concept where individuals & institutions together invest in loans to SMEs and earn returns in the form of interests. Considerably disruptive, the industry adopts a business model targeting the underserved SMEs by employing technology to directly link investors with them. Funding Societies is the largest such platform in Southeast Asia, having financed over S$1.3B worth of funds via their platform.

About Funding Societies

The platform is licensed and has operations in Singapore, Indonesia and Malaysia. Backed by Sequoia India and Softbank Ventures Asia amongst many others, the platform has grown at a rapid pace since they launched in 2015 in Singapore. The main risk in this investment is default risk of the loans. A few things to note when investing with Funding Societies:

  • Low barrier to entry: Investors can invest as low as $20 per loan
  • Short tenor: Investment tenors are quite short ranging from 1 to 12 months
  • Returns on Investment: Interest rates usually range between 3% to 5% per annum for a Guaranteed Investment product, 6% to 8% per annum for a Property-backed investment and 8% to 18% per annum for Invoice financing and Working capital related investments
  • Default Rate: The Singapore platform default rate is 1.89% while for Property Backed Secured Investment its 0% (no defaults till date)

To subscribe and start investing, just fill a 5 minute form here

Investing in these uncertain times

In light of the current economic uncertainties, Funding Societies has taken the approach to offer more investment notes for products that are more secure and have collateral backing it. For the purposes of this article, we will be looking at the Property-backed Secured Investment (PBSI) product.

About Property-backed Secured Investment (PBSI)

  • Investments backed by Singapore properties
  • Interest rates usually between 6% to 8% per annum
  • No defaults till date

PBSI is a crowdfunding investment made by investors in the form of a loan to a SME that is backed by a local property as collateral on a first lien basis. These pledged properties can be residential, commercial or industrial. Such properties may be owned by the companies and/or directors of the companies. What it means is that if the company defaults, the platform can liquidate the property to recover the principal and interest and pay back to the investors. To ensure that property price fluctuations do not impact the liquidation process, Funding Societies usually does not give loans of more than 70% of the property value and also takes into account forced sale value. Click here for more information on PBSI product.

Given that the loans are backed by collateral, PBSI is perceived to have a lower risk than other products on the platform. The rate of interest usually ranges between 6% – 8% per annum on a simple interest basis. This product portfolio has done very well so far with no defaults in more than 1.5 years since launch. While having a property as collateral does not mitigate default risk, it does provide an alternative helpline when seeking fund recovery should there be a default. At this point, it is important to note that past performance of the rates of return does not indicate future rates of return.

To reiterate, the reason behind the lower interest rate is due to PBSIs being generally less risky, given that these notes are backed by Singapore based properties. As the properties can be disposed off or auctioned by Funding Societies in the event of a default, the likelihood of recovering the principal and interest is considerably higher. More information on the interest rates for PBSIs can be found here.

While the returns are typically comparatively lower than unsecured products like Business Term Loans or Invoice Financing on Funding Societies, it can possibly be higher than some of the other investment vehicles in Singapore such as fixed deposits, certain bonds, and other fixed repayment investments. Investors will need to do their due diligence and access their risk appetite when studying various products.

To subscribe and start investing just fill a 5 minute form here

Importance of investment diversification

Just as how it is important to diversify your traditional investment portfolio across geographical areas, business types and investment types, the same is true for Debt Crowdfunding.

PBSIs can be an option to consider when opting for product diversification. By investing into both secured and unsecured products, the overall portfolio can be more balanced out to better weather storms.

Conclusion

Technological advancements have made multiple means of investment available to retail investors. While unimaginable a decade ago, retail investors today now have a large pool of investment opportunities to pick and choose from. When taking calculated risks, investors will need to fully understand the product that they are interested in. Beyond that, reading up and keeping up with trends is also crucial.

If you have done your own due diligence and decided to invest with Funding Societies, they currently have a promotion for new investors. Sign up with promo code MD20 and make a total investment of S$200 by 30th April to get a S$20 cashback.

Terms and Conditions apply

Investors must sign up with the aforementioned promo code and make a total investment of at least S$200 by 30th April 2020 to be eligible for the $20 cashback. Cashback will be credited into the eligible investors’ accounts by the end of May 2020. Funding Societies’ investor T&Cs apply.

Disclaimers:

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.

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.

All information in this article is accurate as of 2nd April 2020

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How To Stretch Your Dollar When Decorating Your Flat

With the rising real estate prices and fast-paced lifestyle, people opt to live in HDB flats or apartments. Individuals find it convenient to live in these types of residences given that these are easily accessible to workplaces and commercial areas, offers facilities and amenities, and provides better security. Despite all these advantages, living in a flat means having to deal with a limited space in comparison to house.

In my quest to find ways to maximize the functionality and design of my space, I tapped my Interior Designer friend. Here are some tips that Interior Designer Krishna L. generously shared to me.

