The Boy Who Procrastinates (TBWP)

At the time when robo-advisory is making its way into mainstream investing, Singapore has witnessed a burgeoning peer-to-peer (“P2P”) financing industry which starts up an array of opportunities for traders eyeing an alternative income stream. In this specific article, I am posting my experience and figures after completing 100 loans with one of the P2P platform operators – Funding Societies (“FS”).
What is P2P Lending Platform? Putting it simple, P2P lending systems, performing as intermediaries, facilitate funding between lenders and borrowers. Lenders, in this scenario, make reference to retail investors as if you and me. For traders, P2P lending can present itself alternatively asset class on their portfolios with low least investment requirement and potentially high earnings. Borrowers, on the other hands, are mainly small and medium-sized companies (“SME”) seeking money for business needs.
Compared to traditional banking system, the P2P lending platforms offer quicker loan financing and acceptance process, allowing business to capitalise on short-term business opportunities. Furthermore, some of these SME may not have the security or credit standing essential for the eligibility of a bank loan. Currently, there are more than 10 such systems on the market.
Under the Securities and Futures Act, platforms that raise funds from the public through P2P financing are required to keep Capital Market Services licenses by the MAS. Business Term Loan: Unsecured loan products that are mainly requested by SME to expand their businesses, as well for the goal of project financing.
Tenure can range between 1 to 12 months. Invoice …