Which platforms should I use?
There are a number of crowd-lending platforms in Singapore. For beginners, I would suggest starting with MoolahSense, Capital Match or Funding Societies. These three platforms are mainly involved in the SME lending business. Personally, I use all three platforms actively to search for investment opportunities.
There are also other platforms such as CoAssets (real estate financing) and New Union (secured business lending) but I find that the risks are much harder for beginner investor to appreciate. We’ll revisit these platforms in future posts.
| Platform | Comments |
MoolahSense |
A good platform for beginner investors that are not familiar with doing financial analysis. Minimum investment per loan is $1,000.
Strengths: Provides a clear description of borrower and loan purpose (often with a video interview). The online forum can be very helpful for investors. Weaknesses: Does not provide financial statements and risk assessment of borrower. |
Capital Match |
A good platform for investors familiar with reading financial statements and cash-flow projections. Minimum investment per loan is $1,000.
Strengths: Provides risk assessment for each loan. Repayment history of all loans fully disclosed. Weaknesses: Identities of borrowers are sometimes not disclosed. |
Funding Societies |
Like Capital Match, this platform is suitable for investors familiar with reading financial statements. Minimum investment into escrow account is $1,000 but minimum investment for each loan is $100.
Strengths: Provides escrow account for investors, helping reduce platform risk. Low minimum investment amount helps in loan diversification. Weaknesses: Identities of its borrowers are not disclosed. Its proprietary credit rating model can be difficult to appreciate. |
Source: letcrowdsmarter.com
If you can, I would suggest signing up with all three platforms. This is so that you can get a wider range of loans to choose for. The platforms are all quite intuitive and easy-to-use.
Up next: Beginner’s Guide Step 4 – Cash Management
Further information of each platform below…
MoolahSense
Website: http://www.moolahsense.com/
Introduction video
Tutorial on how to use MoolahSense Platform
Capital Match
Website: http://www.capital-match.com/
Introduction video
Funding Societies
Website: http://www.fundingsocieties.com/
Introduction video
hi,
possible to do a writeup on investing in overseas equity crowdfunding sites? also, wondering if interest earned from such investments in sg and overseas are taxable, since they are with not registered with MAS.
Hi bie18,
To be honest, I haven’t invested much on overseas equity crowdfunding sites. My preference is still crowd-lending where the business is established, interest rate is known and I just need to evaluate my risks. For equity investments, there is too much unknown. If MAS does allow equity crowdfunding here, I’ll take another serious look at this space again and I think there may still be opportunities.
For taxes, I guess you are referring to income tax. It wouldn’t be MAS, but IRAS. Singapore’s income tax are based on locally-sourced income; i.e. income earned in Singapore. Income earned overseas may not be subject to Singapore’s income tax. But that income may be subject to with-holding tax depending on where the income is earned.