The advancement of technology has made it a lot easier for us to invest our money. One of the results of collaboration between technology and finance is the emergence of online peer-to-peer (P2P) funding platforms. This investment instrument is new compared to other kinds of investment instruments like stocks, mutual funds, etc. However, despite being new, P2P funding platform is considered safe. Even now, there are P2P funding platforms that are sharia-driven, like ALAMI.
P2P funding platforms are safe because they finance MSMEs to develop. They are operating under strict regulations. With various P2P funding platforms available, this kind of investment instrument has garnered quite a massive interest as an investment instrument.
If you are interested to develop your wealth through these platforms, read the following tips on how to safely invest through P2P funding platform:
Table of contents
- How to invest safely through the P2P funding platforms
- Choose platforms that are registered and licensed by the Indonesian Financial Services Authority
- Choose P2P funding with good track records
- Choose platforms that suit your need
- Do your research; Compare and contrast
- Understand diversification
- Consider the earning
- Understand the risk
- About ALAMI Sharia P2P Funding
How to invest safely through the P2P funding platforms
Choose platforms that are registered and licensed by the Indonesian Financial Services Authority
Each month, the Indonesian Financial Services Authority (OJK) publishes a list of licensed and registered financial technology companies. From this list, you can find applications and platforms that are safe. Don’t download the wrong apps from Playstore and App Store.
Choose P2P funding with good track records
The track record of a funding platform is important as a parameter that gives us a sense of trustworthiness. One of the indicators of a good track record is the TKB90, a measurement of the operators to facilitate the settlement of lending obligations within 90 days after the due date, that reaches 100 percent.
Choose platforms that suit your need
One of the easiest ways to measure how much you want to invest and earn each month is by basing it on your needs. In addition, by understanding what you need, you can choose P2P funding platforms that can help you reach your goals. Set your aims, and choose the platforms and the tenors that suit you.
Do your research; Compare and contrast
By doing your own research, you can set your preference and choose the platforms that suit you. When you do your research, you can not only identify which platforms you need but also compare and contrast each platform and instrument. Usually, two main reasons why people choose a particular P2P funding platform are the earning and the proposed concept.
Diversification is one of the strong points of P2P funding because the funders can develop their wealth through several funding campaigns to minimize risks.
Consider the earning
By funding the projects available on the P2P platform, your money will grow and you will earn from it. Therefore, the funding cycle will go on. Also, pay attention to the administration fee that you have to pay. The less, the better.
Understand the risk
Make sure that the risk that you are about to take is well-managed by the funding platform so that you would not need to feel insecure in growing your money through the P2P funding platform. The biggest risk is the non-performing financing or the inability of the beneficiaries to repay their debts. However, this can be avoided by thorough screening by the P2P funding platform. Choose P2P platforms that have the ability and means to analyze each and every potential beneficiaries to minimize the risk.
About ALAMI Sharia P2P Funding
ALAMI is a sharia-based P2P funding platform, licensed and registered by the Indonesian Financial Services Authority (OJK), and regulated under the fatwa of the National Sharia Board – Indonesian Ulama Council (DSN-MUI) No. 67/DSN-MUI/III/2008 regarding Sharia Invoice Financing and the fatwa No. 117/DSN-MUI/II/2018 about IT-based Financing Services based on the principles of Sharia.
ALAMI offers SME financing services driven by sharia principles. The funders give an authority to ALAMI to disburse the funds on their behalf. Later, the funders will receive fees from each funded project.
It operates within the boundaries of the sharia and avoids aspects that are forbidden by the Islamic law such as speculation, uncertainty, and harm. The fees that you return is deducted from the fees received by ALAMI as an agency on behalf of the funders.
The risk of funding through ALAMI is considered low because ALAMI has been able to maintain its TKB90 rate at 100%, meaning that the risk of the non-performing financing is low. You don’t have to worry about your money not returning.
ALAMI’s P2P funding services target Indonesian MSMEs through its invoice financing product. The funds given by ALAMI are typically used by these MSMEs for operational costs and working capital for other projects. The invoice financing gives enterprises flexibility in managing their cash flow.
On its online platform, there are numerous funding campaigns that you can choose. On this platform, ALAMI gives detailed information of each beneficiary.
In summary, ALAMI offers 100% sharia compliant funding with competitive earning and a tenor of 90 days. You don’t need to worry about the quality of the campaigns because ALAMI’s technology analyzes hundreds of data to maintain the quality and credibility of each funding.