These are the things that “Side Hustle MFI One-Year US Dollar Bond” can do, and we are dedicated to being the first “online financial management” solution in your life. In addition to opening the path of compound earnings for newcomers, we also create stable alternatives such as securities and fixed deposits for busy employees who have to find a good work-life balance every day.

Young generation that is filled with “investment anxiety”.

“I know the power of compound interests and the importance of making money from money, but I’m already very busy with my work and I really don’t have time to do it”.

“I know I am not prepared, and if I invested in the stock markets, I would only be a retail trader exploited by the professional traders.”

“I know fixed deposit rates can’t keep up with inflation, but what can I do?” 

 

We just want to say: You are already great if you would worry about these things! And, you are not alone.

 

According to the statistical data of Taiwan Stock Exchange, in 2018, the number of investors under 30 years old who opened accounts in Taiwan accounted for less than 10% of all investors, and the majority of investors were over 60 years old. Needless to say, there are two reasons why young people do not invest: lack of capital and insufficient information.

 

That is to say, most people are actually the same as you: having the desire but lacking the time and energy.

 

Knowing that you are not the only one who has such anxiety, it seems that …… a little more at ease? But in the markets, there are lots of investment products such as endowment insurance, fixed deposits, and other more conservative tools. But those are quite different from what we generally believe how to become rich: “Accumulation of wealth” and “Money begets money”.  Therefore, most of the young generation can only see their property in the era of inflation, shrinking. (Extended reading: How about insurance for savings? In 6 years, your interest rate is lower than a fixed deposit).

 

After doing your homework, you will find that there seems to be only one choice at both ends of the investment spectrum: super risky but highly rewarding, super safe but always losing to inflation.

 

Stability, security, simplicity: No more being chased by the anxiety of the three main features

Side Hustle MFI’s one-year U.S. Dollar Bond seeks to fill this gap in the market by giving participants low entry barrier of a zero-share transaction with a relatively predictable and lucrative pay out, and the best part: Anyone who knows how to shop online can open an account right away.

 

Feature 1: Vibrant emerging markets and stable product attributes

 

Side Hustle MFI is an emerging microbank headquartered in Phnom Penh, Cambodia, with its main focus on SMEs loans, personal credit loans, start-up loans and property loans.

 

Cambodia’s annual GDP growth rate is approximately 7% from 2011 to 2019. In 2021, despite the recession due to the epidemic, all visitors entering Cambodia are currently not required to be quarantined. The World Bank expects Cambodia’s GDP growth rate to reach 4.5% in 2022 and continue to grow at a high rate in subsequent years.

 

It is widely known that interest rates on deposits are slightly lower than the economic growth rate, which means that in Cambodia, the interest rate on US dollar fixed deposits alone is close to 7%.

 

 

So, what does it mean to “buy Side Hustle MFI one-year dollar bonds”? Certainly, it’s not a fixed deposit with Side Hustle MFI, but rather another category that is highly correlated with deposit rates: loans.

 

The Project participants became creditors by purchasing U.S. dollar denominated bonds issued by Side Hustle MFI, and authorized Side Hustle MFI to lend to the appropriate customers and prospects and to receive an appropriate percentage of the return from the lending.

 

Feature 2: Collaboration with regulatory authorities to provide exceptional risk control and protection.

 

The money Side Hustle MFI receives will be invested in developing economies that are booming with small and medium-sized enterprises (SMEs) that are not as high-end as we would like them to be. It may be a wholesale retail store, or a motorcycle repair shop, or a fried chicken stand. But what we see as “small businesses” can often generate 100-500% annual revenue growth for diligent small business owners.

 

Of course, all company operations carry certain level of risks, and in order to reduce the risk for the Project participants, all capitals used to purchase the bond will be deposited into a dedicated trust account for Side Hustle MFI USD bond, which not only increases the transparency of the Fund, but also allows for better use of the fund through the system.

 

Under the Trust Agreement between the two Parties, any withdrawal from the account must be reviewed by the Trust Company to ensure that it is consistent with the purpose of use and to validate proper risk control before consent is given for the transfer of the capital.

 

Feature 3: Purchase, interest allocation and payment withdrawal: Easy to understand at a glance

 

The participants in the program lend money to Side Hustle MFI, which lends money to small business owners in emerging markets at a higher interest rate; the money is distributed quarterly at a 5.5% annual rate and redeemed at maturity with no additional conditions.

