Alternative Investing – Minterest

Minterest runs “a marketplace funding platform, connecting corporate borrowers with investors.” [https://www.minterest.sg/about, accessed 10 Apr 2019] It was one recipient of the Dun & Bradstreet Business Eminence Awards 2019. This was featured in the print copy of The Business Times, Singapore on 21 Mar 2019, p.10.

I selected some replies to online queries for potential investors below. It pleases me to learn about these things as well. Hope it helps you : )

Are there any fees payable by me?

Investors do not pay any fees for participating in the Funding Requests or for using the platform. However, a service fee of 15% will be levied on interest, factoring fees and any other fees earned by investors. All interest rates quoted on our platform are on a gross basis and payable to the investors to after deducting the service fee. There may be a small transactional fee imposed by the bank when withdrawals are made.

How is the contract signing done?

There is no physical signing of contracts. By clicking and agreeing to our platform terms, you are bound by the terms governing borrowers and lenders. This has the same legal effect as signing a contract.

What is an escrow agent?

Generally, an escrow agent is someone that holds property or money on behalf of someone while a transaction is being finalised. In our context, the escrow agent holds the investors’ money on their behalf before the investors participate or invest in a Loan Request. It will also hold money on behalf of the investors when the loans are repaid prior to it being used for further investments or withdrawn from the escrow agent’s bank account.

Will I earn interest on the money placed with Minterest?

Money placed in the escrow agent’s account will not earn any interest. You will earn interest from successfully participating in funding requests that are posted on our platform.

Would my return on investment be taxable?

You will earn interest and fee income from the investments that you make on our platform. We understand that interest and fee income earned from such investments are taxable under the laws of Singapore. You should consult your tax adviser if you are unclear about your tax obligations.  If you are a non-resident, you may also be subject to withholding tax on the interest or fee.

FAQ – Investors. (accessed 10 Apr 2019). https://www.minterest.sg/faq#faq-2.

References

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