Moneysave, a P2P Crowdfunding Platform registered with the Securities Commission Malaysia has crowdfunded its 100th investment note on November 27 with a total of RM7.68 million invested since launching seven months ago.
With its risk reduction incentives, Moneysave has been able to maintain an amazing zero percent Default Rate for the last 100 investment notes that it has hosted and disbursed. Typically investors’ yield was between 7.50 to 16 percent per annum (p.a.) with tenure of investments between one to four months only.
“Investors are yielding average returns of 13.96 percent p.a. with an average tenure of 2.3 months. Most notes were subscribed in less than 12 hours”, Vincent Soh, Chief Executive Officer of Moneysave said.
“Our credit team has been extremely careful in approving the deals as we target to maintain the lowest default rate in the industry i.e. 0 percent,” Chief Credit Officer, Eddy Lam expressed.
Moneysave focuses on the digital e-commerce supply chain and also the suppliers and contractors of the Malaysian Government, Ministries, agencies, and government-linked companies (GLCs) as well as companies such Telekom Malaysia, Tenaga Nasional, Sime Darby, Maybank, Petronas, Axiata, Maxis, Public Bank and other as Top 100 BURSA companies.
“We are here to complement the various government initiatives such as Malaysia’s Prihatin Rakyat Economic Stimulus Package (PRIHATIN), Bank Simpanan Nasional (BSN), Tekun Niaga Financing Scheme, Soft Loans for SMEs (SLSME), Penjana SME Financing, SME Bank, MARA, Special Relief Facility by BNM, Credit Guarantee Corporation (CGC), Syarikat Jaminan Pembiayaan Perniagaan (SJPP) Guarantee Scheme, SME Corporation, etc.,” Vincent Soh addressed.
For SMEs or Investment Note Issuers, they are given up to 20 Risk Reduction Incentives to reduce their business and credit risks which range from 0.25 to 2.50 percent interest reduction p.a.
For example, a government supplier or contractor rated ‘B’ by a Credit Rating Agency that is priced at 19.75 percent p.a. would be given risk reduction incentives as below:
- 1.50 percent p.a. if its Buyer is the Malaysian or State Government or its bodies or agencies
- 2.50 percent p.a. if it managed to get the Government to pay direct to Moneysave when the invoice is due
- 1.50 percent p.a. for giving key director’s guarantee in event of default
- 0.50 percent p.a. for Invoice Validation by Moneysave with the Buyer
- 0.50 percent p.a. for Post Dated Cheques collected as security
- 0.25 percent p.a. for three continuous prompt repayments made
- 1.00 percent p.a. for assignment of two Keyman Life Insurance to the Platform in the event of death or total permanent disablement of the company’s two keyman
- 1.00 percent p.a. as repayment is made in one Bullet Repayment in one Month
The above incentives are capped at 8.00 percent p.a., therefore for the above investment, Moneysave’s investors would enjoy an 11.75 percent p.a. annualised returns.
Many of Moneysave’s lower-yielding notes between 8 to 12 percent p.a. are usually subscribed faster (between one to six hours from live online hosting) than higher-yielding 12 to 16 percent p.a. investments (one to four days).
On November 3, Moneysave P2P Crowdfunding Platform also announced the fastest Malaysian P2P Crowdfunding of Potboy, a leading Malaysian online grocer. The record was achieved in 95 seconds starting from the time the Investment Note was hosted online to 100 percent subscription.
Issuers or Small Medium Enterprises (SMEs) come to Moneysave’s platform to seek financing by selling their Trade Invoices or Trade Receivables or Trade Payables (Purchase Order Financing) at a margin of up to 85 percent of the invoice value.
For example, an Invoice Value of RM100, 000 can be funded up to RM85, 000. The tenure of funding is short term between 30 to 180 days only.