Local Crowdfunding investment in SME

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#61
biz is like that, sometimes u win, sometimes u lose... so if u wanna loan money to biz, you must take the risk too.. Smile

is the 13.5% yield worth the risk (total loss??) it's all up to u! Big Grin see other thread for WK's investment properties! Tongue
it's ur money leh! Tongue

These platforms are just being loud and trying to make commissions out of total loan amount, that's all... lenders go in with their EYE WIDE OPEN!!Tongue

*not vested and won't be unless MAS regulates it to become the biz owner's liability for these P2P loans*

no point throwing away money, no matter how little.. it's just wasteful.... Tongue
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#61
biz is like that, sometimes u win, sometimes u lose... so if u wanna loan money to biz, you must take the risk too.. Smile

is the 13.5% yield worth the risk (total loss??) it's all up to u! Big Grin see other thread for WK's investment properties! Tongue
it's ur money leh! Tongue

These platforms are just being loud and trying to make commissions out of total loan amount, that's all... lenders go in with their EYE WIDE OPEN!!Tongue

*not vested and won't be unless MAS regulates it to become the biz owner's liability for these P2P loans*

no point throwing away money, no matter how little.. it's just wasteful.... Tongue
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#62
http://www.creditbureau.com.sg/about-cbs

The banks hv this as a deterent against intentional defaults.

Sg needs a similar budget version of such a database. One that does not involve lawyer fees to lodge a notice of default.
Shd such a budget database be available, then micro lending is substantially safer. Anyone keen to do this as a start up?
Reply
#62
http://www.creditbureau.com.sg/about-cbs

The banks hv this as a deterent against intentional defaults.

Sg needs a similar budget version of such a database. One that does not involve lawyer fees to lodge a notice of default.
Shd such a budget database be available, then micro lending is substantially safer. Anyone keen to do this as a start up?
Reply
#63
(23-03-2016, 10:13 PM)weijian Wrote:
(23-03-2016, 11:00 AM)CityFarmer Wrote: I am looking at the following aspects of the crowdfunding

It offers an alternative of start-up funding, to both fund raiser, and fund providers. Fund raiser, might benefit from freer market with more competition, rather than within a closed connected group, and probably shorter lead-time. Fund providers might benefit from lower barrier to participate, and ease of diversification. It is beneficial to smaller PE fund owners.

They say that Venture Capital look for the person to invest in, not the idea - because ideas can easily be copied, while the character cannot. As such, I tend to think that a successful unicorn founder would be above average. But above average founders don't need to look for average financiers, rather they will use their time wisely to seek out above average financiers for funds and tap their expertise. This most probably means that the average crowd funder would be left out of the cream of the crop. But such startup investing is only profitable on aggregate because it depends on a unicorn's multi-bagger gains to compensate for the rest of the flops' 100% loss.

The big boys with their big names will find the 'cream of the crop' founders at their doors, giving the sales pitch. While the smaller PE funds will joust with the retail mass for the average founders, it is never a good thing - but that could be just a by-product of this ultra long low interest rate environment that we are in, when we look back on hindsight in future.

IMHO its a pretty unregulated funding that could be probably classsified as a form of "shadow banking"

An like bitcoin, it is easily open to abuse as a "money laundering" platform/
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#63
(23-03-2016, 10:13 PM)weijian Wrote:
(23-03-2016, 11:00 AM)CityFarmer Wrote: I am looking at the following aspects of the crowdfunding

It offers an alternative of start-up funding, to both fund raiser, and fund providers. Fund raiser, might benefit from freer market with more competition, rather than within a closed connected group, and probably shorter lead-time. Fund providers might benefit from lower barrier to participate, and ease of diversification. It is beneficial to smaller PE fund owners.

They say that Venture Capital look for the person to invest in, not the idea - because ideas can easily be copied, while the character cannot. As such, I tend to think that a successful unicorn founder would be above average. But above average founders don't need to look for average financiers, rather they will use their time wisely to seek out above average financiers for funds and tap their expertise. This most probably means that the average crowd funder would be left out of the cream of the crop. But such startup investing is only profitable on aggregate because it depends on a unicorn's multi-bagger gains to compensate for the rest of the flops' 100% loss.

The big boys with their big names will find the 'cream of the crop' founders at their doors, giving the sales pitch. While the smaller PE funds will joust with the retail mass for the average founders, it is never a good thing - but that could be just a by-product of this ultra long low interest rate environment that we are in, when we look back on hindsight in future.

