What would you like to know?
What Is Peer-to-Peer Financing?
P2P Financing is already a well-established concept in the USA, UK, and China, amongst many other countries. It is an online marketplace, generally for SMEs seeking an alternative source of financing.
Through P2P Financing, the SMEs or the Issuers, have greater access to funding for their business growth, whilst the Investors are provided an alternative investment opportunity for attractive returns from their investments.
What Does B2B Finpal Offers?
B2B Finpal is a registered market operator for P2P Financing Platform, providing SMEs in Malaysia an alternative source to raise funding, whilst offering the Investors the opportunity to invest in the business needs of these SMEs.
In this respect, B2B Finpal’s principal role is to:
A) Perform introductory functions on behalf of prospective issuers and investors for the issuance of notes
B) Operate the financing platform to ensure a streamlined process for the issuance of notes
C) Facilitate the payments and collection of sums due under or in connection with those Notes
Is My Personal Information Kept Safe & Confidential ?
Your information will be shared with relevant parties on need basis only unless an explicit consent has been granted by you. All parties involved are subject to the confidentiality clause in the agreement.
Will there be many administrative procedures and paper work?
B2B Finpal’s P2P Platform is a simple and easy to use web-based application. Administrative procedures and documentations are inevitable but our user-friendly system will guide you through the entire process. For further guidance, please contact our Customer Support Service team
II. Getting Started
Am I eligible to apply as Issuer over the FinPAL’s P2P Platform?
Currently we extend the service only to the existing suppliers of major retailers within B2B Commerce EDI platform.
Additionally, you shall be:
A) Incorporated in Malaysia;
B) Either a sole proprietorship, partnership, incorporated limited liability partnership, private limited company or an unlisted public company;
C) Not a public listed company or its subsidiary;
D) Has not hosted in other P2P financing platform for the same purpose.
Subject to our due diligence checks and credit assessment on case-to-case basis.
How do we apply for the P2P Financing?
A) Simply click apply as Issuer and create your application.
B) Fill out the application form and upload the required documents onto the Platform.
C) Upon approval, we will send you an Issuer Agreement with the details of your assigned risk grading, applicable interest rate and issuance limit, within 3 Business Days.
D) Once you agree with the terms and submit the Issuer Agreement, you may list Issued Note on our Platform.
E) Please note a Collection Trust Account Number will be provided to you for your future repayment.
What are the documents required?
Depending the type of your establishment, the documents that are required include:
A) Certificate of Incorporation / Business Registration / Partnership
B) Most recent Constitutional Document and/or Annual return, including latest Memorandum/Articles of Association Form 13, 24 and 49 as prescribed by the Companies Commission of Malaysia
C) MyKad (Malaysian /permanent resident) or passport (foreigner) for directors and person being authorized to represent the Issuer
D) Latest 2 years audited financial statements
E) Bank statement of key operating accounts for 3 months transaction
F) Letter of authority or directors’ resolution, where applicable
G) Consent for Privacy Notice and for FinPal to run credit checks with Credit Bureau
H) Corporate profile if available
Do we have to go through a credit checks?
We do have to run through anti-fraud and credit assessment on your business before accepting you onto our Platform. We also run through due diligence such as Know-Your-Customer (“KYC”) and Anti-Money Laundering and Counter-Financing for Terrorist procedures as part of the regulatory compliance.
It is a pretty quick and painless process, what you need to do is just follow through our application process, fill up the application form and upload the required documents.
As part of these checks, we may collaborate with our parent company B2B Commerce (for Issues within the B2B Commerce’s ecosystem) for background screening and employ the service of Credit Bureau for credit / trade checks. Please provide consent accordingly.
How long it will take before I can start using your Platform to seek funding?
You may start hosting your Issued Note on our Platform after our approval and your agreement to our terms and conditions. The full credit approval process may take 2 to 3 Business Days, subject to your application details are complete and full documentations have been uploaded.
III. The Product
What type of financing we can get?
