peer to peer lending? moolahsense safe ma?

[Obama486]

those companies who use Moolah sense must be the pretty desperate type

the cost is sooo high... 3% commission and the rates 10%+, its very hard to generate over 10% returns on equity on their own small business...

short term, 12 months after 12 months u are just praying that these small businesses don't default....

but in the long run... on average if 20% or more of them fail and default, a portfolio filled with these loans will be money losing...

the default rate have to be 5% or less to make sense in investing in this area, and I highly doubt the rate would be this low

 

[Obama486]

if I were an investor, my $$ will be on Moolahsense

be the middle man, take 3% cut with no risk

better than 10% on the notes with super high risk

just my personal view, no right no wrong if u pick either side

cheers

 

[eyeburn]

It's still too early to says your investment is a success.

Wait until your loan matures and you manage to got back your principle amount then say.

Many companies can gives interest payment smoothly, but when comes to returning principle capital they refuse to return and then goes bankrupt.

If you give someone $1k upfront, it's easy for them to return $11 per month, until they spend all your money and start doing disappearing tricks.

Collected $11 for the first 2 months does not mean anything.

Thats not correct

I get principal+interest back every month

 

[Obama486]

Thats not correct

I get principal+interest back every month

10 more months to go, good luck~!

btw are the notes, secured or unsecured?

 

[MaoZeDuo]

Still dodgy...

 

[djchris]

I registered with them but has not invested any money.

Here's what I see:
1) Shiny Things is right, they are just money lenders who are not regulated. But they've been very upfront about this too by stating it in their website.

2) They are actively looking for businesses to invest in, but are very strict in doing background checks before accepting any businesses who need investors. So there's no businesses in their portal available for investors to invest in. You don't see any Tom, Dick or Harry companies in there. Some of the businesses in the past campaigns are real businesses in the market that you can see, like Seoul Yummy are real businesses that you can see for yourself.

To invest or not, is really up to you. But I can see that they are not like those MLM companies who hype up a lot of things to scam people.

 

[eyeburn]

10 more months to go, good luck~!

btw are the notes, secured or unsecured?

unsecured notes.

 

[Perisher]

I registered with them last year but only log in once and hasn't gone back since. Interesting to hear someone who have invest real money in the businesses. Thank for sharing, hope you get all your $$ back and help a business along the way. =)

 

[lzydata]

Thats not correct

I get principal+interest back every month

Just curious. I read from the website that you sign the loan agreement directly with the borrower company, Moolahsense is just the middleman. How smooth was that process? Any trouble or problems?

 

[eyeburn]

Just curious. I read from the website that you sign the loan agreement directly with the borrower company, Moolahsense is just the middleman. How smooth was that process? Any trouble or problems?

Very smooth. Everything is done online. The process is quite trouble-free My only gripe is they deposit the repayment into your moolahsense acct(not your bank acct). If you withdraw >=$100 to your bank acct, there is no fee. Else, there is a $5 admin fee.

 

[alexchia01]

Thats not correct

I get principal+interest back every month

Collect $11 or $80 of $1k doesn't make much difference.

The amount is so small that they can still take your money to pay you back a little.

Wait until you collected all your principle amount plus interest then says.

 

[Obama486]

It's not safe in any sense. It's not safe in the "am I handing my money over to people who will run off to the Bahamas with it" sense, and it's not safe in the "will I get back my investment in full with interest" sense, because default and loss rates on peer-to-peer loans tend to run pretty high.

These guys are running a loan/deposit operation and they haven't even bothered to get themselves approved by the MAS? They're practically begging to get banhammered in a very big way.

Edit: so on reading MoolahSense's website, it looks like they were explicitly told by the MAS that they're not regulated as a moneylender, nor are they regulated as a deposit-taking institution. This is hilarious. They're running a business that takes money from "investors" and pays them with interest, and lends money to businesses, and it's not a money-lending or a deposit-taking operation? What gigantic loophole did they fall through?

Get your act together, MAS. In the USA, these P2P lenders have had to open actual banks to issue their loans, and they're just as tightly regulated as any other lender or DTI.

people already highlighted all the red flags riao

1) not regulated by MAS
2) no track record

good luck getting your $$ back

I would rather stick to investing in listed securities

 

[eyeburn]

Collect $11 or $80 of $1k doesn't make much difference.

The amount is so small that they can still take your money to pay you back a little.

Wait until you collected all your principle amount plus interest then says.

Yup I know. That's why I only lend small amounts(1k sgd). I'm not betting the bank on this.

 

[wira]

Yeah.
Would be interesting to see what's the loan default rate for such.

 

[Obama486]

Yup I know. That's why I only lend small amounts(1k sgd). I'm not betting the bank on this.

$100 or $1000 also money......

this company doesn't even have a track record... u like that put $$ in, no difference from buying 4D or toto.. u just playing with your luck to get your $$ back

 

[Obama486]

Yeah.
Would be interesting to see what's the loan default rate for such.

u look around you, those people who borrow $$ to open small businesses...

base on statisics, in singapore... less than 5% of new businesses survive after first 5 years

you really wanna lend $$ to these businesses?

 

[Majestic12]

10 more months to go, good luck~!

btw are the notes, secured or unsecured?

You must be trolling to ask if the notes are secured. Lol.

 

[Obama486]

You must be trolling to ask if the notes are secured. Lol.

I think its a valid question

must see if the company got pledge any collateral ma

if banks, they lend out $$ to small businesses, mostly is secured

 

[Majestic12]

Are you a multi millionaire or an institution? If you are retail then forget about having the highest rungs of protection.

I think its a valid question

must see if the company got pledge any collateral ma

if banks, they lend out $$ to small businesses, mostly is secured

 

[Obama486]

Are you a multi millionaire or an institution? If you are retail then forget about having the highest rungs of protection.

what talking you???

retail or institution also can buy SGS what... a good way to lend $$ LOL

retail also got access to higher yield corporate bonds

LOL