Behind Closed Doors at BigFundr – How Rigorous Checks Keep Your Fixed Investments Safe

Low returns. Slow. Predictable.

These are the terms most often associated with fixed income investments. A place to park your money, not grow it. Reliable, maybe — but rarely exciting.

Enter private credit. 

Private credit is a form of lending that takes place outside the traditional banking system. 

Instead of banks, it’s private investors — individuals, funds, or platforms — that provide the capital. 

The borrowers? Small-to-medium enterprises (SMEs), property developers, or asset-backed businesses that need funding but don’t meet a bank’s increasingly strict criteria. This allows investors to enjoy predictable, fixed returns that are unaffected by the stock market.

What are Private Credit Funds – And Why It Matters to You

Private credit funds pool capital from multiple investors and lend it to vetted borrowers. These loans are often secured by real assets or backed by contractual repayment terms to help minimise risk. 

In return, investors receive regular interest payouts i.e. a source of passive income that can complement a broader fixed income strategy.

Done right, private credit funds offer the kind of return profile that appeals to cautious, income-focused investors: consistent, predictable, and largely uncorrelated to market swings. They're particularly attractive in a climate where capital preservation matters just as much as growth.

Of course, not all private credit funds are created equal. That’s why platforms like BigFundr are stepping in — to bridge the gap between opportunity and trust.

BigFundr’s Due Diligence Process for Fixed Income Investment Opportunities

While terms like “steady returns” and “low volatility” are often used to describe fixed income and private credit, this is only made possible through rigorous due diligence. In the past, lapses in due diligence have led to significant financial losses.

Take the collapse of one of Singapore’s largest oil traders — Hin Leong Trading — for example. 

Through a combination of forgery and creative accounting, the company was able to conceal losses of up to US$800 million while still obtaining over US$3.8 billion in financing from major lenders. The aftermath was severe with several major banks suffering significant losses from the default. 

So, how does all of this link back to fixed income investments and private credit?

One, when investing in a private credit fund — especially one that lends directly to businesses — you are, in essence, becoming the lender. And just like the banks that extended billions to Hin Leong, your returns depend entirely on how well the risks are understood, structured, and managed from the start.

That’s why due diligence can make all the difference between reliable income and potential loss. And it’s precisely how we at BigFundr set ourselves apart: by applying institutional-grade scrutiny to every opportunity before it ever reaches you.

Here’s how we safeguard your fixed income investments:

1. Multi-Layered Risk Review

Before any investment opportunity is made available on the BigFundr platform, it undergoes a rigorous, multi-stage risk assessment. 

At this stage, our team of experienced financial analysts carefully screens borrowers to ensure only well-structured, secure deals advance further. This disciplined approach allows investors to access opportunities that have already been filtered for quality and viability, enabling more confident decision-making.

Once a deal passes the initial screening,our Investment Committee — a panel comprising senior professionals with deep expertise in credit, risk, and real estate will assess and examine each deal in detail. These experts will review factors like a borrower’s financials, loan structure, underlying collateral, and market viability. 

This information is then used to determine  whether the project fits within BigFundr’s risk appetite. Questions like, whether it meets return thresholds and whether any structural weaknesses or red flags are present will be asked. All of which ensures that only opportunities with a robust foundation progress to the next stage of diligence.

2. Legal and Property Due Diligence

After clearing both internal review stages, each deal is subject to full legal and property due diligence. To ensure 100% transparency, these checks are conducted by independent lawyers in the jurisdiction where the property is located.

For example, BigFundr’s Australian projects have all been thoroughly verified by a team of independent legal counsel. These experts have verified that the borrower entity is properly registered under Australian law, that the property is not encumbered by prior claims, and that BigFundr’s charge over the asset is properly documented and enforceable under local regulations.

In parallel, a thorough property assessment is carried out to evaluate factors such as title status, zoning, potential encumbrances, and whether the asset qualifies as acceptable collateral under BigFundr’s criteria. These checks ensure that the real estate backing each loan is legally sound, properly valued, and free from hidden liabilities.

This legal process ensures that every investment is backed by a clearly defined legal framework that protects your investments at all times.

3. Borrower Assessment and Credit Checks

Another key pillar of BigFundr’s due diligence process is a deep evaluation of the borrower behind each deal. This goes far beyond surface-level metrics. Our Credit Assessment Team conducts a comprehensive review of the borrower’s financial standing — including audited financial statements, bank records, and current liabilities.

We also assess the creditworthiness of the borrower’s directors or shareholders, checking their credit scores, past repayment behaviour, and potential red flags. Each borrower is required to provide a personal guarantee, which gives BigFundr the legal right to pursue repayment even in the event of a shortfall after collateral liquidation.

In addition, all of our property factsheets provide investors with a summary of these findings giving them complete visibility into a borrower’s background along with the rationale behind our risk grading. Maintaining this level of transparency allows investors to make informed decisions, backed by the same information reviewed by our credit committee.

Why Risk Management Matters for Fixed Income Investors

Private credit may offer attractive yields, but it's not without its complexities — especially for individual investors. Unlike traditional savings or public market instruments, private credit doesn’t come with the same regulatory safety nets, liquidity, or transparency. This means the burden of risk assessment often falls squarely on the investor.

Without the right safeguards in place, even a high-yield opportunity can expose you to unnecessary risk — from borrower defaults to hidden legal issues. Understanding these risks is the first step to investing smarter. Managing them effectively is what turns potential into performance.

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An Attractive Alternative: How BigFundr Benefits Individual Investors

BigFundr was built to give individual investors access to the kind of fixed income opportunities that were once limited to institutions — but with the infrastructure, controls, and transparency to make them safe, accessible, and manageable.

We’ve designed our platform with risk mitigation at every layer, so investors don’t need to be legal experts or credit analysts to make sound decisions. Whether it’s securing the first legal charge or conducting independent legal checks, each measure is designed to protect your capital while delivering steady returns.

The table below outlines exactly how BigFundr addresses the key risks faced by fixed income investors and why our model is built for long-term confidence.

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Invest in Fixed Income with Confidence with BigFundr

Private credit doesn’t have to be complex. And fixed income investing doesn’t have to mean settling for low returns.

With BigFundr, individual investors can now access high-quality, professionally vetted private credit opportunities that offer predictable income, robust risk protections, and the kind of transparency typically reserved for institutional players.

Whether you're looking to diversify beyond traditional savings, create passive income, or protect your wealth in uncertain times, BigFundr offers a smarter, safer path to fixed income

‍Learn more about what we’re offering today!