IMHO its a pretty unregulated funding that could be probably classsified as a form of "shadow banking"

An like bitcoin, it is easily open to abuse as a "money laundering" platform/
Virtual currencies are worth virtually nothing.
http://thebluefund.blogspot.com
Reply
#64
http://letscrowdsmarter.com/p2p-portfoli...16-update/

Interesting portfolio. Will be keen to follow up 12 months later.

Unlike Bitcoin that IMHO has no fundamental logic (see my posts in that thread) except scarcity perception, there are fundamental logic in P2P if done correctly though I think the risks are very high as main concern is return of money. For example I would be concern if entities with access to capital markets suddenly need this high cost channel
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#64
http://letscrowdsmarter.com/p2p-portfoli...16-update/

Interesting portfolio. Will be keen to follow up 12 months later.

Unlike Bitcoin that IMHO has no fundamental logic (see my posts in that thread) except scarcity perception, there are fundamental logic in P2P if done correctly though I think the risks are very high as main concern is return of money. For example I would be concern if entities with access to capital markets suddenly need this high cost channel
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
#65
(25-03-2016, 05:14 PM)CY09 Wrote: To me, the probable reason is Epicentre has lost bank's backing and is relying on non conventional means to sustain/expand. IMO, i won't be surprised if other listed entities start tapping this segment, I am eyeing Ezra, Ezion and rickermers as potential candidates.

I am highly doubt on the P2P is feasible platform for those companies, due to simply the size of the funding needed. Conventional funding means still more feasible for those companies, IMO.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#65
(25-03-2016, 05:14 PM)CY09 Wrote: To me, the probable reason is Epicentre has lost bank's backing and is relying on non conventional means to sustain/expand. IMO, i won't be surprised if other listed entities start tapping this segment, I am eyeing Ezra, Ezion and rickermers as potential candidates.

I am highly doubt on the P2P is feasible platform for those companies, due to simply the size of the funding needed. Conventional funding means still more feasible for those companies, IMO.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#66
http://letscrowdsmarter.com/another-default-s-travel/

Another default has occurred on p2p loans. March has been a rather bad month for p2p repayment. I too have an issuer who was late in their repayment.

Similarly, there were other p2p loans who has not kept to their repayment obligations. One has not repaid the principal amount of its loan on maturity and a few were late on their repayments. This 12 months may become an important phase for p2p as a lot of loans were granted and if there is an increasing/high profile defaults, it will be a hit to this industry's reputation
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#66
http://letscrowdsmarter.com/another-default-s-travel/

Another default has occurred on p2p loans. March has been a rather bad month for p2p repayment. I too have an issuer who was late in their repayment.

Similarly, there were other p2p loans who has not kept to their repayment obligations. One has not repaid the principal amount of its loan on maturity and a few were late on their repayments. This 12 months may become an important phase for p2p as a lot of loans were granted and if there is an increasing/high profile defaults, it will be a hit to this industry's reputation
Reply
#67
(03-03-2016, 06:42 PM)opmi Wrote: Return of money more important than return on money

Hard truth!  Angel Angel Angel
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#67
(03-03-2016, 06:42 PM)opmi Wrote: Return of money more important than return on money

Hard truth!  Angel Angel Angel
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
Reply
#68
S travel bosses are foreigners with zero assets in sg. Crowdfunding usually involve personal guarantees. I am surprised ppl actually accept such personal guarantees.
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#68
S travel bosses are foreigners with zero assets in sg. Crowdfunding usually involve personal guarantees. I am surprised ppl actually accept such personal guarantees.
Reply
#69
(04-03-2016, 01:19 AM)Big Toe Wrote: The metal fabrication company started in 2007 and about 9 years later it requires $150K for raw materials?
They don't have money for raw material? And they cant get a bank loan with better terms?
Even the hawker that sells kopi with prudent cash management will be able to save and raise that amount in 9 years.

Great "common sense" point!
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#69
(04-03-2016, 01:19 AM)Big Toe Wrote: The metal fabrication company started in 2007 and about 9 years later it requires $150K for raw materials?
They don't have money for raw material? And they cant get a bank loan with better terms?
Even the hawker that sells kopi with prudent cash management will be able to save and raise that amount in 9 years.

Great "common sense" point!
Reply
#70
A article which worth a read on crowd-funding.

5 things you need to know before investing in crowdfunding
...
http://www.theedgemarkets.com/sg/article...owdfunding
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#70
A article which worth a read on crowd-funding.

5 things you need to know before investing in crowdfunding
...
http://www.theedgemarkets.com/sg/article...owdfunding
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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