Funding Societies (Link) is one of the six peer-to-peer (P2P) financing platforms recognized by Securities Commission Malaysia. I have opened an account with this platform since 2017. Now, I would like to share my experience of using Funding Societies.
Interface
The interface underwent a major revamp and a few minor facelifts after I registered. Honestly, I think this new interface is more user-friendly and informative than the previous version. You can easily get the information you need once you get used to the controls.
Types of loan
The financing is divided into two categories, namely business term financing and invoice factoring.
Business term financing is used as working capital to pay for small asset purchases, capital expenditures or business expansion. It has fixed interest rates, with monthly repayment schedules and a set maturity date.
Invoice factoring is a product where the sellers sell their future receivables or invoices that the sellers issue to their customers to get immediate cash.
The major differences between the two categories are the tenure and the repayment method. Invoice factoring has a shorter duration (normally three to four months) and the repayment will be made in one lump sum at the end of period. For business term financing, the tenure will be longer and the repayment is by monthly installment.
The minimum investment amount in both types of loan is RM 100.
Note Quality
Every loan is known as a note on this platform. In my opinion, the quality of the loans in terms of interest rate and duration is good. The longest duration is 24 months but most notes are shorter. The interest rate is high too, the base rate being 10% per annum. Most loans provide a higher rate than this. The company also put its own fund into every loan available on this platform. As on 1 August 2018, the default rate is 1.09% (Link).
Availability of financing opportunity
The notes available are rather infrequent when compared to the other P2P platform (Fundaztic) that I am using. Furthermore, the notes are frequently fully funded once it is opened for investment. In order to participate in the financing, I resort to set up auto investment bots.
From its statistics page (Link), we can see that majority of the financing has less than 15 investors. This might explain the fast sell-out of the notes.
Auto investment bot
What is this auto bot? It is an auto investment feature. When setting it up, there are a few parameters that we must specify. These are investment type (business term financing or invoice factoring), investment mode (how much money to invest), minimum and maximum investment period (loan tenure), minimum and maximum simple interest rate per annum and industries that you want to invest in.
The bot will invest in notes available on the next day after setting up. We can always disable or delete any auto bot that is obsolete. We still can opt out from a note after reviewing its fact sheet before the note is opened for investment.
Referral reward
Funding Societies has a referral reward programme. If you refer an investor to the platform, both of you will get RM 50 each when each of you invest RM 1000 collectively across investments. Visit its Refer page (Link) for more information.
Verdict
Honestly, I am quite satisfied with this platform. The interest rate is high and the investment process is easy. Besides that, the withdrawal process is fairly simple but we need to wait for a few days before receiving the cash. The only drawback is the fast sell-out of notes and a lower number of notes available. In conclusion, I think that this platform is a great place to diversify into P2P financing.
Referral link
Below is the referral link to Funding Societies. By clicking on this link, I may gain referral rewards from your registration with the platform. If you think I have done a good service in explaining the topic, please click on the link below if you have interest to register. Otherwise, you can always search Funding Societies Malaysia with Google and register yourself.
Funding Societies Malaysia: Link here – If you register and invest through this link, both of us will get RM 30*.
*Terms and conditions apply.
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