Note*the company name will not be revealed as my money are still inside moolahsense, haha(this is not a sponsored post by the way)
Date of listing: September 2017
Repayment type: Equal installment
Quoting from the moolahsense website
- Equal installment:A promissory note by which an installment of the principal subscription amoung and/or interest accrued and due up to the date of payment shall be payable on such dates as set out in a repayment schedule specified in the promissory note, and on the maturity date, the principal subscription amount would have been paid in full
- Repayment term: Will be paid monthly
Quoting from Moolahsense website
- Target interest rate: The maximum rate the issuer is willing to provide the interest on the principal subscription amount which the issuer wished to obtain, as notified in writing by the issue to Moolahsese
Quote from valuepenguin:https://www.valuepenguin.sg/what-is-working-capital
- Working capital: It is a concept to describe a business ability to cover its short-term operating costs
- Ok, this is a little bit hard to take it all in so I will give an example...For this campaign, I have funded $1000 into it(which is the amount I actually funded, which is the minimum sum that moolahsense accept for the campaign at that time)
- As the target interest rate is 10%, this means that at the end of the tenor, which is 24month I will expect to receive $1200
- 20%(Interest for the two years)=$200
- 120%(The Principal + the interest for the two years=$1000+$200=$1200
- Since the tenor is 24 months, each month I will receive $50(inclusive of interest) in payment/equal installment
The company has been around since 2015 and is listed on the Catalist board of SGX since 2016 and is in the hot dip galvanizing industry. Hot dip galvanization is the coating of steel and iron with zinc to create galvanized steel and iron, which is used in a product where corrosion resistance is needed. Its customers come from a broad range of industries including construction, telecommunications, aerospace, public transportation, and utilities. More than half its business comes from repeat customers.
Detail of purpose
The issuer seek fund to provide working capital for its new contract secured since the beginning of 2017
Will only reveal a part of the financial statement due to confidentiality. As I have mentioned two weeks ago in my post, that I only mainly use this three ratio: current ratio, quick ratio and debt to equity ratio to decide in investing in a campaign, hence I will be showing its ratio below
The ratio is as follow(left side of the column is for the year 2016/right side of the column is for the year 2015)
Current ratio:0.8(this is less than 1)
Quick ratio:0.65(this is below 0.75)
Total liabilities/equity:1.78(About debt ratio of 1.5)
At this point, you may be thinking"soniceric is full of crap and doesn't practice what he preaches since all the ratio are wrong and yet he still invests in it anyway", Don't worry I will explain below my reason for investing it
Current ratio:1.12(More than 1)
Quick ratio:0.83(Still below 1.25)
Total liabilities/equity:1.4(still not the ideal debt ratio of 1.0)
So what is the reason for investing in this campaign? (You may be actually disappointed with my answer)
It is purely because I thought I would like to try out moolahsense platform using money that I am ok with losing. Also because it has a website and is listed on the SGX which indicates it is a step up from the local SME.So in summary, it was just purely blind and instinct investment.
But luckily, this campaign turns out alright and so far there hasn't been any late payment(this campaign has been going on for about 10 months?). Ironically, some of my future campaign in my moolahsense(which I will reveal in due time) even using the ratio and fundamental and technical analysis has not been making payment promptly and has been late in payment.
Ultimately, I think the best strategy for peer to peer lending such as moolahsense and funding societies is to understand the fundamental and technical analysis of the campaign and to invest in the most minimum sum possible(Even if you think this campaign is a sure win as there is never anything in the market that is sure win!)
Do stay tuned for the continuation of my last week post of funding societies(my first campaign)!