CoAssets offers Singaporean investors the opportunity to invest in South East Asia and Australia SMEs. The highlight of the platform is that it offers longer investment durations (up to 3 years) than other platforms. Additionally, it is the first platform to be publicly listed (ASX). Unfortunately, the platform is not the most accessible, with minimum investments ranging from S$1,000 to S$5,000.
|Summary of CoAssets Investment Platform|
|Longest business loans among Singapore crowdfunding platforms: 3 years|
|Publicly listed: Australian Securities Exchange (ASX)|
|Short and long-term investments|
Table of Contents
- What Makes CoAssets Stand Out to Investors
- Investment Opportunities at CoAssets
- CoAssets Recent Results
- Investor Eligibility Requirements
What Makes CoAssets Stand Out to Investors
CoAssets provides the longest business loan durations of any crowdfunding platform in Singapore. This gives investors the opportunity to invest in projects with longer repayment schedules, which could reduce the hassles associated with reinvesting. CoAssets is also the only Singaporean P2P/Crowdfunding investing platform that is publicly listed (ASX). This unique characteristic requires transparency on the part of CoAssets, which might be attractive to investors that are uneasy about crowdfunding investing. Finally, the platform offers a range of investment opportunities, including short and long-term investments.
Unfortunately, CoAssets requires a minimum investment per deal of at least S$1,000, and often as much as S$5,000. This minimum is higher than several other P2P/Crowdfunding investment platforms and may deter investors that are not willing or able to contribute around S$1,000 per investment opportunity. Also, deals take longer to process (45 days versus competitors that complete deals in 1-3 business days) and are generally smaller than other platforms. This indicates that there may be fewer attractive opportunities for investors.
Investment Opportunities at CoAssets
CoAssets offers a range of short and long-term investment opportunities in SMEs. These include: working capital loans, invoice financing, expansion capital, and bridging capital. All investments are unsecured, but are backed by personal guarantees of SME directors. CoAssets appears to charge an investor service fee, although it is unclear how much they charge.
Working capital and bridging capital are both short-term investments. Working capital loans appear to make up the majority of CoAssets completed deals and offer businesses funding to cover daily operational costs. Bridging capital gives businesses short-term financing while they await a bigger loan. These short term financing deals tend to yield higher annualized returns, albeit over a shorter tenure. Investors seeking short-term investment opportunities with competitive returns should consider these options.
Invoice financing allows investors to lend money to SMEs based on the SMEs' invoices from its customers. This type of investment is generally less risky as the invoices provide an expectation of repayment. Consequently, invoice financing tends to offer lower returns than other business financing investments. Risk averse individuals interested in investing in SMEs might prefer invoice financing opportunities.
Expansion capital refers to larger, longer-term, SME loans for business growth. CoAssets offers the longest business loans (3 years) of P2P/Crowdfunding sites in Singapore. These investments tend to return higher rates than invoice financing. Investors that are interested in long-term investments in small businesses may be best-suited for CoAssets' SME loans.
|Total Deal Amounts||S$50,000 - S$3 million|
|Investment Durations:||3 - 36 months|
|Cash Disbursement:||Within 45 days|
CoAssets Crowdfunding Platform Recent Results
On average, CoAsset's platform has generated solid returns for its investors. For example between 2016 and 2018 its average annualised return ranged from approximately 8 - 11%. The platform has also greatly reduced its default rate. For example, in 2016 CoAsset's default rate was 26.32%, and in 2018 this figure was reduced to 0%.
|Year||Weighted Average Annual Return||Non-Performing Loans (90+ days)|
Investor Eligibility Requirements
CoAssets does not provide much information regarding investor eligibility on their website. However, the minimum investment requirement is S$1,000. Some deals require as much as S$5,000.