Better returns than Singapore Saving Bonds or Banks’ fixed deposits with similar risks
UPDATE: DEC 2019 we received various feedback on the risk involved and requests to meet up for more details. Yes, we welcome appointments and face-to-face meet up to show past cases, the legal documents and the lawyer involved so that we can provide authenticity and clear doubts on the risk involved. Do whatsapp us or call us at 82003255 (James) so that I can answer your queries directly via whatsapp or arrange for an appointment to show you documents and visit our office.
Is 5% a good deal for a capital-protected, low risk loan backed with LTA PARFs as collatorals? 5% is more than any fixed deposits offered by Singapore banks today (Dec 2019 – 1.9% for amount of $50,001 and above)
5% > Fixed Deposit highest offered by bank 1.9% > SSB of 1.76% (ten years)
Many people want low risks savings (such as Singapore Savings Bonds or SSB), with low or zero chance of losing or default, and crave for better yields for such low-risks investments. We want better returns than Singapore bank fixed deposits or Singapore Saving bonds.
This method below is low risks and yet has a better returns’ than Singapore’s local banks (be it UOB, OCBC, DBS or standard chartered bank, Maybank, Citibank, HSBC, RBS, Bank of China, ICBC etc) fixed deposits rate or Singapore saving banks. (Update as of Dec 2109)
Are Singapore savings bonds safe?
Safe as the government. This Singapore saving bonds is considered a loan to the Singapore government and viewed as almost zero-risks.
Many of them turn to Singapore saving bonds by the government, as the chance of losing money in government bonds is very low because it is backed by the government of Singapore.
Are Singapore saving bonds worth it?
I think that the saving bonds returns may not be worth it, given inflation can be higher than the published returns.
The returns of Singapore Savings Bonds or SSB is very low to accompany with the low returns and liquidity. The average interest per year is from roughly 1.52% if the bonds are held for 1 year, to an average of 1.76% if it is held to the full period of 10 years. (From SSB interest rates) (Updated as on Dec 2019)
Less than 2% per annual for 10 years. =(
Low returns on SSB- any alternatives?
Even if you hold it to the end, 1.95% pa is barely sufficient. There is good chance inflation will eat up your ROI (returns on investments).
What if we introduce a type of loan that is higher returns and with similar low risks too?
Better Returns than Singapore Savings Bonds SSB
Singapore loan for car PARF- alternative to Singapore Savings Bonds
The first and biggest benefits of Singapore Saving bonds are low risk, so any loans worth comparing should be low risks as well.
What if the loan is 100% backed by assets we own from LTA (Land Transport Authority of Singapore)?
Do note that these are NOT bonds from LTA, but actually corporate crowdfunding loans from Timely that we backed with PARF assets that can be redeem at 100% from LTA. Do read on to find out how we used PARF to give ourselves risk-free loans to scrap car dealers.
|Amount Needed||$5,000 to $500,000|
|Interest you earn||5% per year|
|Tenure||between 1 month to a year|
|Default Risk||Near to Zero|
This will make this corporate loan higher returns than Singapore Savings Bonds and with similar low risks.
Would this type of loan be considered as safe as SSB by you?
Would you consider this loan if we pay you 5% interest per year? And these plans can be low in tenures, you do not have to hold for long term to enjoy the 5% interest per year, it can be as short as for a few months for your emergency money. The returns will be pro-rated from the 5% p.a. for a suitable tenure of your crowdfunding loan.
How does this loan works compared to the Singapore Savings Bonds?
Singapore saving bonds is considered a loan to the Singapore government, with backing by the financial assets of the Singapore government.
You can consider doing a corporate loan to Timely Enterprise, with the loan 100% backed by the PARF value that Timely can redeem from the LTA, at very low risks.
You will be a CREDITOR, with low risks as your loan is used to buy PARF value of Singapore cars, which is from LTA.
Here is how this SSB Alternative Loan Plan works
- Scrap Car Dealers come to Timely Enterprise for a car loan.
- Timely will offer a loan on 100% of the PARF value that can be redeemed with LTA when the COE is up and the car is scrapped.
- Timely will be the registered owners of the car, means it is the official recipient of the PARF value when the user deregister the car.
- Timely will charge these car dealers an interest.
- When the term is up or the scrap car dealers export the cars, Timely will deregister the car, and get back 100% PARF value from LTA.
- Timely will pay you, the creditor 5% p.a. for the duration of this loan.
AN EXAMPLE TO ILLUSTRATE THIS LOAN:
A car dealer has a deal to buy over a BMW from a driver for $23,000.
He approaches Timely Enterprise. We checked with LTA and learned that this BMW has a PARF value of $20,000 when COE expires in 4 months.
The insurance, transfer fee, and the interests payable are an additional $1500 for the next 4 months.
We offer the dealer a loan of $20,000, he has to pay us the insurance, transfer fee, and the interests of $1500 + BALANCE $3000 payable to us UPFRONT before we pay the driver $23,000 and take over the car as the official owner.
The car is given to the scrap car dealer, to be used and exported by the time COE expires. We have collected our interests, our costs, and only need to wait for LTA to refund the PARF when the COE expiration is up.
BONUS: The chance of these loans going wrong are very low.
