Note*the company name will not be revealed just like the previous post as my money are still inside moolahsense, haha(this is not a sponsored post by the way)
Date of listing: NOV 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
- E.g For this campaign, I have funded $500 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 24%P.A, this means that at the end of the tenor, which is 6 month(12%) I will expect to receive $560
- 12%(Interest for 6 months)=$60
- 112%(The Principal + the interest for the two years=$1000+$60=$560
- Since the tenor is 6 months, each month I will receive $93.33(inclusive of interest) in payment/equal installment
Summary company profile
- The issuer is a company incorporated in Singapore in 2006. The Issuer is in the building and construction industry and has around 10-20 employees. The Issuer specializes in the installation, servicing, and maintenance of fire prevention and protection systems as well as fireproofing materials. The Issuer is registered with the Building and Construction Authority of Singapore as a Registered Contractor for Fire Prevention & Protection Systems.
Detail of purpose
- The Issuer seeks funding to provide working capital for existing and new contracts which have been awarded to the Issuer.
Will only reveal a part of the financial statement due to confidentiality. As I have mentioned a few 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/Year 2015
(Current ratio 2016:1.41),(Current ratio 2015:3.53)
(Quick ratio 2016:1.41),(Quick ratio 2015:3.53)
(Total liabilities/equity 2016:1.79),(Total liabilities/equity 2015:0.17)
Why did I invest in this loan?
- Both the current ratio 2015(3.53), quick ratio 2015(3.53) are above the recommended ratio of >2.0 and >1.25 respectively, however, its Total liabilities/equity 2015(1.79) are out of the recommended range of <0.75.
- The current ratio 2016(1.41), quick ratio 2015(1.41) are above the recommended ratio of >2.0 and >1.25 respectively and its Total liabilities/equity 2016(0.17) is in the recommended range of <0.75, as the financial statement ratio it met all of the above-recommended ratios, I would invest in the campaign
- Furthermore,the Total liabilities/equity (2015) is 1.79 while the Total liabilities/equity (2016) is 0.17,sugggesting it is decreasing and this most probably mean that the company are paying off their liabities/debt
As this is still an ongoing campaign, below is the repayment schedule so far
link on how too read the effective interest rate for moolahsense:http://letscrowdsmarter.com/understanding-interest-rates/
Monthly interest rate:Principal/start balance=$10.00/$500=2%(Percentage conversion must *100)
Effective interest rate:2%*12=24%(Same as the target interest rate)
As you can see the status of the payment is completed, making this my first completed campaign in moolahsense, will continue with my next week post of moolahsense(my fourth campaign).