 

There are no confusing multi-year redemption plans, no amount thresholds, and no complicated market trends and terminology. As the name of the program suggests: One year, USD, and Bond.

What are the selling points of this DIVID project?

1. Available for small investments
2. Reasonable and feasible methods of profitability
3. Complete and transparent disclosure of payment allocation information
4. Remove the middlemen, profit structure simple
5. Risk diversification with guarantees

Why should you participate in this Project?

1. Since a technology company with 20% annual growth is a good target, a chicken stall with 100% annual growth is not necessarily a bad choice.
2. The principal income will be fully denominated in US dollars, so there is no risk of exchange differences (of course, if you convert from Taiwan dollars to US dollars, there will still be exchange differences; please make your own assessment).
3. This Project opens up a number of exclusive opportunities for financial institutions and interest rate matching levels.
4. Unique and rare trust mechanism that protects not only the Promoter but also the Project participants.
5. Annual return rate of 5.5%, with distribution in six months and redemption in one year.

Fund Product Specifications

• Currency: USD
• Total Fund Raised: USD400,000
• Minimum Subscription Amount: USD1000
• Contract Period: 12 Months
• Annual Interest Rate: 6%
• Dividend Distribution Date: Dividends will be paid on 15th day of the seventh month for the first six months, then distribution every 3 month on the 15th day.  
• Application Fee: NTD0 (Excluding payment processing fees)
• Performance Management Fee: NTD0
• Default fee for early termination: 5.88% of the principal amount will be charged and deducted from the principal amount of the deposit which should be returned to the customer.
• Remark: If the contract is terminated before maturity, we will return the money to the original remittance bank and the account with the same name. No remittance will be accepted to the account with the same name in other countries.

Media Coverage

About the Promoter

 

Side Hustle MFI is a microbank headquartered in Cambodia as well as a technology company providing digital financial services. 

Side Hustle Microfinance is committed to building a healthy fintech foundation to facilitate overall transaction efficiency and drive fintech development in Cambodia. We will focus on converting offline payments to online payments, creating a cashless lifestyle urban application, and obtaining the state-licensed cryptocurrency issuance rights and the national permit of the STO (Security Token Offering) financial environment.

Now in Cambodia, there are both developing economic structures and advanced foreign financial systems. Many commercial banks and financial institutions are providing modern banking services to the “qualified” people. However, more than 70% of the population still does not have access to financial services through formal institutions.

By focusing on a small number of key financial services, through digital technology and light assets, we are confident that we can be the best market solution ahead of traditional financial institutions. Through data and analytics, we are developing services with discretion and agility to become the leading digital financial institution in Cambodia.

• Promoter: Side Hustle Microfinance PLC. (Microfinance Institute)
• Place of operation: Cambodia
• Location of headquarters: Cambodia
• Official Website: https://shmicrofin.com/
• Registration Date: July 23, 2021
• No. of Employees: 20

Risk Assessment and Challenges

• The economic growth has been revised downward due to the impact of macro economy, resulting in severe profit loss than expected. What should we do?
  Domestic risk control: The political regime is stable, similar to that of Singapore and the Chiang Kai-Shek era, thus ensuring policy consistency.International Risk Control: The use of U.S. dollars throughout to reduce shocks, and planning a portion of it for lower-risk fixed deposits and SME lending.
• What happens when the borrower’s repayment rate is not as high as expected?We adopt a diversified fund allocation approach to spread risks beforehand, and conduct strict screening and guarantor system to sieve out high-risk customers.
  In addition to the credit facilities, the borrower will be required to provide collateral (land, properties) and Side Hustle MFI will enter into a trust agreement with the borrowers for the collateral: that is, in the event of default, Side Hustle MFI will be able to dispose of the assets directly without legal proceedings under the trust agreement.
  
  At the same time, for each loan, the interest rate will be higher than the project’s interest rate, and after deducting the fixed profit, the excess will be credited to the retained earnings, which will ensure the earnings of the project participants when some of the borrowers are no longer able to repay their debts.
  
  Afterwards, the project participants remain as creditors and retain the claims of Side Hustle MFI, even though they are not directly facing the borrowers. By using the international custodian bank’s records of correspondence and the Trust Agreement, they will be able to assert their claims against Side Hustle MFI.