What is the PARF value of a car?
When you buy a new car, you have to pay Additional Registration Fee (ARF) which is like a tax imposed. When you deregister your car, you will get back the minimum PARF rebate. The PARF value can be known before you buy over a car by checking online https://www.onemotoring.com.sg/content/onemotoring/en.html
This PARF value stands for “Preferential Additional Registration Fee” and is held and refunded by LTA.
Timely is only exposed to the value of the PARF which is backed by the LTA and has no loan, no exposure to the metal or scrap value of any cars for these loans.
Why does scrap car dealers need these loans?
Because they are small with limited capital and has profitable cars on the table.
Scrap car dealer only buys over an old car to deregister and scrap if they have a ready export market buyer. When they face such a deal, it is profitable. Unfortunately, there are more good deals than the capital they have, hence if they have access to capital, they can work out their maths and do more business and make more profit, even if they have to include the extra interest costs payable to Timely Enterprise Pte Ltd.
Having questions what if the scrap cars they buy over are hit with extremely bad luck? Will it affect Timely or creditors?
Here are what happened if the cars met with unfortunate incidents.
Low risks of these Singapore corporate loans
You can see from the worst-case scenarios below, you will get back 100% of the loan because Timely loans are only on the monetary value of the PARF value of the car.
What if the car met with a horrible car accident after the loan?
The scrap car dealer will scrap the car. We will get a 100% loan amount by redeeming the PARF value from LTA.
What if the car is stolen?
A police report will be made, and 100% of the loan will be taken back from redeeming the PARF value from the LTA.
What if the car is misused by the user (scrap car dealers) for crime, such as drug offense?
A police report will be made and 100% of the loan will be taken back from redeeming the PARF value from the LTA.
What if LTA has no money to pay back the PARF value?
In this extreme example where the Singapore government is unable to fulfill the obligations it promised 10 years ago (assuming the car has 10 years COE), then the Singapore dollar is useless at this point and probably only gold, silver, bitcoin and the US dollar is worthwhile to keep.
The Singapore government has been strong on its financial reserves and commitment.
As you can see, these loans are made on the PARF value of the Singapore registered cars to scrap car dealers, and the money will be 100% returned by LTA to the PARF owner (which would be Timely).
The risks, in our opinions, are close to zero.
You do face 1 counter-party risks of Timely Enterprise Pte Ltd not making good on our promise. That is why we aim to have a transparent contract showing you all our deals. You only place your money when there is a ready deal available with the car dealers. Do know more about us before partnering with us. Scroll to the end to contact us directly via whatsapp or email.
Is this a form of Crowdfunding for corporate loans?
This is Timely’s way of explaining how this business crowdfunding works, and this crowdfunding loans will be paid fully back, as the assets are safe. We have been working on this traditional business for some years and the returns are decent and reasonable given that our own capital are protected and secured.
Hence we open this crowdfunding loans to our friends and we earn a small middleman fees for handling this.
Other benefits of Timely Corporate Loans.
Tenure is short, from 1 month to a few months (usually less than a year)
Low starting costs: We accept creditor who is keen to learn by starting small- $5000 to $500,000 is accepted. (Any individual is capped at $200,000 investment in Singapore Saving Bonds, they are not allowed to invest more than that in SSB)
Cons of our alternative to SSBs
We only require $500,000 for tranche 1 as we work with a small group of scrap car dealers. Once we reached, we will stick to the original creditors.
We currently have a small group of creditors who are recycling their cash with us periodically, earning higher rates than other Singapore’s fixed deposits.
What is Timely Enterprise Pte Ltd?
We used to run car rental agencies and pivoted to providing hire purchases for Singaporeans needing cash for their cars. A large amount of our business is Grab drivers (and ex-Uber drivers).
After in the business for 3 years, we spotted the niche of providing capital to scrap car dealers. This has been highly profitable for us so we decided to open tranches to get more capital because there are so many additional profits left on the table due to many scrap car deals available. This is so profitable we have ceased all other loans and focused on only financing scrap car dealers.
Why should we trust Timely?
Timely is created by business owners who are in the car industry for a long time, we have been operating branches of business in car rental, car dealerships, general insurance agency and hire purchases.
Our directors have their personal assets marked for Timely, and we will make sure Timely grows conservatively in the decades to come.
Is this better returns than fixed deposits from Banks?
Yes. There are no fixed deposit that has a return more than 5% per year. As of 24 September 2019, we have checked all the local banks with SGD fixed deposits, there are no returns that are even near to 4% per annual.
Fixed deposits returns are lower than our Timely PARF loans. Our loans are secured and safe because we only lend out the PARF value of the assets. 100% of the loan are backed up by LTA’s PARF value which would be in Timely Enterprise Pte Ltd’s name. Do meet up with us directly for us to show you our assets and measures we have taken to let our existing clients help us generate returns better than fixed deposits or Singapore saving bonds.
This will be a safe and a great return better than banks’ fixed deposits in Singapore.
Contact us to know more on alternative loan with higher returns than SSBs
Are you keen to know more and take a look at our past 3 years records to see why we are keen to expand? Whatsapp or call James now at 82003255, or email us at email@example.com
Please whatsapp saying you are keen in the PARF loan of 5%!