Another Singapore-based crowdlending platform is MoolahSense. For small- to medium-sized enterprises (SMEs) looking to secure a loan, the process with Capital Match or MoolahSense isn’t that much different than going to a bank, with two exceptions: one, it involves a lot more logging in to websites and uploading documents, and two, it is much more likely to succeed. According to Capital Match, 80 to 90% of small business bank loan applications are rejected by large financial institutions in Singapore.
On Capital Match, the borrower can make a request for a loan and then forward all the necessary documentation to the company. After approval, the loan request goes up on Capital Match’s online platform, where potential investors can review it via their own investor accounts and decide whether to contribute to the loan. An investor may contribute as little as SGD 1,000 (USD 745) or go large and cover the entire loan. The loan amounts are currently in the ballpark of SGD 50,000 (USD 37,240) to SGD 200,000 (USD 149,000) with a tenure of three to 12 months and interest rates of 1.5 to 2% per month. Once the loan has been covered, Capital Match syndicates the loan and draws up the legal documentation for all parties. Finally, the money is transferred to the borrower.
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