Building wealth in the modern age is more accessible than ever, with numerous investment opportunities going online and digital. However, with the increasing number of financial products available, it can be challenging for investors to pick the one that best fits their specific needs. Today, we’d like to introduce debt investment, specifically Guaranteed Investment Notes (GN) and how it fits as part of an investment portfolio.
This article will explore the Guaranteed Investment Note offered by Funding Societies. As an investor, understanding the various opportunities available to you is essential for financial planning and making informed decisions that align with your financial goals. Funding Societies’ Guaranteed Investment Note combines security and potential for growth — offering value to both novice and seasoned investors.
Understanding Debt Investment & Guaranteed Investment Notes
Guaranteed Investment Notes, or GNs are a type of debt investment, but what is a debt investment? Essentially, you as an investor finance a business by providing working capital, and that business pays you back over time. Investment platforms like Funding Societies facilitate this process, and debt investment can take many different forms.
Let’s look at some examples of different types of debt investments. This can include bonds and peer-to-peer (P2P) financing.
1) Bonds
Bonds are debt instruments issued by governments, municipalities, and corporations to raise capital. When an investor buys a bond, they are lending money to the issuer. The issuer, in turn, agrees to pay back the principal with interest. This offers a fixed income over the bond’s term, which can go from a few months to many years.
2) Peer-to-peer (P2P) financing
P2P financing is a form of investment where digital financing platforms and providers like Funding Societies pair up entrepreneurs and MSMEs (Micro, Small and Medium Enterprises) that require working capital with individual investors who are looking for alternative investment vehicles.
What are Guaranteed Investment Notes?
GNs are an extension of our existing products. We provide funding through investment notes issued by MSMEs. Investors fund these notes, and MSMEs repay them on an agreed schedule. Regular investment notes are unsecured, but Guaranteed Investment Notes are backed by a Guaranteeing Entity for extra security.
In case the MSME fails to pay by the agreed due date for more than 15 days, the Guaranteeing Entity will pay the principal and returns owed to the investors. At the same time, the Guaranteeing Entity will obtain the right to claim the debt from the MSME.
Here at Funding Societies, we offer three varieties of GNs:
MBBG (Term Financing)
MBBG is an investment product based on Business Term Financing. The payment structure involves monthly payments of the principal and returns earned over a period ranging from 1 to 24 months. If the borrower defaults or fails to pay, the investment notes are guaranteed by an appointed entity. For more details about this particular GN, you can visit our MBBG help page.
MBSG – Guaranteed Investment Note (Bullet Financing)
MBSG is an investment product based on bullet financing. You invest your money for a set term, typically up to 4 months or 120 days. Instead of monthly payments, you get your entire investment back with returns at the end of the term. Unlike regular investment notes, your investment is protected. If the business you lend to can’t pay you, an appointed Guaranteeing Entity will ensure you get your money back. If you’re interested in finding out more about MBSG, you can visit our MBSG help page.
GN-i – Guaranteed Islamic Investment Note
Guaranteed Islamic Investment Note (GN-i) offers investors variations of the previously mentioned MBBG and MBSG payment products. These products adhere to halal and shariah-compliant investment practices. Visit the GN-i page to learn more about this investment note.
How Guaranteed Investment Can Help in Your Investment Journey
Guaranteed Investment Notes (GNs) offer an alternative to traditional investment notes. With predictable and reliable returns, GNs can be a secure and stable addition to your portfolio.
GNs can provide several key benefits:
Consistent Income Stream: They offer a lower-risk income stream with a reliable ROI which can be valuable for short-term financial needs or to balance out the volatility of higher-risk investments.
Risk Mitigation: By prioritising principal protection and guaranteed returns, GNs help mitigate overall portfolio risk.
Enhanced Portfolio Diversification: The shorter duration of GNs makes them suitable for meeting short-term liquidity needs, further contributing to a well-diversified portfolio.
Achieving Financial Goals: The combination of security and predictable returns complement your other investment options and can be instrumental towards achieving your long-term financial goals.
In essence, GNs provide a secure and reliable foundation for your investment strategy while also offering the flexibility to address short-term needs.
The Funding Societies Advantage
Here’s a list of reasons why you should invest with Funding Societies:
- Reputation, reliability, and transparency
- Ease of use
- Low entry barrier
- Wide range of products from unsecured to guaranteed
- Choices of different tenures and payment duration
- Supporting the SME Ecosystem
How Can You Invest With Funding Societies?
1. Create your profile: Ensure information matches your ID (NRIC for Malaysians, passport for foreigners) and you’re at least 21.
2. Upload documents: Malaysians need NRIC (front & back), foreigners residing in Malaysia need a passport and proof of address (visa, residency pass etc.), and foreigners overseas just need their passport.
3. Verify your email: Click the link in the verification email you receive.
4. Complete the agreement: Log in and fill out the subscription agreement and source of wealth declaration forms.
5. Make your initial deposit: Minimum deposit of RM100 via FPX, online banking, or ATM transfer (cash deposits not accepted).
6. Upload bank statement: Upload a statement showing the bank logo, account number, and your name to set up your withdrawal account.
7. Wait for approval: Funding Societies will verify your documents (2-3 business days). Once approved, you’ll receive a notification and be ready to invest!
Start Your Investment Journey with Guaranteed Investments by Funding Societies
Investing in today’s digital age doesn’t have to be difficult. As the financial market grows more complex, making informed decisions about where to invest your money becomes more important than ever. Guaranteed Investment Notes (GNs) offered by Funding Societies can be a strategic addition to your portfolio. GNs offer predictable ROI, lower risk, and capital protection, making them practical options to help you plan and work towards your financial goals.
Interested in managing your wealth? Explore investment opportunities with Funding Societies and learn how Guaranteed Investments could potentially help you grow your wealth with added security.
