MoolahSense Crowdfunding Platform - Review for Investors

MoolahSense Crowdfunding Platform - Review for Investors

The lowest fee P2P/Crowdfunding platform for investing in Singapore SME business loans

Editor's Rating

4.5/5.0

Good for

  • Investors seeking P2P investing platform with low fees and minimum investment requirements

Bad for

  • Investors that prefer the P2P investing platform with the strongest track record

MoolahSense offers investors an excellent P2P/Crowdfunding platform to invest in Singapore SMEs while pursuing great returns (up to 12 - 24%). MoolahSense's investment platform is especially accessible to any interested investors as it offers low fees (1% of repayment) and low minimum investment (S$100). Additionally, it is one of two P2P/Crowdfunding platforms in Singapore that offers secured business loans, which are generally safer investments compared to unsecured business loans.

Summary of MoolahSense Investment Platform
Low investor service fee (1% of total repayments)
Low minimum investment (S$100)
Competitive returns (up to 12 - 24%)
Low default rate (3.48%)

Table of Contents

What Makes MoolahSense Stand Out to Investors

MoolahSense is one of the best P2P/Crowdfunding platforms in Singapore. It boasts competitive returns (up to 12 - 24%) from unsecured and secured SME loans and invoice financing (up to 12%). Additionally, the platform's investor service fee (1% of total repayments) tends to be lower than other P2P/Crowdfunding investment platforms. For example, other platforms tend to charge 15-20% of interest earned, which becomes meaningfully larger than 1% of total repayments for investments for investments of six months or longer.

Column chart comparing the Investor Service Fee (as a percentage of investment)  given a 15% annualized rate of return. MoolahSense's fee is cheaper than Funding Societies' fee with durations of 6 months year or longer

MoolahSense is also the most accessible platform, as it requires only S$100 to begin investing, versus S$1,000 at Funding Societies. Additionally, MoolahSense offers the largest SME loan principals through P2P/Crowdfunding platforms of more than S$5 million, which presents larger investment opportunities than its competitors.

Graph showing the Minimum investment per financing campaign requirement of five major P2P platforms in Singapore. Funding Societies and MoolahSense have the lowest required investment per campaign

While it doesn't match Funding Societies' track record of 2,000+ completed deals totalling more than S$105 million, MoolahSense has a respectable 500+ completed loans totalling more than S$50 million, in Singapore alone, making it a formidable competitor. It's default rate (3.48%) is solid, but not quite as impressive as Funding Societies'(1.4%), and might indicate a higher risk/reward profile. Finally, for investments yielding less than 15% with durations shorter than 6 months, Funding Societies' fee of 18% of interest earned is lower than MoolahSense's fee of 1% of all repayments received.

Investment Opportunities at MoolahSense

MoolahSense offers short to mid-term investment opportunities in the form of unsecured and secured business loans (durations of 6 - 24 months and 3 - 24 months respectively) and invoice financing (15 - 90 days). While both business loans require one personal guarantor, secured business loans also require SMEs to pledge collateral, an asset that could be sold in case of default to minimise the risk for investors. MoolahSense is the only P2P/Crowdfunding platform to offer these loans. Unsecured loans are riskier, as they do not require collateral from borrowers. However, the increased risk increases their potential return: unsecured loans can yield up to 24% annually versus up to 12% annually for secured loans.

While unsecured, invoice financing also provides a high likelihood of repayment because the borrower expects to receive an inflow of cash generated from the invoice from their customer. MoolahSense states that their invoice financing investments return up to 12% annually.

Interest rates are either determined by auctions, in which investors bid on opportunities based on interest rates that they would be willing to receive, or set by borrowers (pending willing lenders). Deals tend to be accepted quickly, so MoolahSense offers Auto Allocation, a service that automatically invests in deals based on an investor's pre-set preferences.

Secured Business LoansUnsecured Business LoansInvoice Financing
Annual Returns8 - 18%up to 24%up to 12%
Investor Service Fees1% of all repayments1% of all repayments1% of all repayments
Minimum Investment per CampaignS$100S$100S$100
Minimum Initial InvestmentS$100S$100S$100
Loan Duration6 months - 2 years3 months - 2 years15 - 90 days

Investor Eligibility Requirements

MoolahSense's requirements for investors are standard among Singapore P2P/Crowdfunding investing platforms. Investors must be Singaporean citizens or permanent resident, at least 18 years old and have a bank account with a local or foreign qualifying full bank in Singapore.

  • At least 18 years old
  • Singapore citizen or permanent resident, foreigner residing in Singapore with a valid employment pass, dependent’s pass or student pass
  • Bank account with local bank or foreign qualifying full bank in Singapore

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