Good Deeds Paid Off – Withdrawal of Loan SB-1605024

As you’re aware, Funding Societies take credit assessment and defaults very seriously. To us, safe growth is more important than fast growth. This is evident from our default rate of 1.8% (as of June 2016), which is much lower than that of comparable platforms. It’s a principle shared by our Board of Directors, management and team. Our principle was put to test a few weeks ago.


As you’re aware, Funding Societies take credit assessment and defaults very seriously. To us, safe growth is more important than fast growth. This is evident from our default rate of 1.8% (as of June 2016), which is much lower than that of comparable platforms. It’s a principle shared by our Board of Directors, management and team.

 

Our principle was put to test a few weeks ago. The loan SB-1605024 for S$ 300,000 was creditworthy and fully subscribed by investors. The borrower has millions in revenue, excellent margin and overall good profile. Typical before disbursement, we conducted a second check and found that a new credit litigation for S$ 150,000 has been filed against the borrower in the span of days. Should we disburse the loan?

 

After detailed deliberation, we decided to cancel the loan and release the committed funds back to investors. It’s a costly decision. However as the clearance of litigation takes time, the borrower’s creditworthiness may quickly change. We believe it’s the right thing to do, but are terribly sorry to our investors for the idle funds and inconvenience caused.

 

To our surprise, we received numerous positive responses, including:

 

 “Thank you, I am impressed with your diligence in this matter.”

 

“Thanks for the update. I am glad that there is an existing process for secondary check prior to disbursement of fund. Much appreciated that you also took the difficult decision to cancel a fully funded facility in order to protect investors’ interest.”

 

“Thanks for keeping [us] informed. Appreciate your proactive step to verify borrower and stop the disbursement.”

 

“Team FS, thank you for update. Better be safe than sorry; so far FS approach is working... Keep it up!”

 

“Well done guys! Keep up the vigilance! Thanks”

 

We just want to thank all the investors who have been with us through thick and thin, appreciative of the extra miles we’ve gone for investor protection, and patient with us when such protection causes inconvenience. We strive to continuously improve and serve you better. Thank you! 




November 02, 2016    Funding Gap: SMEs in Malaysia
July 01, 2016    Insuring Your Future




11 Collyer Quay, The Arcade, #17-00
Singapore S049317

Tel : +65 6221 0958
Email : info@fundingsocieties.com
*To contact our Personal Data Protection Officer,
Please include "Re: PDPA" in the Email Subject title.
Tel : +65 6221 0958
Email : info@fundingsocieties.com
Capital Markets Services License No: CMS100572-1 issued by Monetary Authority of Singapore (2016)

© 2015 Funding Societies Pte Ltd. All rights reserved.
SSL Secure Site