Wednesday, 6 June 2018

(Post 31/Week 23)Investment project updates:Moolahsense(My first campaign back in 2017)

6.Moolahsense(My first campaign with Moolahsense)

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)

Issuer summary

Date of listing: September 2017
Tenor:24 month
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: Monthly
  • Repayment term: Will be paid monthly
Target interest rate:10% per annum

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
Purpose: Working capital

Quote from valuepenguin:
  • 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
  • 100%=$1000
  • 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
  • 1month=$1200/24=$50
Summary company profile

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

Financial statement

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)

Year 2016
Current ratio:0.8(this is less than 1)

  • If a company has a current ratio less then 1.0, do not invest in it
  • If a company has a current ratio more then 2.0, May consider investing in it
  • The higher the current ratio, the better
Quick ratio:0.65(this is below 0.75)
  • The quick ratio is almost similar to current ratio except that it is assumed that the company does not sell its inventories(e.g Toyota inventory is its car) or stock, it is still able to fulfill its debt
  • If the company has a quick ratio of 0.75 and below, do not invest in it
  • If the company has a quick ratio of 1.25 and above, May consider investing in it
  • The higher the quick ratio the better


Total liabilities/equity:1.78(About debt ratio of 1.5)

  • The debt ratio is calculated by total liabilities divided by the equity
  • If the company has a debt ratio of 1.5 and above, do not invest in it
  • The company should essentially have a debt ratio of 1.0, if the debt ratio is below 0.75, do consider investing in it
  • The lower the debt to equity ratio the better

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

Year 2015
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)!


  1. I had setup an account too. But in the end, I never try it out.

    1. Hi,it's a good thing that you didn't try it out,my current stand is that it is better to diy