Singaporean investors seeking monthly income have choices ranging from MAS-licensed alternative investments to high-yield cash accounts. Kilde is known for private credit income investments in Singapore (targeting 11–15 % p.a. with collateralised bonds), whereas Chocolate Finance offers a flexible cash management solution (~3 % p.a.). This side-by-side comparison covers their yields, security, fees, and liquidity.
TL;DR: The Five Biggest Differences
- Yield: Double-digit coupons (11–15 % p.a.) vs ~3 % p.a. returns
- Asset backing: Secured private loans (with collateral) vs diversified bond funds (no specific collateral)
- Payout frequency: Monthly fixed coupon payouts vs daily accrual of interest
- Liquidity: Fixed terms (3–36 months) with limited early exit vs withdraw anytime (≈3-day processing)
- Regulation & custody: MAS‑licensed (Kilde: CMS deal in securities) with DBS escrow vs MAS‑licensed (fund manager) with custodian accounts
Comparison Table
Business Model & Underlying Assets
Kilde is a private credit investment platform connecting accredited investors to high-yield loans issued by non-bank financial institutions (NBFIs). Investors purchase debentures that fund these NBFI loans, which are senior-secured and backed by cash-generating receivables. These underlying assets include consumer and SME loan portfolios, typically in emerging markets, offering 11–15 % annual yields. Kilde’s MAS licensing and due diligence process ensures that each deal is thoroughly vetted. Essentially, Kilde’s business model is to earn interest from borrowers (NBFIs) at high rates and pass the majority (after a small fee) to investors as monthly coupon income.
Chocolate Finance, by contrast, operates a cash management account model. Customer deposits are pooled and invested into a portfolio of short-term bonds and money market funds. In practice, Chocolate lends your money to governments and corporations via highly liquid bonds. The returns (around 3 % p.a.) come from interest on these underlying securities. Unlike Kilde’s deal-by-deal approach, Chocolate’s offering functions like an enhanced savings account managed by an MAS-regulated fund manager. The platform generates yield by actively selecting investment-grade bond funds globally, adding a bit of duration risk to boost returns. It’s a low-touch, diversified approach: users simply deposit cash and earn a stable rate, with Chocolate handling the fund investments behind the scenes.
Income Predictability vs Volatility
With Kilde, investors enjoy predictable fixed income. Each deal offers a fixed coupon rate (e.g. 12 % p.a.), delivering steady monthly interest payouts into your account. Because these are structured debt investments, the interest payments are contractually defined, resulting in little to no volatility in income, assuming the borrower pays on schedule. It suits investors seeking a stable monthly income stream without market price fluctuations. In other words, Kilde provides a “monthly income investment” experience: you know your coupon rate upfront, and you receive cash flow regularly (much like a bond interest payment). There is negligible day-to-day variation in the amount – it’s passive income that you can count on (barring a default event).
Chocolate Finance provides variable returns that are generally stable but can fluctuate slightly day-to-day. The platform quotes a target rate (e.g. 3 % p.a. on your first S$20k) which it strives to deliver by actively managing bond investments. In practice, users see their balance grow with daily accrued interest, which could occasionally be zero or even a slight dip on a given day when markets drop. Over a longer period, these small fluctuations average out to the advertised yield. Notably, Chocolate has a Top-Up Programme where if the underlying funds underperform the target (up to S$50k balance), the company will top up the difference to maintain ~3 % for a promotional period. If funds outperform, Chocolate keeps the excess up to a limit. This mechanism smooths returns for users, but it’s not a permanent guarantee. The key point: Chocolate’s returns are not fixed but aim to be low-volatility. You won’t get a fixed “coupon” each month; your interest compounds, and the effective rate may vary slightly with market conditions. It’s still very stable (no wild swings) but lacks the absolute predictability of Kilde’s fixed coupons.
Risk Management & Collateral Controls
Kilde emphasises capital protection through strict underwriting and collateralisation. Every borrower on Kilde undergoes rigorous vetting – only about 9 % of potential deals pass Kilde’s due diligence. Loans are backed by collateral: typically a pledge of the borrower’s own loan receivables, with an average 1.6× collateral coverage (i.e. the collateral value is ~160 % of the loan principal). In the event of a borrower default, Kilde (as a senior secured creditor) can enforce rights over the collateral pool, managing or selling the loan portfolio to recover funds. Thanks to these controls, Kilde has maintained a 0 % default rate since launch – every investor has received all due interest and principal so far.
