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Peer to Business Lending in Singapore

Peer to Business Lending in Singapore

Peer to Business Lending in Singapore

Peer to Business Lending in Singapore , is gaining popularity and momentum over the years.

There are 2 kinds of Crowd funding:

  1. Peer to Peer  lending also known as P2P.
  2. Peer to Business Lending also known as P2B.

What is Peer to Peer ?

Peer to peer, is a platform  where people can give or lend their money to other individual, to finance personal loans , property, medical bills and etc.It can be a charity cause or a business interest.

What is Peer to Business?

Peer to Business is Platform where people can give or lend money to a Business or Organisation , which has proven business record , and reputable image in its community , back ground check is done to secure the interest of the giver or lender.

Types of Crowd Funding

Both Peer to Peer and Peer to Business are divided into 4 Types

  1. Donation type Crowd Funding -People pool their money in exchange for a charitable cause or believe.
  2. Reward type Crowd Funding – People give money to a Company to develop a product and in return get ” Rewards , normally a product produce by the company.
  3. Debt type Crowd Funding -People lend money to small company , expect to receive interest in return.
  4. Equity type Crowd Funding-People invest money into a company , in return get  profit sharing in the form of dividends.

Why Crowd Funding ?

  1. High interest rate and long application process time  of conventional Bank is the main drive of Crowd Funding growth.
  2. Connect  lender (Public) direct to the borrower  either  an Individual or a Business cutting off the middle man.

What are the Risk Crowd Funding ?

  1. Loss of Capital.
  2. Investment Liquidity problem.
  3. Scam or Fraud.
  4. Vague and unclear Investment Details.
  5. Closure of Platform.
  6. Government Intervention.

What Crowd Funding can do for my business ?

Case Studies :

You own a Japanese Restaurant,you would want to build a website or ordering Mobile APP.But recently your company budget is bit tight.How can you get funding from Crowd Funding?

Well, you can either select Reward type crowd funding , by offering your customer discounts or free packages  , in return your customer agree to fund your development in your crowd funding platform.

or

You can either select Debt type crowd funding, by offering your investor a percentage of interest in return.

 

List of Peer to Business Lending  in Singapore , which you can gain access to Funds for APP and Web Development approved by MAS ?

 

There are actually lots of Crowd Funding , peer to business  company in the internet, and a list of them are in Singapore. As these platform or technologies are still in  its early days of evolve and growth, i would advise you to raise fund for your company from those which are already established and recognised by the Authority.

  1. Funding Societies.
  2. Capital Match.
  3. MoolahSense.

The above companies  are Peer to Business Lending In Singapore Company which approved by the Authorities

The Above article, is just my personal views and opinion from my own research.Should not be serve as a Financial advise to any party. Before you engage borrowing and lending in any crowd funding platform, do your home work and research to avoid losses.

Check out SME PORTAL also.