P2P Lending Review Funding Societies
Funding Societies Singapore is also another P2P website that I have started with. I started with depositing $1k in the Singapore branch in Jul 2017 and have made small top ups since then until Jun 2019 to reach a total of $4.5k deposit.
Registration: As it has been quite some time since i registered with them, I have forgot the registration process. But I think I did not have any issues with any of them when i signed up with them.
Investing: For investing in the loans, all 3 are easy and there is an options to set up auto-invest bot for each of them which are quite intuitive to use. One of the main draw was that the minimum amount to invest per loan is $20 which allowed large diversification of loans so that not a single loan would pull down the profit significantly on a small account.
Deposit: All deposits made were relatively easy. Just deposit the money and make a deposit notification on the website.
UI: The UI is easy to use. However, one thing I did not like is how they represented the reports. especially the net income and performance. The reports does not take into account defaulted loan. Even when loans have been defaulted, they do not include subtract it from the net income. This result in a higher than actual performance reflect in the portfolio.
Returns: ~$300 if all principal returns by October 2021 on a $4500 investment.
I might be unlucky as most of my loans are $20 in principal and only a few are of $200. Out of the few $200, 2 of them went into default which resulted in a large loss on my account. Probably if this 2 loans were also $20, the profit might not be that bad, but it still is not as good as what I would like on a risky investment.
Based on funding societies website, I still have roughly ~$900 which will all be fully repaid by October 2021. So I might provide another update then to see if all $900 were able to be recovered. Hopefully, I will be able to recover them fully which would translate into a total profit of $300 over 4 years with $4500 invested total invested. The time weighted returns would translate into roughly ~3% p.a (rough calculation off the back of my head).
Withdrawal: Withdrawal free and very easy to request. Minimum amount to withdraw is $20. It takes a few days to be in my bank account. I have made over 10+ withdrawal with amount varying from $20 to $1000 without any issues.
Referral link: Use this link to enjoy $20 cashback if you make a total investment of S$200 within 30 days of signing up. I will also receive $20 from the referral link.
There were some new offerings made in the recent years in funding societies such as guaranteed backed product which were of lower risk and lower returns which I did not try. Overall, I might still continue with this platform for their guarantee product backing if I had spare cash available for long term lockups because the overall experience with this sites is still not bad. Currently though, there are better investment/trading opportunities which I have yet to max out so it will be some time before I will reconsider using this platform again.