Additionally, Kilde diversifies risk by offering deals across multiple borrowers, industries, and regions, so investors can build a broad portfolio. Hard collateral and covenant monitoring give Kilde investors an extra layer of security: even if a borrower runs into trouble, there are real assets to claim against. Of course, private credit is not risk-free – defaults can happen – but Kilde’s model is designed to mitigate loss severity and keep default probabilities low via careful deal selection and oversight.
Chocolate Finance manages risk differently. Since it invests in high-quality bond funds, the primary risks are market and interest rate risk rather than any single borrower default. The portfolio comprises investment-grade bonds with short durations, which keeps credit risk and volatility low. There is no specific collateral for each user’s deposit; your money is spread across many bonds (e.g., Singapore Government bills, blue-chip corporate bonds, etc.) held via funds. This broad diversification and high credit quality are Chocolate’s form of risk control – it’s very unlikely that many underlying issuers default at once.
Additionally, because the investments are short-term, the fund can frequently adjust holdings to respond to interest rate changes and reduce exposure to any issuer or sector. Chocolate’s risk management also includes maintaining liquidity buffers (they attempted an instant withdrawal feature by pre-funding redemptions, which was paused after an extreme withdrawal surge). While there’s no formal principal guarantee, the nature of the assets means capital stability is expected in normal conditions. Importantly, Chocolate is not SDIC-insured (not a bank), so there is a theoretical risk of loss if the bond funds drop in value. However, the platform’s track record so far shows no losses to customers – the target yields have been met or exceeded, and Chocolate’s top-up policy would have covered any shortfall. In summary, Chocolate relies on diversification and conservative asset selection (plus regulatory oversight) to manage risk, rather than the specific collateral and covenants that Kilde’s deals have.
Regulatory Oversight & Custody
Both platforms are based in Singapore and operate under the oversight of the Monetary Authority of Singapore (MAS), but they are in different capacities. Kilde holds a Capital Markets Services (CMS) Licence for dealing in securities and is an Exempt Financial Adviser. This means that it must meet strict regulatory requirements in arranging and offering its private credit investments, and it can only serve accredited and institutional investors. A key aspect is how client funds are handled: your money with Kilde is securely held in a segregated client escrow account at DBS Bank, administered by an independent trustee (Perpetual Asia). Kilde does not directly hold or control investor funds – the trustee verifies every transfer against platform records. This custody arrangement ensures that even if Kilde were to cease operations, investors’ funds and repayments are ring-fenced and safe at the bank. It’s a high standard of investor protection, akin to how law firms or crowdfunding platforms safeguard client monies. Additionally, being MAS-licensed, Kilde is subject to audits, capital requirements, and compliance with regulations, giving investors confidence that the platform operates soundly within Singapore’s legal framework.
Chocolate Finance is a brand of Chocfin Pte. Ltd., which is likewise licensed and regulated by MAS (holding a CMS licence to perform fund management activities). So, from a regulatory standpoint, Chocolate is a legit financial institution (not just a startup taking deposits). It must follow MAS rules on how it manages investments and client monies. User funds are kept in segregated custody accounts with MAS-licensed institutions. Effectively, this means a custodian bank or trust holds the fund's assets on behalf of Chocolate’s customers. If Chocolate Finance were to go under, those invested assets would still be claimable by customers because they would be separate from Chocolate’s corporate funds. However, an important difference is that since Chocolate is not a bank, funds aren’t insured by the Singapore Deposit Insurance Corporation (SDIC). MAS oversight mitigates the risk of mismanagement, but it doesn’t eliminate investment risk. In practical terms, both Kilde and Chocolate operate under strict Singapore regulations and employ third-party custodians to protect client assets. Kilde uses a DBS escrow for uninvested cash, and its structured note framework for investments reflects a strong trust setup. Chocolate’s use of a custodian for fund holdings likewise protects investors. The main divergence is in scope: Kilde’s licence confines it to sophisticated investors and specific securities deals. Chocolate’s licence allows it to offer a product to the retail public (with appropriate risk disclosures). Both offer transparency about how money flows and is protected – Kilde even states that all investments will be wound down and paid back to investors first, should it ever wind up operations. For an investor, it’s reassuring that both platforms are MAS-supervised; you’re not dealing with an unregulated entity. The custody structures mean you always retain ownership and claim over your funds or notes.