#1: PLAN THE SPACE

Having a small space requires identifying the distribution of areas. It is important to recognize the functions and activities that take place in each zone. Adequate planning makes it easier to know what types of furnishings are needed within the space. This helps save time and money for the owners. Personally, I love watching Never Too Small on YouTube as this channel shows how to plan space sections within micro-apartments.

#2: REMEMBER – LESS IS MORE

Given the space available, it is necessary to make use of the space wisely. Having too many things going on in a small space makes it cramped and chaotic. Avoid overcrowding the space and know which items are essential in order to conserve more space.

#3: ELEVATE FURNISHINGS

One way of giving an illusion of spaciousness is keeping things off the floor. Make furniture pieces and fixtures “float” – opt for sofa and tables with exposed legs and mount shelves on wall – to achieve an illusion of a bigger space. Not only does this make the space larger but also provides a room for additional storage.

#4: INVEST IN MULTI-FUNCTIONAL PIECES

A limited space requires flexibility in terms of utility and functionality. Looking for furniture pieces that provide more than one function can save money and space.

#5: MAXIMIZE VERTICAL SPACE

Condominiums and apartments often less square footage than a traditional residential space. Thus, it is better to take advantage of the walls. Use floor-to-ceiling cabinets or shelves for storage and display, mount wall decors and art or add tall plants to make the room appear larger.

Image Credits: 3aces.ph

#6: ADD MIRRORS

It is a well-known fact that mirrors can make a small space appear grander. Mirrors not only give the illusion of a greater square footage but also reflects natural and artificial light, thereby creating an impression of a bigger space.

#7: CONSIDER THE LIGHTING

Natural lighting provides a healthier well-being but also helps open up a room. However, condominiums have limited access to natural light since there are less windows. It can be useful to have a variety of artificial lighting to achieve a great atmosphere and warm ambiance within a space. Lighting placement can either make or break a space, so it must be thoroughly planned.

#8: FIND THE RIGHT COLOR THEME

Colors can influence the way we view spaces – lighter colors reflect light and give an illusion of space, whereas darker colors absorb light and diminish a space. In order to make a room feel larger, it is good to have the right color palette for the floor, wall, and ceiling. This does not necessarily mean limiting your options with an all-white interior; rather, use a color scheme that create cohesion and unity. Choosing monochromatic or neutral colors, for instance, can make the space feel airy, open, and visually bigger. Applying dark or bold color or pattern sparingly to accent wall, furniture, or decors can create depth, contrast, and personality to the space.

#9: CHOOSE THE FLOORING WISELY

Like color schemes, flooring surfaces can greatly impact the size of a space. It is better to avoid using a contrasting color for the flooring. Choose hues for carpets, tiles, and wood flooring that would complement the walls and ceiling to achieve continuity. Light-colored wooden floor planks that are either wide or long can make a space look bigger.

#10: ADD GREENERY

Plants greatly benefits one’s health. Having indoor plants can make the space brighter and lively. Moreover, it gardening is a good hobby to dwell on as you work from home or obey the stay-at-home notice.

Image Credits: unsplash.com

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TPG launches 50GB for $10 mobile plan in Singapore

TPG Telecom, Singapore’s fourth telco, is launching its first commercial mobile plan for the Singapore market.

The TPG “50GB for $10” plan is available from today at just $10 per month for its no-contract SIM Only plan. By offering this plan, TPG is lowering the barriers of entry by setting a new entry point for users. The TPG Prepaid Plan offering the same simplicity will be launched at a later date.

The service includes:

  • 50GB Data
  • 300 Local Call minutes
  • 30 Local SMS
  • 1GB Data Roaming in selected countries (effective 1 May 2020)
  • Mobile Number Portability is available
  • Number Selection will be available effective 1 May 2020

Registration and collection
Customers can register for the TPG 50GB SIM Only plan on TPG’s website here: https://www.tpgmobile.sg/. Upon successful registration, they can immediately visit any of TPG’s designated collection centres to collect their SIM card.

The TPG network supports specific VoLTE devices for high-definition mobile voice calling. To support customers who are using non-VoLTE compatible handsets, TPG has created an easyto-use TPG 4G Voice app to allow customers to make and receive calls, which can be downloaded from Google Play or App Store.

Get $250 Cash via PayNow when you apply for the new Citi Cash Back+ Card from 11 – 31 Mar 20

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Inexpensive At-Home Activities You Can Enjoy With Your Child

Kicking off the month of April is the new educational structure advised by Education Minister Ong Ye Kung. Last Friday, he highlighted that all schools will conduct one day of home-based learning in light of the recent spike in COVID-19 cases in Singapore. This re-structuring will help prepare the parents and students if more days of home-based learning will be necessary.

Primary schools will conduct home-based learning o Wednesdays, Secondary schools will apply ths on Thursdays. The rest of the institutes will be having it on Fridays. These social distancing efforts are on top of the enrichment and tuition centers’ closure. The question on the parents’ minds now is: “What will the children do all day?”

The key to extending the learning at home is to make a routine. Students are used to following a schedule. Mimic this blueprint by creating a distinct schedule to help the continuous flow of their home-based education day. The goal is to keep your children busy as you tend to other matters.

