MoolahSense Lending Platform - Review for SME Borrowers
MoolahSense Lending Platform - Review for SME Borrowers
ValueChampion Rating 
Pros
- Large loans available for SMEs ineligible for traditional bank loans
- Quick financing
Cons
- No option upsize loans if funding offers exceed funding goals
MoolahSense provides SMEs with a great P2P/Crowdfunded financing alternative to traditional banks. The platform, which offers business loans and invoice financing, provides the largest P2P/Crowdfunded business loans of more than S$5 million and incredibly quick cash disbursement within three business days.
| Summary of MoolahSense Lending Platform |
|---|
| Largest P2P/Crowdfunded Loans: S$5 million+ |
| Cash disbursement within 3 business days |
| Lower revenue requirement for business loan than banks: S$300,000 per year |
| Invoice financing from S$15,000 up to 80% of invoice amount |
Table of Contents
What MoolahSense Lending Platform Stand Out to Borrowers
MoolahSense offers the largest loans of any P2P/Crowdfunding platform to Singapore SMEs, with its business loans ranging from S$50,000 to more than S$5 million in size. It's also unique in that it disburses these sizeable, short to medium-term (3-24) loans within 3 business days; no other P2P lender offers this much financing as quickly. While Funding Societies' FS Bolt offers faster funding, providing up to S$20,000 within one business day, this is not a comparable option due to its interest rates that can be up to 10x higher than normal business loans. MoolahSense allows young companies that might not qualify for bank loans to quickly finance anything from daily operations to large scale projects. Interest rates are determined by borrowers (assuming lenders agree to fund the campaign) or by auctions, in which investors bid on opportunities based on interest rates that they would be willing to receive. MoolahSense's platform allows for a number of interest rate types (equal installments, interest only, callable, or bullet), which gives SMEs additional flexibility in customising their loan.
MoolahSense offers a suite of SME financing: Secured & Unsecured SME Business Loans and Invoice Financing. Its SME business loan is an excellent short to mid-term financing option, which allows companies to keep up with daily operation cash needs or grow their business. While these loans tend to be unsecured, meaning you don't have to provide any collateral to get the loan, MoolahSense provides the option of getting a secured loan that's backed by the borrower's asset, which can help to reduce the loan's interest rate. Finally, invoice financing makes sense for SMEs that have a significant amount of invoices/accounts receivable and require short-term financing in the meantime.
On the other hand, MoolahSense does not allow borrowers to "upsize", or accept more than their funding goal. Also, competitor Funding Societies has a more impressive track record, with over 2,000+ completed deals totalling more than S$105 million and a default rate of just 1.4%. That being said, MoolahSense has completed a respectable 400+ loans totalling more than S$50 million with a solid default rate of 3.48%, making it a formidable competitor. MoolahSense's higher default rate might indicate that the platform is more lenient in its application process.
MoolahSense charges a S$500-S$750 application fee for its business loans, unlike Funding Societies, which doesn't charge an application fee. Lastly, MoolahSense charges 4% success fee, which is comparable to other platforms.
MoolahSense Lending Platform Financing Features
| Feature | Unsecured Business Loan | Secured Business Loan | Invoice Financing |
|---|---|---|---|
| Financing Amount | S$50,000 - S$5,000,000+ | S$50,000 - S$5,000,000+ | S$15,000+ up to 80% of invoice value |
| Duration | 3 - 24 months | 3 - 24 months | 15 - 90 days |
| Success Fee | 4% per year of loan amount | 4% per year of loan amount | 1% per month on pro-rated basis |
| Collateral Requirement | N/A | More than 100% of loan value | Tax invoices from B2B company |
Who Can Borrow: Eligibility Criteria
Singapore-registered Private Limited or Limited Liability Partnership entities that have at least 1 year of accounts filed with ACRA or have been trading for 2 years and have at least S$300,000 in annual revenue are eligible to apply for MoolahSense's business loans.
Borrowers seeking invoice financing must be Singapore-registered Private Limited or Limited Liability Partnership entities with total annual revenue of S$100,000 with a operating history of one year. Additionally, applicants must have tax invoices with fixed payment terms of 15 – 90 days from customers who are B2B companies.
| Feature | Unsecured Business Loan | Secured Business Loan | Invoice Financing |
|---|---|---|---|
| Operational History Required | 1 year+ | 1 year+ | 1 year+ |
| Revenue Requirement | S$300,000 | S$300,000 | S$100,000 |
| Success Fee | 4% per year of loan amount | 4% per year of loan amount | 1% per month on pro-rated basis |
| Application Fee | S$500 | S$750 | S$1,000 per year |
| Receive Cash | Within 3 business days | Within 3 business days | Within 3 business days |
How to Apply: Application Process
MoolahSense's application takes fewer than 5 minutes and is reviewed within 2 days. The platform features financial and operational requirements that are similar to most P2P lending platforms and less burdensome compared to banks. Borrowers seeking business loans must submit at least 6 months of bank statements from a local or Foreign Qualifying full bank in Singapore and financial statements. Secured loan applicants must submit monthly accounts receivable books. Borrowers applying for invoice financing must submit 6 months of bank statements, tax invoices and latest IC/NOA/CBS of guarantor.
Other Required Documents
- ACRA Bizfile Business Profile Report
- Limited Liability Partnership Agreement/Memorandum & Articles of Association (M&A)
- Proof of Identity of Directors/Partners/Managing Partner
- Proof of residential address of all the authorized directors/Partners/Managing Partner in the resolution
- Proof of local trading address, dated within the last six months
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.