Local Crowdfunding investment in SME

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#71
What's the future for crowdfunding.

I read that its some form of publicity, there's even people presenting cheques to the successful raiser. You gain publicity that you get on news. The platform will gain too, attracting more to raise funds through it. Quality borrowers, at least the first few, will be attracted by this publicity. It will start to attract the lousy ones, as its means i can borrow and not return. Simply declare bankrupt and out of business. As an unsecured lender, def you are placed last in the pecking order in winding up.

With the govt asking FIs to check whether investors are capable enough to invest in complicated products etc, is crowdfunding a lot more less complicated in this way now? Its funny, my dad wanted to invest in the SG retail bonds, but the bank wrote a letter to say he is not suitable as he doesn't have the competency level.

No matter what, regulations got to catch up with crowdfunding sooner or later. Interest rates have to increase to match the risk levels/compliance cost. But does it make sense to borrow at even much higher cost then?
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#71
What's the future for crowdfunding.

I read that its some form of publicity, there's even people presenting cheques to the successful raiser. You gain publicity that you get on news. The platform will gain too, attracting more to raise funds through it. Quality borrowers, at least the first few, will be attracted by this publicity. It will start to attract the lousy ones, as its means i can borrow and not return. Simply declare bankrupt and out of business. As an unsecured lender, def you are placed last in the pecking order in winding up.

With the govt asking FIs to check whether investors are capable enough to invest in complicated products etc, is crowdfunding a lot more less complicated in this way now? Its funny, my dad wanted to invest in the SG retail bonds, but the bank wrote a letter to say he is not suitable as he doesn't have the competency level.

No matter what, regulations got to catch up with crowdfunding sooner or later. Interest rates have to increase to match the risk levels/compliance cost. But does it make sense to borrow at even much higher cost then?
Reply
#72
(28-04-2016, 12:30 PM)alex Wrote: What's the future for crowdfunding.

I read that its some form of publicity, there's even people presenting cheques to the successful raiser. You gain publicity that you get on news. The platform will gain too, attracting more to raise funds through it. Quality borrowers, at least the first few, will be attracted by this publicity. It will start to attract the lousy ones, as its means i can borrow and not return. Simply declare bankrupt and out of business. As an unsecured lender, def you are placed last in the pecking order in winding up.  

With the govt asking FIs to check whether investors are capable enough to invest in complicated products etc, is crowdfunding a lot more less complicated in this way now?  Its funny, my dad wanted to invest in the SG retail bonds, but the bank wrote a letter to say he is not suitable as he doesn't have the competency level.

No matter what, regulations got to catch up with crowdfunding sooner or later. Interest rates have to increase to match the risk levels/compliance cost. But does it make sense to borrow at even much higher cost then?

FYI, only AI (Accredited Investors) are allowed to participate in crowdfunding, the same as retail bond.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#72
(28-04-2016, 12:30 PM)alex Wrote: What's the future for crowdfunding.

I read that its some form of publicity, there's even people presenting cheques to the successful raiser. You gain publicity that you get on news. The platform will gain too, attracting more to raise funds through it. Quality borrowers, at least the first few, will be attracted by this publicity. It will start to attract the lousy ones, as its means i can borrow and not return. Simply declare bankrupt and out of business. As an unsecured lender, def you are placed last in the pecking order in winding up.  

With the govt asking FIs to check whether investors are capable enough to invest in complicated products etc, is crowdfunding a lot more less complicated in this way now?  Its funny, my dad wanted to invest in the SG retail bonds, but the bank wrote a letter to say he is not suitable as he doesn't have the competency level.

No matter what, regulations got to catch up with crowdfunding sooner or later. Interest rates have to increase to match the risk levels/compliance cost. But does it make sense to borrow at even much higher cost then?

FYI, only AI (Accredited Investors) are allowed to participate in crowdfunding, the same as retail bond.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#73
More update on local SME crowdfunding...

Four companies raise $1 million via equity crowd-funding platform FundedHere
...
FTMSGlobal, an established Singapore-based private education operator, is one of the four companies that have raised capital via FundedHere. The company, which teaches ACCA and CFA classes, first started business back in 1986. It now has a presence in countries like Mongolia and Cambodia and Hong Kong.

The other three companies that have raised money via FundedHere are start-ups. The first is Chloros Solutions, which offers services for environmental sustainability design, engineering, procurement and construction. FTMSGlobal and Chloros both obtained short-term crowd-lending loans.

By contrast, the other two start-ups, obtained seed capital. “For companies like ours, this is an alternative to venture capital. I believe the ease of using FundedHere and the speed at which the funds come in will encourage more startups to use the platform,” says Daniel Tan, CEO of DeNova Sciences Pte Ltd, one of the two start-ups.
...
http://www.theedgemarkets.com/sg/article...fundedhere
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#73
More update on local SME crowdfunding...

Four companies raise $1 million via equity crowd-funding platform FundedHere
...
FTMSGlobal, an established Singapore-based private education operator, is one of the four companies that have raised capital via FundedHere. The company, which teaches ACCA and CFA classes, first started business back in 1986. It now has a presence in countries like Mongolia and Cambodia and Hong Kong.

