CoAssets 101

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    After project ends
    • In the event of default, what are the measures that CoAssets offers to investors to recover the loan?

      T: Maturity Date
      T > 0 to 30 days:  •CoAssets will schedule a face to face meeting to remedy the default.
       •Restructure the loan if possible.
       •The affected investors will be informed.
      T > 31 to 60 days:
       •A third-party professional debt collector will be hired to collect from the borrower the unpaid amounts.
      T > 61 to 90 days:
       •CoAssets will obtain the Power of Attorney from the affected investors to act on their behalf.
      T > 91 days upon maturity:
       •Commence legal proceedings against the borrower.

    • What are the costs to be borne by investors for the services provided by the third-party professional debt collectors?

      The borrower will bear all costs and expenses incurred in relation to the services provided by the third-party professional debt collectors.

    • What are the costs to be borne by investors for legal proceedings?

      Generally, the legal costs for enforcing a promissory note without trial or other complications can range from S$5,000/- to S$50,000/- depending on the value of the outstanding amount. In the event that any interlocutory application and/or trial is required for the matter, the legal costs can escalate depending on the complexity of the defences raised and the number of witnesses called. CoAssets will seek the consent of all affected investors before proceeding with any legal action.

    Interested in an offer
    • Are my monies guaranteed or protected?

      There are risks associated with investing in the projects, and all investors must accept such risks and assess their suitability in order to participate in all projects listed on our platform.

    • How can I fund a project on CoAssets?

      All members must complete the onboarding process before they are allowed to invest in a project. The onboarding process will require all members to complete the " Know Your Client " (KYC) process, as well as a Knowledge and Suitability Test.

    • What are the modes of funds transfer?

      All funds transfers relating to funding activities on the CoAssets platform are handled by a licensed escrow Agent. After indicating the interest to participate in funding, funds transfer can be effected using FAST (Fast and Secure Transfer) transfer or Cheque. Funds transfer instructions will be provided to qualified investors should they choose to invest in a project.

    • How will I get my money back?

      All investors will be notified when the project is maturing. All funds transfer will be managed by the escrow agent.

    • Are the funds held by CoAssets?

      No. They are held by a licenced escrow agent.

    • What is the scope of due diligence conducted on a potential borrower?

      Upon a Borrower submit a loan application on the Platform, CoAssets Credit Assessment Team will conduct due diligence on the borrower. Due Diligence is a process of verification, investigation, or audit of a potential deal or investment opportunity to confirm all facts, financial information, and to verify anything else that was brought up during credit assessment process. Due diligence is completed before a project launches on CoAssets platform to provide investors with an assurance of what projects they are investing in. Due diligence consists a background check on the borrower and its principals (such as major shareholders and Directors). The check includes the following:

      a. Know Your Customer (“KYC”)/Anti Money Laundering (“AML”) Checks. The borrower will also be checked against the Monetary Authority of Singapore (MAS) sanction list. Any negative findings will be flagged out to investors. Negative findings such as:
       (i) Financial Crime
       (ii) Bribery
       (iii) Corruption
       (iv) Politically exposed persons (“PEPs”)
       (v) Fraud or unlawful activity
       (vi) Heightened risk individuals and entities
       (vii) Sanction
       (viii)Adverse news screening

      b. Litigation Check
      CoAssets will perform screenings on the borrower to check if there is any litigation filed under the Company or any of its director.
      For an Individual, checks are conducted on the following:
       (i) Bankruptcy Orders/ Petition/ Discharges.
       (ii) All Courts Civil Suits.
      For a Corporate, checks are conducted on the following:
       (i) Insolvency Winding up orders.
       (ii) All Courts Civil Suits.

      Furthermore, CoAssets will examine the historical financial statements and related financial metrics, with future projections using our in-house risk assessment management tool. CRAM is our in-house risk assessment management tool, which was co-designed with one of the big 4 audit firms. CRAM provides an overall risk assessment score, based on weighted basket of Quantitative and Qualitative factors. The Quantitative component is derived from the financial records of the borrowers (financial ability to repay) while the Qualitative component attempts to account for other factors (such as macro-conditions, reputational risk, etc.) that proxies the borrowers’ willingness to repay.