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Crowd funding bond with 21% interest


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Bro @OmOm, I am not slamming the website or its founders as scams.

I do clearly know that the website, the companies trying to raise the funds, and the investors are all separate parties.

 

I did not use the word scam, as that will be unfair given that I did not research on this matter.

If anything, I find the company raising the funds dubious. Not the platform.

 

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So this website is trying to be like a "micro loan" website? (though the micro loan concept is coming from 3rd world countries and the sizes of the loans definitely cannot be considered micro)

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I stand corrected if I've misunderstood this.

 

This website is trying to match borrowers with lenders right?

If borrower defaults, lenders will have to bear the consequences whilst the owners of the website are not liable and just pocket the commission for providing this service.

 

Sort of a Fiduciary Deposit I guess? Will the Lenders know who are the borrowers or is it in a pool?

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I am not advocating their platform and I have not invested with them at all.

 

 

Well, since you know them and so confident about their model... How much you invested?

 

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Hi bro, no worries, I am just to trying to clear the air so that people do not misunderstand. The team there has been working hard to grow the start-up and it would be unfair to them if people are shooting them down because of mere assumptions.

 

Cheers.

 

Bro @OmOm, I am not slamming the website or its founders as scams.

I do clearly know that the website, the companies trying to raise the funds, and the investors are all separate parties.

 

I did not use the word scam, as that will be unfair given that I did not research on this matter.

If anything, I find the company raising the funds dubious. Not the platform.

 

 

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Hi bro, no worries, I am just to trying to clear the air so that people do not misunderstand. The team there has been working hard to grow the start-up and it would be unfair to them if people are shooting them down because of mere assumptions.

 

Cheers.

 

 

 

Understand you are not part of the org but would you know:

 

1. If lender and borrower are matched via the site, is there a standard template contract from the site for them to sign? Or they have to arrange their own?

 

2. Does lender get to meet borrower face to face or everything is arranged via the site?

 

Just thinking like a crook and there seems to be quite a lot of ways to abuse this depending on how the mechanics work.

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I stand corrected if I've misunderstood this.

 

This website is trying to match borrowers with lenders right?

If borrower defaults, lenders will have to bear the consequences whilst the owners of the website are not liable and just pocket the commission for providing this service.

 

Sort of a Fiduciary Deposit I guess? Will the Lenders know who are the borrowers or is it in a pool?

Actually the borrower will be a beauty and wellness company trying to raise money for working capital... but will the company pay back at 21% interest in 3 months? There's a believer who is not advocating and investing. To me I choose to be a non-believer whether to loan or to invest. The bank loan for company is definitely lower than 21% however it would not loan $250,000 without any guarantee.

 

It is a good mean to get working capital fast but if the company goes bust and the website is not liable? No channel to recover the "investment"... Good for the borrower, bad for the lenders.

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You may wish to refer to the FAQs on their web-site as I think those are rather comprehensive and cover what you are asking.

 

 

 

Understand you are not part of the org but would you know:

 

1. If lender and borrower are matched via the site, is there a standard template contract from the site for them to sign? Or they have to arrange their own?

 

2. Does lender get to meet borrower face to face or everything is arranged via the site?

 

Just thinking like a crook and there seems to be quite a lot of ways to abuse this depending on how the mechanics work.

 

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Turbocharged

No offence but I personally know the co-founder of Moolahsense and it is not fair of you to slap it before you fully understand how the crowd-funding model works.

 

In the example that you have given, 15% is the lowest qualifying offer and it sets the lending base rate at this moment. Given that there are still 7 more days to go, the lending rate should fall further as competition amongst lenders heats up towards the close.

 

 

 

 

If your friend is willing to give out 21% p/a interest in 3 months, why not get the funds from the many credit companies that you see in the papers? Isn't that faster?

 

 

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Actually the borrower will be a beauty and wellness company trying to raise money for working capital... but will the company pay back at 21% interest in 3 months? There's a believer who is not advocating and investing. To me I choose to be a non-believer whether to loan or to invest. The bank loan for company is definitely lower than 21% however it would not loan $250,000 without any guarantee.

 

It is a good mean to get working capital fast but if the company goes bust and the website is not liable? No channel to recover the "investment"... Good for the borrower, bad for the lenders.

 

Thks for the explanation, that's what I thought as well.

 

Actually our banks work like that as well to a certain extent on certain investments like Fiduciary Deposits, Bonds etc. That said, banks do a lot of research and whilst no guarantee, they do get it right more often than not. Whereas this website is purely matchmaking and doesn't do any research on the borrower which is the fundamental difference I feel as the onus will purely be on the lender.

 

Me not risk taker so not interested at all but there will be lenders who are willing to take the plunge so I'm not surprised at the take up rate, let's see how it works out for them.

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My friend is the co-founder of the platform and not the borrowing company. He is not the one paying out the interest. Based on the outcomes of the past campaigns, the effective interest rate for the highlighted campaign will also likely to be far below 21%.

 

 

If your friend is willing to give out 21% p/a interest in 3 months, why not get the funds from the many credit companies that you see in the papers? Isn't that faster?

 

 

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My friend is the co-founder of the platform and not the borrowing company. He is not the one paying out the interest. Based on the outcomes of the past campaigns, the effective interest rate for the highlighted campaign will also likely to be far below 21%.

 

 

 

so how much fee your friend charging?

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I believe the fee is stated on their web-site, it is a percentage of the funds raised.

 

 

so how much fee your friend charging?

 

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I stand corrected if I've misunderstood this.

 

This website is trying to match borrowers with lenders right?

If borrower defaults, lenders will have to bear the consequences whilst the owners of the website are not liable and just pocket the commission for providing this service.

 

Sort of a Fiduciary Deposit I guess? Will the Lenders know who are the borrowers or is it in a pool?

 

 

sounds like the old days of tontine

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sounds like the old days of tontine

 

This brings back bad memories.

 

In the early 70s, neighbour ran a tontine. My mum participated but she was lucky as the leader absconded shortly after my mum got her money back. Created a whole atmosphere of distrust amongst the neighbours and the leader's son who continued to stay in the flat was subjected to verbal abuse every time neighbours saw him. Really sad....

 

Another was the Gemini Chit Fund. This one was legal and a few relatives got their fingers burnt. My dad who was conservative refused to take part but he was laughed at by everyone saying he got no balls. He had the last laugh when it folded!!!

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Given that the crowdfunding exercise is now oversubscribed, let's just sit back with the popcorn and see who gets the last laugh.

 

 

If company no pay back, confirm the website will pull down the listing and leave no traces.

 

Wanna watch show then you have to put money in and be involved. :a-anyone:

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