KUALA LUMPUR – MoneySave, a P2P Crowdfunding Platform registered with Securities Commission Malaysia has crowdfunded its 100th investment note on November 27 with a total of RM7.68m invested since launching 7 months ago.
“Investors are yielding average returns of 13.96% p.a. with an average tenure of 2.3 months. Most notes were subscribed in less than 12 hours”, quoted Vincent Soh, CEO, MoneySave.
With its World’s first risk reduction incentives, MoneySave has been able to maintain a Zero (0%) Default Rate for the last 100 investment notes that it has hosted and disbursed. Typically investors yield was between 7.50%-16% p.a. with tenure of investments between 1-4 months only.
“Our credit team led has been extremely careful in approving the deals as we target to maintain the lowest default rate in the industry i.e. 0%,” quipped, Chief Credit Officer, Eddy Lam who has more than 35 years of Credit and Risk Management experience with Hong Leong Bank, Standard Chartered Bank, DBS Bank, RHB Bank and Maybank.
MoneySave focuses on the digital e-commerce supply chain and also the suppliers and contractors of Malaysian Government, Ministries, agencies and government linked companies (GLCs) as well as companies such Telekom Malaysia, Tenaga Nasional, Sime Darby, Maybank, Petronas, Axiata, Maxis, Public Bank and other as Top 100 BURSA companies.
For SMEs or Investment Note Issuers, they are given up to 20 Risk Reduction Incentives to reduce their business and credit risks which range from 0.25% to 2.50% interest reduction per annum.
For example, a government supplier or contractor rated ‘B’ by a Credit Rating Agency that is priced at 19.75% p.a. would be given risk reduction incentives per following:
- 1.50% p.a. if its Buyer is the Malaysian or State Government or its bodies or agencies
- 2.50% p.a. if it managed to get the Government to pay direct to MoneySave when the invoice is due
- 1.50% p.a. for giving key director’s guarantee in event of default
- 0.50% p.a. for Invoice Validation by MoneySave with the Buyer
- 0.50% p.a. for Post Dated Cheques collected as security
- 0.25% p.a. for 3 continuous prompt repayments made
- 1.00% p.a. for assignment of 2 Keyman Live Insurance to the Platform in event of death or total permanent disablement of the company’s 2 keyman
- 1.00% p.a. as repayment is made in 1 Bullet Repayment in 1 Month
The above incentives are capped at 8.00% p.a., therefore for the above investment, MoneySave’s investors would enjoy an 11.75% p.a. annualised returns.
Not surprising, many of MoneySave’s lower yielding notes between 8-12% p.a. are usually subscribed faster (between 1-6 hours from live online hosting) than higher yielding 12-16% p.a. investments (1-4 days)
On 3rd November 2020, MoneySave also announced the fastest Malaysian P2P Crowdfunding of Potboy a leading Malaysian online grocer. The record was achieved in 95 seconds starting from the time the Investment Note was hosted online to 100% subscription.