Business Magazine

My First Investment Into Crowdfunding For SMEs

Posted on the 18 March 2016 by Sgyounginvestment

Just a few days ago, I made my first investment into something which I have been looking closely at for quite some time now. I decided to get into it because I believe it is safe enough and the returns are relatively good at 13.5%.

In just 26 hours, $1 million was actually raised by this particular company. They are going to raise another $1 Million so investors still have a chance to invest in it. What exactly is this investment on?

Here are the details:

Issuer Summary

Date of Listing: March 17, 2016
Amount: S$500,000
Tenor: 12 months
Repayment Type: Callable
Repayment Term: Quarterly
Target Interest Rate: 13.50% p.a.
Purpose: Asset Purchase

About the company:

The Company is a well-known brand started in early 2002 by a very experienced entrepreneur with over 25 years of experience in the IT industry. It was established with the objective to be a one-stop digital lifestyle store by offering a comprehensive suite of digital lifestyle products and high quality pre- and post-sale services.

Revenue Source:

The Company generates revenue through a multi-channel point-of-sales strategy using both offline (retail) and online (e-commerce) channels to transact physical merchandise. Their products consist of a wide range of exclusive computing and mobile equipment (such as laptops, tablets, smartphones, accessories, cases, headphones, and stylus) from top IT brands and the Company's private label.

Purpose:

The purpose of this funding is to finance the purchase of inventory as well as for general working capital.

Corporate Guarantor:
Her parent company (an SGX-listed company) will provide a corporate guarantee for the notes.


This investment is brought to you by Moolahsense. They got the company on board their platform where the company started this funding campaign to raise cash. When we invest in this company, we are actually lending money to the company to expand their business in return for interest.


Risks of this investment:

Many of you might be worried about the risk involved when investing through crowdfunding platforms. While risks are always present in every investment, we can reduce it by doing our homework. The risk of notes/bonds investment is when the company defaults on its payment. Looking at its financials, the company has a operating profit of $330K and cashflow from operations of $5.1 Million in the current financial year. It also has an average cash balance of $1.4 Million. This particular investment is also guaranteed by the parent company which is a SGX listed company.

I am sure the company name is familiar to most people here in Singapore but due to some confidentiality, I will not be able to mention the name of this company in this post. If you are interested to find out about the investment, you will need to sign up for an account with Moolahsense and view the opportunity in their platform. If you already have an account with Moolahsense, you can login to view this opportunity straight away.

SAMPLE Scenario (only intended for illustration).

This particular investment is a callable note. In a Callable note, an issuer has an option to early redeem the note on a quarterly basis. If the note is not early redeemed, the issuer pays a quarterly interest. The principal will be fully repaid on the quarter that the redemption is early called or at the maturity date.

Assume that you invested $10k in a campaign at a final note rate of 13.5% p.a. in a Callable note.

My First Investment Into Crowdfunding For SMEs


This is a short term investment which I have also participated in. I believe it is a good opportunity with decent returns for the short term.

To invest in this short term note, check out the investment opportunity on their website here.


This article is written in collaboration with Moolahsense. All ideas portrayed are independent by SG Young Investment.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Looking for the BEST Copycat Crispy Famous Amos Chocolate Chip Cookies (Part...

    Looking BEST Copycat Crispy Famous Amos Chocolate Chip Cookies (Part Recipes)

    version;YES! I've found you!!!YES! You are the Famous Amos Cookies!!!YIPPEE!!!Please pardon me and my over-reacting ecstatic moments! *nervous chuckle*Am I mad... Read more

    13 hours, 38 minutes ago by   Zoebakeforhappykids
    FOOD & DRINK, RECIPES
  • Jade Eagleson Debut EP Review

    Jade Eagleson Debut Review

    Jade Eagleson gave everyone a Wednesday morning surprise when he released his debut EP. The smalltown Ontario country singer is an emerging star in country... Read more

    The 17 October 2018 by   Phjoshua
    LIFESTYLE, SELF EXPRESSION
  • The Pumpkin Spice Products I’m Buying This Fall

    Autumn is my favorite season and to celebrate I indulge in everything pumpkin spice. l buy the seasonal fall products I’ve come to love, while trying out some... Read more

    The 17 October 2018 by   A Girl In La - Style Blog
    DIARIES, LIFESTYLE
  • Singularity: Jon Hopkins Live Show

    Singularity: Hopkins Live Show

    I do not even remember when I first learned of Jon Hopkins‘ music. Maybe about 4 years ago I discovered his incredible album Immunity that made him a huge name. Read more

    The 17 October 2018 by   Flemmingbo
    CULTURE, PHOTOGRAPHY, TRAVEL
  • Loneliness

    Loneliness

    Most of us are a mixture of extrovert and introvert and I’m no exception. I love getting out and meeting people, chatting and laughing, but, equally, I... Read more

    The 17 October 2018 by   Ashleylister
    BOOKS, CREATIVITY, CULTURE, SELF EXPRESSION
  • Connecting with the Tribe in Annapolis

    Connecting with Tribe Annapolis

    “Drink this. Now.” The Annapolis Boat Show was in full swing, but my friend Nica wasn’t handing me one of Pusser’s famous Painkillers with her demand. She had... Read more

    The 17 October 2018 by   Behan Gifford
    FAMILY, OUTDOORS, SEA, TRAVEL
  • A Quick Note About Voting in the Midterm Election, Part 1

    Voting in the November 6 midterm election has never been more important… or easier! Watch this short instructional video I whipped up, then REGISTER TO VOTE! Yo... Read more

    The 17 October 2018 by   Designerdaddy
    FAMILY, PARENTING

Magazine