Fees & Net-of-Fee Return
Kilde operates on a transparent fee model where investors generally earn the net return advertised. The platform fee is modest – around 0.5 % per year, which is typically already factored into the yields shown to investors. For example, if a loan yields 15 % to investors, Kilde’s cut has been taken such that you still get 15 % (the borrower might have been charged ~15.5 %). Kilde primarily earns from the spread between what borrowers pay and what investors receive. There are no upfront fees to investors for joining or funding an account, and no transaction fees when you invest in a deal or redeem coupons. Because Kilde streamlines the investment process (connecting investors directly to deals), costs are kept low – they highlight that by cutting out multiple intermediaries, they pass more interest to investors than a traditional fund might. The result is that Kilde’s published returns of 11–15 % are after fees, meaning what you see is what you get in terms of yield. Investors should note, however, that interest is typically quoted on an annualised simple basis; actual IRR could be slightly higher if you reinvest monthly coupons (compounding effect).
Chocolate Finance famously advertises “no fees” to the user. Indeed, you won’t be charged any account fees, subscription fees, or withdrawal fees. How does the company make money, then? Chocolate takes a performance fee only if the portfolio outperforms the promised rate. According to their disclosure, if the underlying funds earn more than the target (e.g. 5 % actual vs 3 % promised), Chocolate keeps a portion of that excess (up to 2 % above the target). It means your return is capped at the advertised rate (you get 3 % while the extra 2 % goes to the platform as revenue). If the funds earn exactly 3 %, Chocolate takes nothing extra; if they earn less, Chocolate even subsidises to meet the rate (during the promo period) – effectively taking a loss to uphold the promised yield. There are also implicit fees in that the underlying bond funds have their own management fees (typically small, maybe 0.2–0.5 %), which are already baked into the fund performance.
However, regarding the user experience, your dashboard yield is net of all those fees. So, while not “free” in an absolute sense, Chocolate’s model aligns with the user: you always get your target rate first, and the platform only profits if returns exceed that. It is why they say, “Chocolate makes money only after you’ve made money”. For comparison, if you DIY invested in similar funds, you might save that performance cut, but you’d forego the top-up guarantee and convenience. In summary, Chocolate’s net-of-fee return is exactly the advertised rate, with no surprises, whereas Kilde’s returns are advertised net of a small fee – both are quite straightforward. Cost-wise, neither platform eats significantly into your earnings: Kilde’s ~0.5 % annual fee is relatively low for alternative investments. Chocolate’s performance fee doesn’t reduce your yield below the target (it only limits upside beyond the target).
Liquidity & Early Exit Mechanics
When it comes to accessing your cash, the two platforms differ significantly. Kilde’s investments are term-based – typically 3 to 36 months in duration. Investors are expected to stay invested until the loan matures to regain their principal. However, many deals come with early redemption windows every 3–6 months to provide some flexibility. At these intervals (often quarterly), an investor may have the option to exit the investment early, usually at no penalty (you get back your remaining principal at face value). The exact terms depend on the deal; some might allow partial redemptions or require finding a replacement investor. Outside those windows, you generally cannot withdraw your money from a Kilde deal on demand. There isn’t a secondary market on the platform for selling your debentures instantly (as is common, since these are private deals). Therefore, Kilde is best for capital you do not need in the short term. You should be prepared to leave the money invested for the full term (e.g. 12 months), or at least until the next redemption window. This illiquidity is the trade-off for earning much higher returns. On the plus side, your monthly interest is liquid – the coupons come to your account as cash that you can withdraw or reinvest anytime. It’s just the principal that’s tied up until exit. Consider Kilde’s offerings like fixed-term bonds: you commit your principal for a set period but get interest out regularly.
