Funding Societies Effectively Guaranteed Returns?

[AhSlack92]

As above, received this email and wonder if there's anything we should look out for hmm.. At one glance, it seems like a fixed deposit kind of thing with principal guaranteed..but the word 'effectively' there make it seems not so simple haha..

Any advise on this, worth investing?

 

[Mephist0pheLes]

Sound like a shitty deal.

They take your money, lend it to others and take a huge cut of the interest.

If the loan is not filled, FS capital will default and all your money gone.

 

[Shiny Things]

"Effectively guaranteed" does not mean the same thing as "guaranteed". It means the same thing as "not guaranteed".

 

[JuniorLion]

Who can guarantee you 8% p.a. interest in this current climate?

Well, good luck.

 

[BBCWatcher]

"Effectively guaranteed" does not mean the same thing as "guaranteed". It means the same thing as "not guaranteed".

Right, and it's not as if "guaranteed" is necessarily wonderful. Guaranteed by whom?

Anyway, the point is that this offer is not guaranteed, which is a grade below guaranteed by Tinkerbell.

Funding Societies is a young and small startup, and FS Capital is its corporate sibling. Practically anybody can buy a shingle from ACRA, and as far as I can tell this enterprise and its endeavors are completely unregulated -- not that that would be much in Singapore either.

Run away, please.

 

[RMCWMR]

Right, and it's not as if "guaranteed" is necessarily wonderful. Guaranteed by whom?

Anyway, the point is that this offer is not guaranteed, which is a grade below guaranteed by Tinkerbell.

Funding Societies is a young and small startup, and FS Capital is its corporate sibling. Practically anybody can buy a shingle from ACRA, and as far as I can tell this enterprise and its endeavors are completely unregulated -- not that that would be much in Singapore either.

Run away, please.

They already put a disclaimer.
Please note that while FS Capital Pte Ltd guarantees the return of all of the principal sum invested in and the rate of return in the Guaranteed Returns Investment, there is no assurance that FS Capital Pte Ltd will be able to fulfil its obligations under such guarantee.

Do you own due d.

 

[Small Lee Fly Dagger]

They already put a disclaimer.
Please note that while FS Capital Pte Ltd guarantees the return of all of the principal sum invested in and the rate of return in the Guaranteed Returns Investment, there is no assurance that FS Capital Pte Ltd will be able to fulfil its obligations under such guarantee.

Do you own due d.

aka "no guarantee that we can guarantee"

lol.

 

[iduncheckmail]

when it sounds too good to be true it usually is .

 

[Shiny Things]

They already put a disclaimer.
Please note that while FS Capital Pte Ltd guarantees the return of all of the principal sum invested in and the rate of return in the Guaranteed Returns Investment, there is no assurance that FS Capital Pte Ltd will be able to fulfil its obligations under such guarantee.

That is friggin' hilarious.

"We guarantee that we will return all of your principal and interest, unless we don't."

 

[Geeezz]

take money frm investors to lend to sme. take a cut frm int. if default just close dwn sistar company. no risk at all, nice investment fr them of cuz

 

[jclayton]

Yes they will take the money to invest in growing companies, depends on how well they manage to conduct their due diligence which in this case revolves a lot on liquidity ratios.
Actually what kind of returns to you guys expect from an investment like that?

 

[chienwei]

i view this as less risky than investing in individual loans.

so there is lower interest for investors.

Sent from Xiaomi REDMI NOTE 5 using GAGT

 

[henrylbh]

You lend money to money lender and let them do what they want?

 

[BBCWatcher]

i view this as less risky than investing in individual loans.

You would view this vehicle as less risky than loaning money to the government? That’s what a government bond is, one loan to a single party.

With this vehicle we have no idea who the loan recipients are, the terms of those loans, or even whether the loans are made. It’s a black box, or hole. If you’re making a direct loan to your great uncle, you have tremendously more information. That counts, a lot. How about if your great uncle is the Prime Minister? Still riskier than the black box?

 

[Shion]

They already put a disclaimer.
Please note that while FS Capital Pte Ltd guarantees the return of all of the principal sum invested in and the rate of return in the Guaranteed Returns Investment, there is no assurance that FS Capital Pte Ltd will be able to fulfil its obligations under such guarantee.

Do you own due d.

This disclaimer should be good enough to deter most people from investing into this...Outcome could be worse than endowments

 

[Maeda_Toshiie]

This disclaimer should be good enough to deter most people from investing into this...Outcome could be worse than endowments

Most people
1. don't read the fine print
2. don't understand the fine print
3. choose to ignore the fine print because the returns look good.

 

[ydnar1]

I invest in funding societies loans, but I dont feel good with this FS capital "guaranteed loan". The FSC guarantee depends on the credit strength of FSC which they do not provide in details.

I will be asking FS if they are going to publish FSC's financial to be on their website regularly.


Invest some small amount at your own risk. Assume it is a unsecured loan ba.

 

[ydnar1]

Drop FS a text and they are writing up on the finanicial of FSC.

Guessed a lot had asked them about this.

The founders are FS is the guarantor of FSC. So if NPL of FSC is high and defaults, FS is a goner. By then, let's see how the trustee structure works to protect our loan...

I am invested majority in collateralized loan.

 

[sportspree101]

Give them a few years to close shop ba

 

[Funding Societies]

Hi everyone, thank you and appreciate everybody’s view on our Guaranteed Returns Investment (GRI) product. We recently noticed this thread and would like to clear the doubts and concerns around this product for the members of the forum.

This product was primarily introduced to provide our platform investors with a more secure product, thereby creating a balanced portfolio consisting of unsecured and guaranteed financing opportunities. We had also in parallel launched Property-backed secured financing. Coming back to the GRI product, some of its features are:

- Returns of 3-5% per annum
- Short tenor between 1 and 12 months
- Monthly repayments
- Our guarantee on capital and interest if the SME defaults

To further elaborate, the guarantee helps in situations where the underlying issuer defaults. In such a scenario, repayment is guaranteed. For this specific purpose, we keep aside a buffer of 20% of the issued funds. The reason we set the GRI at mid-single digit returns is primarily because there is an additional guarantee from us beyond the recourse against the SME, which mitigates the borrower’s default risk completely. As a two-sided platform we ensure that while we want to serve the SMEs who directly contribute towards the growth of the economy, we are also equally cognizant of the interests of the investors’ investments on the platform.

As a financial institution, there is a certain sensitivity associated with sharing our financial information or the financials from our sister companies publicly. We understand that it's helpful to investors as part of your due diligence. We may decide to share more information in the future as the overall portfolio grows. We seek your understanding in this. However, irrespective of this, investors have a choice to opt out or not participate in such financing opportunities, if it’s not within your risk appetite.

Lastly to clarify, the founders of Funding Societies do not provide Personal Guarantee to the platform's financing opportunities.