If you can’t or don’t prefer to borrow money from a brick-and-mortar bank or a conventional online lender, peer-to-peer (P2P) lending is an alternative well worth exploring. P2P lending works differently from the financing you may additionally have obtained in the past. You are no longer borrowing from a financial institution but as an alternative from an individual or group of people who are inclined to loan money to qualified applicants. P2P lending websites connect borrowers directly to investors, as these lenders are called. Each website sets the rates and the terms (sometimes with investor input) and allows the transaction.

P2P has only existed since 2005, however the crowd of competing sites is already considerable. While they all operate the identical basic way, they vary quite a bit in their eligibility criteria, loan rates, amounts, and tenures, as properly as their target clientele.

Funding Societies, a SME digital financing platform in Southeast Asia, is ending an eventful year by means of crossing the SGD 1 billion mark in SME loans.

In line with the platform’s purpose of responsible growth, Funding Societies multiplied its loan volume by three times in the last 12 month while preserving default rate of 1.5%. They declare that this is the highest quantity given out with the aid of any SME digital financing platform in Southeast Asia.

With presence in Singapore, Indonesia and Malaysia, Funding Societies shared that is has facilitated extra than 1 million enterprise loans to SMEs thru a base of greater than 150,000 individual and institutional investors in the last 4 years when you consider that inception in 2015.

They attributed the growth in SME loans with Funding Societies is reflective of the increasing openness amongst companies towards new technology funding options.

Funding Societies specialises in all forms of short-term unsecured financing up to S$2 million, with funds disbursed as early as the next day. Funding Societies’ SME clients ranges from micro companies and SMEs to small listed companies looking for working capital financing. For platform investors, the minimum amount is low beginning from $20 per investment. Other than individuals Funding Societies also has regulated financial institutions and funds who make investments into loans on the platform.