MoolahSense is the first peer-to-business lending platform in Singapore. It offers an alternative source of funding for established SMEs, and at the same time provides attractive returns for investors.
How it works?
- SME Borrower registers at MoolahSense platform with its funding needs and the maximum interest rate it is willing to pay.
- Once accepted by MoolahSense, the Borrower will be able to begin its fundraising campaign. Basic business and financial information will be provided, along with the DP Credit Rating of the Borrower to potential investors. The Borrower will also conduct an information session to engage potential investors.
- Investors can submit their offer amount with a proposed interested rate.
- The Borrower accepts the offers when the target amount is reached. A reverse auction will be conducted to determine the interest rate. Funds will then be disbursed to the Borrower.
- Every month, MoolahSense will collect the repayments from the Borrower and transfers the amounts to the Investor accounts. If there is late repayment, MoolahSense will remind the Borrower or engage professional debt collectors to pursue outstanding debts.
- Information session are useful to assess the character of the Borrower.
- Forum allows interaction between potential investors and Borrower.
- MoolahSense has no “skin in the game”. Its revenue model is a 3% fee upon successful campaign, thus it does not share the default risk faced by investors.
- Financial indicators are very basic.