TIP #1: FOLLOW THE ADVISE OF THE TEACHERS

As teachers will be giving their assignments through emails and other platforms, you may start the day with those modules. Study time may last from 30 minutes to an hour and a half. Allow heavy subjects and academic assignments to be engraved during this block of time.

TIP #2: DEDICATE A BLOCK FOR PLAY

Allow your children to have at least 15 to 30 minutes of time of dedicated child-led play. Provide materials that will cater to their interests and allow them to play. When a child is playing, it stimulates different facets such as imagination, creativity, innovation, and socialization. You may provide a bin filled with educational toys and art materials. Serious learning can take place while having fun.

TIP #3: SCHEDULE A TIME FOR READING

Being at home all day gives you a chance to increase the child’s habit of reading. Gather your books at home or download free books online. Schedule at least 20 minutes of reading time per day to engrave the importance of reading. Remember that this block is the total amount of minutes. You may break it apart throughout the day. In the first half, you may be the only one talking. The adult will read the book aloud for the child. As the day ends, you may let your child to read the same book by himself or herself. Do not worry if your child wants to extend the reading block! Reading is beneficial for your child’s language proficiency and vocabulary expansion.

TIP #4: SPARE SOME TIME FOR GROOMING AND SELF-HELP SKILLS

As an educator, I believe that children learn best through experiences. Let your child experience household chores to learn more about responsibility and self-reliance. Assign 10 to 15 minutes of time for household chores and other self-help activities. Guide your child as they clean their rooms, sweep the floors, wash the dishes, or fold the clothes. They can use these skills as they grow up. More importantly, those are less tasks for you to fill.

TIP #5: ALLOT A BLOCK FOR SCREEN TIME

Whether we admit it or not, technology has been a part of our children’s lives. Hence, it is better to adapt and to limit their usage. Keep your children from “over-indulging” on the screens by having a set time in the schedule for screen time. Ideally adults should limit the children’s use of screen time to two hours per day. For instance, you may allow 30 to 45 minutes of screen time before breakfast and after dinner. Follow through the scheduled time by turning the devices and appliances off afterwards. If the house feels too quiet, turn on some delightful music instead.

TIP #6: ALLOW YOUR CHILDREN TO MOVE

It is easy to put down toys for free play. However, children enjoy it when you get to bond with them as you facilitate some indoor activities. A great way to entertain your children while practicing educational skills is to schedule some easy indoor activities. You may plan at least 30 minutes of this category before snack time or before dinner time.

Here are some of the ideas for your indoor play:

a. Build A City: Flatten out a box. Draw a round using markers and paint. Add blocks and other toy vehicles to let your child build his or her own city.

b. Backhand Balloon Balance: Challenge your children to balance a balloon on the back of their hand. See how long they can do it before it falls to the ground. Amp up the stakes by putting water inside the balloon.

c. Long Jump: Put some lines of masking tape or colored electric tape on the floor. Make 6 separate lines of tape, which are one foot apart. Label the first line as the “Starting” line. See how many lines your children can jump over. Have them beat their best score each round. You may even let them jump backwards!

Image Credits: unsplash.com

May you entertain your children while staying safe! 🙂

Sources: 1 & 2

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Singaporeans Get Financial Support And Frozen Government Loans Amid COVID-19 Pandemic

As you may know, many establishments and livelihoods have been put on hold due to the Coronavirus widespread. Floating in limbo led many Singaporeans to worry about their finances, particularly their bills and household expenses. This level of uncertainty is not limited to our country. It happens all over the world! Moreover, it takes a toll on developing countries whose majority relies on daily salaries and meal allowances to survive.

The Singaporean government has put a plan into place. Last Thursday, Deputy Prime Minister Heng Swee Keat said that they “will put more cash in the hands of all families to help them cope”. The cash payouts announced in Budget 2020 will be tripled!

All adult Singaporeans will receive $300, $600, or $900 depending on their income. The amount for parents with at least one Singaporean child aged 20 and younger will receive up to $300 as compared to $100 before. The Workfare Special Payment for lower-income workers will also be increased to $3,000 in cash.

Lastly, the $100 PAssion Card top-up for seniors will be given in cash instead. They will get their money directly in their bank accounts. “This is to avoid the need to queue at top-up stations during this period,” he said.

In addition to supplementary budget, the Government will freeze all fees and charges for its services for one year from April 1. Late payment charges on Housing Board mortgages will be suspended for three months. Graduates who took up Government loans for their university or polytechnic studies will receive a loan repayment suspension for a year from June 1.

Image Credits: unsplash.com

Deputy Prime Minister Heng Swee Keat also highlighted the importance of self-help groups. Grants for self-help groups will be doubled to $20 million over two years. While, community development councils will get $75 million. As he listed various initiatives on his speech, he said that they will “protect jobs, support our workers, and protect livelihoods”. All these efforts are necessary to help the citizens bounce back during these uncertain times.

Sources: 1 & 2

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