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:OCT 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%, this means that at the end of the tenor, which is 6 month I will expect to receive $560
- 12%(Interest for 12 month/1 years)=$60
- 112%(The Principal + the interest for six month)=$500 + $60
- Since the tenor is 6 months, each month I will receive $(inclusive of interest) in payment/equal installment
- The issue is a company incorporated in Singapore in 1995.
- The Issuer is in the food and beverage industry and has around 10 employees. The issuer offers Korean cuisine at its restaurant.
- The Issuer seeks funds to invest in marketing campaigns and to hire additional chefs and waitstaff at its restaurant to support an anticipated increase in business volume following the marketing campaigns
- No data in its financial statement due to the restaurant bankrupt and all data relating to its financial statement is deleted
Why did I invest in this loan?
- No comparison of financial data due to restaurant bankrupt, hence I will use the DP credit rating disclaimer
- DP credit rating disclaimer: DP8
- As this campaign has already been finished, 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:interest/start balance=$10.00/$500=2%(Percentage conversion must *100)
Effective interest rate:2%*12=24%(Same as the target interest rate)
From the above picture, you can see that the Net repayment is at $89.26 instead of the $93.33 that I have mentioned above at the working capital, hence I will do a calculation here again
$500(the amount I put in this campaign=100%
The target interest rate as you can see in my above post is at around 24%P.A, after taking into account of the tenor rate being 6 months (12% only), compare to 7.112% its almost 5% difference(i shall call this net interest rate instead)in this campaign. To conclude, this means that if you invest in a (24%P. A) high-interest rate campaign in moolahsense, you will get only about 7.112%.
Nevertheless, despite being bankrupt they manage to pay all of the loans which is quite remarkable and commendable, unlike my other default loan.
The next funding campaigns that I will update soon have a target interest rate of 24%P.A and will be the first default loan that I will touch on
Stay tuned to my next week post:moolahsense(my fifth campaign)!