SeedIn: Invest from 1k php
What is SeedIn?
Sabi nga, if you haven't started investing yet, there is no better time to do it than today. I, myself wished I could have started investing at least 5 years earlier, but at least I started it sooner than later.
It doesn't matter whether you started investing with 1k, 10k or 100k. What matters is that you started. And with SeedIn's 1k PHP minimum investment, there's no reason not to.
So, a friend referred hubby to this investment platform called SeedIn and it's a P2B (Peer to Business) type of investment.
Since 2017, it has already facilitated more than 415 million worth of funds for SMEs and local businesses and more than 9.9 billion for Asia Pacific countries (SeedIn Singapore, Taiwan and Cambodia).
Hubby has already earned some payouts and since I think that the interest rates are great, I also asked him to refer me. Before I put my funds though, I already did my own reading and got myself informed about this company. Since July 10, I also received the first payouts for my 2 projects and I'm continuously receiving payouts on time, even advanced sometimes. I already have a few projects now.
Here are the things that I learned about SeedIn which made me decide that I want to invest in this company.
How it Works:
So basically, we put our funds in SeedIn then we can choose to lend it to a business/company that we like. We can get investments in return (8-20% per annum). There will be a contract called loan agreement between the investors (us) and the borrowers (SMEs/businesses) and the middle-man is SeedIn.
Photo credits: The Global Filipino Investors
Important Info: You can register first and if you want to continue investing soon, you need to do self-verification such as providing address, IDs, TIN (since interest is subject to withholding tax), proof of address, etc. This is normal for investments, even for stocks trading to comply with Anti-Money Laundering Act. Don't worry because your personal data is safe.
Bank account is needed so if you want to withdraw your investment in the future, only your enrolled bank acct can receive the money. This is for your safety, example, in case your phone is lost or stolen and your login info is saved in your phone. If you don't want to provide bank acct details, you can also use GCASH acct instead.
Pro𝙨:
- investments starts at 1k PHP. So you can easily try without putting a big hole on your investment allocation. SeedIn SG investments starts from 1k SGD, but here, it's only 1k PHP.
- 8-20% interest rate per annum. Mostly, I see 11-16% rates. Note: Take home is 70% of the interest gained because of risk-assessment fees and taxes.
- much better interest rate compared to banks. So for example, you invested 10k php with 14% per annum rate, for a period of 10mos. You will get an interest of 816.70 php when taxes and deductions are made. That is still 8.16 % interest! Yung 10k php, magiging 10,816.7 php. It's a lot better than time deposit interest rates from banks which are less than 1%. For a better explanation on how the interest is calculated, please click here.
Example of Payouts (10 months Tenure at 14% interest rate, 10k php capital)
- so far, no delays on payouts since they started operations, even now when there's covid.
- no project has defaulted so far, meaning walang project na hindi nakabayad ng loan nila.
- operating since 2017. They just celebrated their 3rd year anniversary. So hindi naman tatagal to kung hindi sya ok.
- no obligation / not required to invest after sign-up. You can study the system first and you can continue with the self-verfication online when you feel that you want to continue.
- less risk compared sa stocks and P2P (Peer to Peer lending platform) dahil may collateral ung mga businesses and lots of processes and check before they can make a loan. Here in EU where we live, there are lots of delayed payments or defaulted projects in P2P because of covid. Since SeedIn lends to businesses with collateral and not to normal people, risk is less.
- compared sa P2P, where we cannot see the lenders' details, details about the companies/businesses are available in the project details and for download in SeedIn.
- short-term projects availability. Projects can range between 1-12 months.
- easy self-verification online. I used my passport and blurred the passport number for privacy but it was still accepted. For bank account proof during sign-up, I just sent a screenshot of my online banking with the account number and blurred the remaining balance.
- very flexible auto-invest function where you can set different parameters such as interest rate, amount, tenure, business nature. Those who have auto-invest function activated gets prioritized on investing on the loan first.
- easy to top-up. You can top-up your account using online banking, GCash or Coins PH. It can reflect almost immediately or up to few hours (when you transfered during non-business hours). When it's not yet reflected after 1 hour, you can contact them and they answer fast.
- they have equal monthly repayments in some projects. You can immediately use the repayments to invest in a new project or withdraw to your bank account. Please click here to check what is the difference between equal and balloon repayments.
- mother company is in SG (SeedIn SG). SeedIn has licenses with the Monetary Authority of Singapore. Please click here to check. It also operates in SG and other Asia Pacific countries.
- fast withdrawal of funds to your bank account/Gcash without asking for documentations.
- unlike stocks, no need na pag-aralan nang sobra to prevent losses. Just make sure you at least read and understand how the thing works in the website's FAQs.
- user-friendly app.
Cons:
- you can only gain 70% of interests since SeedIn automatically deducts 20% WH tax and 10% risk assessment. So for 14% p.a. contract, your take home is 9.8% p.a. Still not bad, right?
- due to the growing number of investors, it's harder to invest in SeedIn projects nowadays and whenever there's manual investment for a project, both the app and the website hangs as the system cannot handle it.
- secondary SEC license not yet approved, but please read below for more info.
- if a company defaults on a loan (meaning, they cannot pay the loan back), SeedIn cannot guarantee the return of your interests or all or part of your investment on that particular loan. The good thing is these companies or businesses had pledged collaterals upon applying for the loan. Probably, worse case scenario is return of capital lang without interest. That's what also the 10% risk assessment fee is for.
SeedIn and SEC Registration
SeedIn PH is registered in SEC. Please check here and enter SeedIn Technology in Company Name:
Since crowdfunding is a bit new in PH, their secondary SEC license to solicit funds is not yet approved, but they have already applied for it and waiting for approval. However, they said that they can still operate in PH even without it because of this SEC's rules and regulations for crowdfunding.
Note: Choose INVESTOR during sign-up and NOT Issuer. It's also better to use email registration when signing-up since Facebook registration has some known issues.
Disclaimer: any investment has risk. Just do your homework and research about it before investing. As the experts say, invest only what you can afford to lose and not your emergency funds. Diversify your portfolio and don't put all of your eggs in one basket.
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