Sunday 14 October 2018

(Post 55/week 41)Investment project updates(Peer to peer lending):Moolahsense(My eighth campaign)

Moolahsense(My eighth campaign with Moolahsense)

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)

Issuer summary
Date of listing:FEB 2018
Tenor: 63 days
Note type: Invoice financing

Quoting from let's crowd smarter website...

  • Equal installment: Invoice financing refers to the sale of accounts receivables by a company for immediate cash. It is a form of short-term financing often used to improve a company’s working capital position. Invoice financing is similar to short-term loans, although there are some differences.
    In a p2p context, there are 4 parties: the company (or seller of the invoice), the company’s client (or debtor), the p2p platform and the investor.A very useful chart from let's crowd smarter is shown below
Repayment frequency: End of maturity
  • Repayment frequency: Will be paid at the end of the campaign
Target interest rate:12%P.A

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
  • E.g For this campaign, I have funded $200 into it
  • As the target interest rate is 12%, this means that at the end of the tenor, which is only 63 days/2months I will expect to receive $204
  • 100%=$200
  • 1 year=12%
  • 2month=(12/1)*2=2%
  • 2%(Interest for 2 month)=($200/100)*2=$4
  • 102%(The Principal + the interest for six month)=$200 + $4=$204
  • Since the payment will only be made at the end of the campaign,i will expect to receive the lump sum of $204 at the end of the campaign
Summary company profile

  • The issuer is a company incorporated in Singapore in 2011. 
  • The Issuer is in the building and construction industry and has around 20 employees. 
  • The Issuer is specialized in electrical engineering works and is registered with the Building and Construction Authority of Singapore as a Registered Contractor for Electrical Engineering 
Detail of purpose

  • Invoice Financing- The Issuer seeks to obtain short-term financing and working capital through this loan, which is expected to be repaid from the proceeds of the Issuer.
Financial statement

Due to it being a invoice financing,no financial statement is presented,except a summary

Turnover(the amount of money taken by a business in a particular period):$2,594,655,.00
Debtor industry: Construction
Invoice Face Value:$135,850,00
Invoice Payment Terms: 63 days

Why did I invest in this loan?
  • The invoice financing period is only 63 days(due to late payment, the company still owes me about $30)
Repayment schedule

Net repayment is almost the same as the working capital that I have calculated above:$204

The downside for invoice financing is that both principal and interest are only payable at the end of the campaign

Stay tuned to my next week post:moolahsense(my ninth campaign)!

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