@jonhan thanks for the sharing. I concur with you. Feel that every borrowers should be given a chance even with their short credit history
History does not equate to the future, even listed and government supported companies (E. G hyflux incident) can be wrong.
I did study loans and take note of late repayment and the reasons and attitude of borrower.
I just don't mind put more to support prompt or early repayment. (not that I have much...)
Will take note of your number games
@alistair-black hey man! Revisiting this post - curious to hear from you on the key considerations you had when starting an EU bank account? Does having it provide significant advantages over having just a TransferWise borderless account? (for a Malaysia-based investor)
@tckw93 interesting. how does one invest in the china p2p market? last i heard the investment process for foreigners and non residents is almost impossible unless u are a high net worth investor willing to put in millions
Hey Chee Wai,
I would like to ask if it’s possible to transfer money to and from my broker in the US (Interactive Brokers). I see that some folks have also asked the same question below and would like to know if Instarem has got it enabled. Thanks you!
End of Apr status snapshot
FS MY - default dropped to SGD 286.09 (MYR 829.66). -> IMPROVING
FS SG - first default. Amount is SGD 206.68 from 2 borrowers. -> WORSENING
One borrower - 5665 has multiple notes and so far, 1 note has been listed as 'Default'. 3 other notes currently being classified as 'Miss'. Highly likely will turn into 'Default' and push the default sum to SGD 414.93.
Total accumulated profit is SGD 484 after 14 months. If default sum reach SGD 414, almost all profit will be gone.
Thank you @tckw93 and @Cassandra-Tho for the contributions! :) Have included your factors within the list;
Compiling the following table to gather & continue populating everyone's views on factors important to them:
Factors in choosing a P2P platform?
Yay-sayers (it's important)
Nay-sayers (it's not important)
Other sub-factors to think about, relevant quotes from others in the community
Yield / Returns
What are my absolute returns / annualised portfolio returns / returns after deducting fees and taxes/ internal rate of return / returns after fees and tax have been deducted? @tckw93: "I think this much is obvious. Everyone is trying to get the best investment yield for their investment right?"
Opportunities & extent of diversification
What's the minimum investment required for each loan? Can I successfully spread risk across businesses and industries, vis-a-vis my total portfolio?
Length of loan tenors, @tckw93: "Not just ease of withdrawal but also the speed of it."
Minimum funding amount / barrier to entry / ease in trialing a platform
What's the minimum investment required to start an account? Am I able to test it out with the platform in small amounts before deciding my next steps?
Due diligence conducted by platform
How does the platform assess borrowers? Is the platform registered with and regulated by government bodies (MAS/SC/OJK), along with its process and policies? @tckw93: "No one wants to see their investment defaults and due diligence plays a vital role in evaluating the ability of lenders to pay back. But then it's part of the risk they're taking when investing in P2P."
Competency of management team
@antoniomc27: "(e.g: proven track record, proactive on recovering loans)"
Transparency / opportunities to interact with team
@antoniomc27: "Is the customer support reachable? Do they have a blog/forum, do they publish regular updates of their notes/projects?"
Potential cash drag
Trust in platform
@antoniomc27: "E.g: if I have $1000 in a platform with weak track record and which is not financially stable, I am taking an unnecessary risk. If those same $1000 are in a good one, I will not necessarily panic."
Platform's revenue & profit
@Cassandra-Tho: "In reality, platforms are also (for-profit) companies, so if they are not able to generate enough income, their long term viability may ultimately be impacted."
Platform's cash on hand
What's the platform's cash position like and how are they spending? Are they well-funded / set for more funding?
Reviews & experiences of other investors
Crisis / default management
Skin in the game
Alignment with personal portfolio & your existing diversification strategies
Let's crowdsource ideas and expand our understanding together - veterans & beginners alike! 💪
A call out to all P2P investors to suggest more factors we should add to this table, or let us know your top 3 factors so we can add your vote to the table. Pipe your views in too!
Xue suggested that only about 100 platforms would survive under the new regulatory environment, out of the 1,021 P2P lending platforms still operating at the end of March.
I'm surprised that 100 are expected to survive/be free of regulatory problems. Monkey see, monkey do, frauds were so commonplace, wouldn't all of them be tempted to all conduct it for growth back then?
@josephkoh Thanks. Sorry I don't know anyone. I suspect some of China business models like Alibaba have little intermediates because they have a marketplace for transaction between business to business or business to consumer.
@arigatomon Thanks for your question. It is not a regulatory restriction for us to advance up to 80% of the invoice value. It is sort of an industry benchmark and it is generally due to the rationale shared below:
While we want to aid the company's cash flow, we would avoid giving an advance of the profits to the company. It's not to say that the profit margin is always 20%, but it is just a relative benchmark as not many companies have net margins much higher than 20%. Thus, the money advanced by FS for invoices submitted will help to cover costs of importing / production / provision of service. The company can take its profit once the invoice is settled by the debtor (ie the remaining 20% excluding interest and fees)
There may also be disputes, warranties or credit notes on the invoices. For example, in a batch of good delivered, there may be 5% faulty or failed QC on the buyers' end and they typically will get a credit note which will be offset from future invoices. By not giving the full advance on the invoice value, there is a 20% buffer against such refunds or credit notes.
The financing advanced to companies may still differ from 80%, depending on other risk factors such as the strength of debtors, whether if trade credit insurance was applicable, payment trend and records.
Hey there @wjchay!
Thanks for raising this! We'd definitely create it, once we have more discussion topics on P2P lending in Vietnam; feel free to start a topic within Investing in Debt Crowdfunding - P2P Financing and we'll pop it over once the sub-category is up!
Are you looking to explore cross-country investing with Vietnamese P2P platforms?
Here're some related threads:
@chekmeng Simply speaking, you have fixed the exchange rate at the rate you sold the Euro for. Any amount you received from the overseas P2P is in Euro, and would be used to repay the Euro that you borrowed earlier.
No matter how much the exchange rate fluctuate after you sold the Euro does not matter, since your investment in P2P in Euro would be used to repay the Euro you borrowed.
@adrian-sim-0 said in Money Transfer platforms:
Maybe try considering MoneyMatch
Read on LYN that they have preferential rates for folks who provide free publicity for them?
But MM is like a black box.
Just because I post the comparison, they offer me the discount code
You as a forummer got it. But not everybody. Did you ask or they offer you ? Is it the same code or you have better discount than other forummers ?
I can’t see any set policy and rule in the website.
Not saying they cannot do it. It’s their way of doing business. Just that I felt those who missed out the code will feel unfair.
@Adrian-Sim-0 did you get any preferential rates?