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SB-1601004 – 100K – Construction – Your views

Please post any Funding Societies topics that you want to discuss with the local p2p community.
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SB-1601004 – 100K – Construction – Your views

Postby admin » Mon Feb 08, 2016 11:46 pm

[repost from previous forum - Roger]


I feel this portfolio is quite reasonable for investment. Views appreciated.



The construction loan is decent, but I actually prefer the other other one – 1601003 (travel agent).

Construction industry is highly cyclical and delays to payment are very common. That said, borrower’s deposits and bank balance indicate that it manages its cashflow well. The big risk is the $400k invoice that they expect payment in Feb. If their customer pays on time, then this loan should be okay. This loan has some risk, but it is probably worth a bet for the 24% interest rate.

I like the travel agent better. Travel business is also cyclical and we often hear of agents shutting down. But borrower’s customers are more agents and corporates than individuals. So there are a lot of recurring customers – unlike individual customers that harder to retain. Plenty of growth in revenue; company plans to hire more and increase marketing efforts. This implies their business is doing well and explains their need for cash. High debt level is usually negative but in this case, it shows that plenty of borrowers – including banks – trust their business and growth plans. Travel agent loan also gives about 24% return but with less risk than construction firm.

My 2 cents worth.

same thoughts with carey.

construction – the S$400K outstanding seems like a huge chunk when compared to it’s top-line. however, the tenor/purpose of the loan sounds reasonable with whats available thus it might be a safe bet.

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