How does the Investor Service Fee work?

How does the Investor Service Fee work?

Take for instance an investor who had invested in an unsecured business loan investment campaign and the issuer has a repayment of S$1,000. The net amount of repayment that the investor will receive in this case will be S$990 after accounting for an Investor Servicing Fee of S$10 (i.e. 1% of S$1,000).


The computation can be broken down as follows:


Total repayment amount made by issuer:       S$1,000

Total Investor Servicing Fee payable:               S$10 (S$1,000 x 1%)

Net repayment amount received by investor:    S$990 (S$1,000-S$10)


The Investor Servicing Fee will only be charged when a repayment is made by the Issuer , and will not be charged upfront at the time that the investor makes the investment.