Chocolate Finance offers far greater liquidity and is designed to ease withdrawal. There are no lock-in periods – you can request a withdrawal of any amount at any time via the app. Normally, withdrawals up to a certain amount per day (S$20k) were instant or same-day. In contrast, larger withdrawals or those made during abnormal market conditions take a few days to process. Chocolate typically processes all withdrawals in 3–6 business days (often ~3 days). This delay is simply the time needed to sell the underlying fund units and transfer money to your bank account. Importantly, there are no penalties or fees for withdrawing at any time – even if you only stayed invested for a week, you can pull out and keep the interest accrued for that week. It makes Chocolate suitable as a cash parking tool or emergency fund, where access is more critical than maximising yield. The only minor consideration is that because the interest accrues daily and compounds, you won’t specifically “see” a payout until you withdraw, and your balance grows. But effectively, you can treat it like being able to cash out your principal + earned interest whenever needed. Overall, in the liquidity spectrum, Chocolate is very flexible (like a savings account with a short waiting time). In contrast, Kilde is at the more illiquid end (like a fixed deposit or bond, with limited early exit). Investors should align their choice with their liquidity needs: use Kilde for money that can be locked in to earn higher returns, and Chocolate for money that needs to stay accessible.
Ideal Investor Profile
Given their stark differences, Kilde and Chocolate Finance cater to different investor profiles and needs:
Kilde is tailored for Accredited Investors seeking a higher-yield, income-generating investment and willing to accept some illiquidity and risk in exchange for 11–15 % returns. The ideal Kilde investor has a medium to long-term investment horizon (at least 6–12 months, if not 2–3 years) and a tolerance for credit risk (mitigated by collateral). They likely have a portfolio of traditional assets and are adding private credit for diversification and enhanced yield. This investor values monthly cash payouts – for example, someone planning for regular passive income or to supplement their monthly cash flow. They should also meet regulatory criteria (wealth/income qualifications) to be an accredited investor in Singapore. In short, Kilde appeals to those who want to put idle cash to work at high rates and can forego immediate liquidity. It’s often compared with other MAS-licensed alternative investments like private bonds or peer-to-peer lending, but Kilde’s differentiator is the secured nature and institutional-grade process. The typical Kilde investor might be a high-net-worth individual or family office comfortable with fintech platforms and looking for accredited investor income opportunities beyond the low yields of banks.
On the other hand, Chocolate Finance suits a more conservative or broad-based investor profile – essentially anyone with spare cash who wants a better return than a bank deposit without sacrificing liquidity. The ideal Chocolate user could be a retail investor, young professional, or even a corporate treasury manager looking to park short-term funds. They prioritise capital preservation and flexibility: the thought of locking money away or taking on default risk doesn’t appeal to them. They may be building an emergency fund, saving for a near-term goal, or just want their day-to-day cash to earn something. This investor will likely compare Chocolate Finance with options like bank fixed deposits, T-bills, or money market funds. Chocolate stands out to them for its simplicity (easy app interface), no minimum or hoops, and competitive rate (~3 % with no conditions), which is often higher than basic savings accounts. They know it’s an investment (not insured, can have slight fluctuations) but are comfortable that it’s ultra low-risk. In essence, Chocolate Finance is for those who want to “make every dollar work” even when it’s just sitting between expenditures, all while staying liquid. It’s especially attractive for tech-savvy individuals in Singapore who are used to fintech solutions and are looking for convenience and a slightly higher yield on cash. This profile might include non-accredited investors, since Chocolate is open to all and easy to start (just download an app). It’s a good entry-level or parking solution, whereas Kilde is more of a higher-barrier, high-reward investment.
Why Singapore Accredited Investors Choose Kilde
Kilde has rapidly become a go-to platform for Singapore’s accredited investors seeking higher, safer monthly income. It uniquely combines double-digit yields with robust safeguards that instil confidence. Investors appreciate the “11–15 % target yield” on offer – a return typically unheard of in traditional deposits or bond funds – delivered through carefully vetted, senior-secured bonds backed by real assets. Moreover, funds are held in DBS Bank escrow accounts, highlighting Kilde’s commitment to top-tier security and regulatory compliance. The platform’s 0 % default track record further testifies to its stringent risk management and due diligence. In short, Kilde marries private credit's growth and income potential with institutional-grade protections. For accredited investors in Singapore, it’s an opportunity to earn passive monthly income at much higher rates than conventional products, all on a fully MAS-licensed platform. Ready to put your money to work harder? Explore our How Kilde Works page or speak with our team to take the next step toward elevating your portfolio’s income.
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