The other three companies that have raised money via FundedHere are start-ups. The first is Chloros Solutions, which offers services for environmental sustainability design, engineering, procurement and construction. FTMSGlobal and Chloros both obtained short-term crowd-lending loans.

By contrast, the other two start-ups, obtained seed capital. “For companies like ours, this is an alternative to venture capital. I believe the ease of using FundedHere and the speed at which the funds come in will encourage more startups to use the platform,” says Daniel Tan, CEO of DeNova Sciences Pte Ltd, one of the two start-ups.
...
http://www.theedgemarkets.com/sg/article...fundedhere
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#74
It is not directly relevant, but it might happen to local crowdfunding sites. The vetting is done by the site, and conflict-of-interest, should always be a concern of investors...

UK peer-to-peer lenders talk up regulation after Lending Club ruckus
11 May 2016 06:36
[LONDON] The online US lender Lending Club would be in breach of financial rules had it knowingly sold on loans in Britain that an investor did not want, industry and legal experts said on Tuesday.

The biggest American "marketplace lender", which sells consumer and small business loans on to investors, stunned shareholders on Monday with news that an internal probe had shown how loans that it sold on had failed to comply with an investor's criteria.

The company's founder and chief executive Renaud Laplanche resigned, and three other senior managers were fired or quit as Lending Club shares tumbled.

Britain has one of the biggest peer-to-peer or P2P lending sectors in Europe, with online platforms such as Funding Circle and Ratesetter bringing borrowers and lenders together.
...
REUTERS

Source: Business Times Breaking News
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#74
It is not directly relevant, but it might happen to local crowdfunding sites. The vetting is done by the site, and conflict-of-interest, should always be a concern of investors...

UK peer-to-peer lenders talk up regulation after Lending Club ruckus
11 May 2016 06:36
[LONDON] The online US lender Lending Club would be in breach of financial rules had it knowingly sold on loans in Britain that an investor did not want, industry and legal experts said on Tuesday.

The biggest American "marketplace lender", which sells consumer and small business loans on to investors, stunned shareholders on Monday with news that an internal probe had shown how loans that it sold on had failed to comply with an investor's criteria.

The company's founder and chief executive Renaud Laplanche resigned, and three other senior managers were fired or quit as Lending Club shares tumbled.

Britain has one of the biggest peer-to-peer or P2P lending sectors in Europe, with online platforms such as Funding Circle and Ratesetter bringing borrowers and lenders together.
...
REUTERS

Source: Business Times Breaking News
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#75
eventually it will become heavy regulated just like a mini-bank.... SME loans... Tongue
else every founder/director..etc wants to dip their hands into the pot....
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
#75
eventually it will become heavy regulated just like a mini-bank.... SME loans... Tongue
else every founder/director..etc wants to dip their hands into the pot....
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
#76
(11-05-2016, 09:58 AM)brattzz Wrote: eventually it will become heavy regulated just like a mini-bank.... SME loans... Tongue
else every founder/director..etc wants to dip their hands into the pot....

May be there is a room for scaled-down version of Moody, Fitch, or S&P, which is suitable for mini-credit?  Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#76
(11-05-2016, 09:58 AM)brattzz Wrote: eventually it will become heavy regulated just like a mini-bank.... SME loans... Tongue
else every founder/director..etc wants to dip their hands into the pot....

May be there is a room for scaled-down version of Moody, Fitch, or S&P, which is suitable for mini-credit?  Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#77
Key headache is how to regulate taking money from retail. If restrict they say paternalistic interventions. If don't restrict and blow up they say govt don't protect. Always got these type of catch 22 considerations for policy making. Ditto for CPF.

It's easy to comment and criticize, not so easy when one is in the pitch with the ball. And even harder to educate the public on the different considerations for the decision making. That's why it is easy to degrade politics to one-liners headlines slogan.
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
#77
Key headache is how to regulate taking money from retail. If restrict they say paternalistic interventions. If don't restrict and blow up they say govt don't protect. Always got these type of catch 22 considerations for policy making. Ditto for CPF.

It's easy to comment and criticize, not so easy when one is in the pitch with the ball. And even harder to educate the public on the different considerations for the decision making. That's why it is easy to degrade politics to one-liners headlines slogan.
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
#78
Any legal finance company owner/partner dealing with business loan like to share thoughts on crowdfunding changing the game?
Reply
#78
Any legal finance company owner/partner dealing with business loan like to share thoughts on crowdfunding changing the game?
Reply
#79
we just cannot trust OTHER people with OUR MONEY! TongueBig Grin

learn it or lose it! 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
#79
we just cannot trust OTHER people with OUR MONEY! TongueBig Grin

learn it or lose it! 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
#80
(12-05-2016, 08:49 AM)brattzz Wrote: we just cannot trust OTHER people with OUR MONEY! TongueBig Grin

learn it or lose it! Tongue

but that's precisely what you do every time you buy a share, a bond or even just deposit your money into your bank account .... Rolleyes
Reply
#80
(12-05-2016, 08:49 AM)brattzz Wrote: we just cannot trust OTHER people with OUR MONEY! TongueBig Grin

learn it or lose it! Tongue

but that's precisely what you do every time you buy a share, a bond or even just deposit your money into your bank account .... Rolleyes
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