We offer 2 types of financing through P2P Platform to meet your working capital needs: Invoice Financing and Short Term Working Capital Financing
|Invoice Financing||Short Term Working Capital Financing|
|Financing Tenor||1 month to 4 months depending on the expected due date as derived from the payment term of the underlying Invoice||Up to 180 days|
|Disbursement||90% of Issued Note Amount with 10% retained as Reserve Amount, to be used for deduction of processing fee, stamp duty, GST (if any), expense reimbursement, interest and penalty interest. The balance of reserve amount if any leftover, will be refunded to Issuer upon full settlement of the Issued Note.||Disbursement rate is subject to tenure financed (90% for tenure up to 120 days and 87.5% for tenure 150 days & 180 days). Balance is retained as Reserve Amount to be used for deduction of processing fee, stamp duty, GST (if any), expense reimbursement, interest and penalty interest. The balance of reserve amount if any leftover, will be refunded to Issuer upon full settlement of the final repayment sum.|
|Repayment Mode||Bullet, and full settlement only||Delayed monthly instalment;For financing up to 120 days (4 months), repayment will be on Bullet basis.
For financing above 120 days, instalment repayment on every 30 days interval, starting from 120th Day. Each repayment tranche represents a Promissory Note under the Financing Request.
|Pricing / charges to Issuer||1.5% processing fee on Issued Note Amount upon disbursement. Up to 17% interest on Issued Note Amount from disbursement date to settlement date, interest rate scale in accordance to risk grading assigned to Issuer||1.5% – 3.0% processing fee on Issued Note Amount upon disbursement. Up to 18% interest on Financing Amount from disbursement date to settlement date of each repayment tranche. Interest rate scale in accordance to risk grading assigned to Issuer|
What is Invoice Financing?
Invoice Financing allows the SMEs to obtain finance upfront from a third party, backing through expected cashflow from their invoices on products and services delivered. Through Invoice Financing, SMEs do not need to wait until the maturity of credit term and rely on their customers’ payment for invoices for business funding. In this essence, Invoice Financing unlock SMEs’ cashflow that tie-up with receivable invoices, with a small cost in the form of fees and interest charge.
In respect of Invoice Financing, what type of invoices does FinPAL accepted for listing of Issued Notes?
We only accept your Sales Invoices, which must be issued to a locally incorporated business, can be verified by us.
In respect of Invoice Financing, what if my customer pays late?
The funding period your Issued Notes are fixed by you when you list the Notes on the platform for Investors’ consideration. Once the Notes are successfully hosted on the Platform, the due date of the Notes will not be shifted in any circumstances. It remains your obligation to settle the Issued Notes promptly by the due date of the Notes, even if your customer is expected to pay late. This is to ensure fairness to Investors who have invested into the Notes based on your risk profile and investment tenor.
Would all the Issued Notes I list be successfully funded?
Your Issued Note will be listed on our Platform for Investors’ consideration / selection, for 3 Business Days. The issuance is deemed successful with a Note issued at the amount of total funding received from Investors (Issued Note Amount), as soon as it receives full funding (100%) of your Target Amount (i.e. amount intended to be raised by you for each Issued Note), or at least 80% of your Target Amount being funded by the end of 3rd Business Day.
In the unlikely event that the minimum funding of 80% is not achieved, we will cancel the listing of the Issued Note, and your issuance is considered unsuccessful.
How soon can I get cash?
You will receive your funding on the next Business Day after your Note is successfully hosted on our Platform.
IV. Rates, Fees & Charges
What are the interest rates and how are they determined?
Interest rate of up to 18.0% per annum, will be charged on the Issued Note Amount from the issuance date to settlement date.
We adopt risk-based pricing, in which your applicable interest rate is determined by your assigned risk grading in accordance with our proprietary credit scoring model.
How would my interest charge be impacted in the event of late payment?
In the event of late repayment, a penalty interest of 8.0% per annum, would be charged in addition to the regular interest, calculated on a daily basis from the date your Issued Note turn overdue to the date of full settlement, However, if you settle the arrears within grace period of 7 calendar days, the penalty interest will be waived.
What are the other costs & fees involved?
Fees that will be charged include:
A) Registration Fee
All prospective Issuer will be required to pay a one-time non-refundable Registration Fee of RM250.00 to register itself into FinPAL’s P2P Platform.
B) Annual Review Fee
All registered Issuers wishing to continue listing their Issued Note(s) shall be subjected to an annual review process to update their credit profile and risk scoring. The review fee is RM125.00 per Issuer annually.
C) Processing Fee
The rate of processing fee chargeable is ranging from 1.5% to 3.0% depending on the type of financing product and the financing tenor.
Please note that all the quote fees, charges and rates above are not inclusive of GST. Where applicable, GST will be levied accordingly.
What is my repayment schedule?
The repayment schedule may be bullet, monthly instalment or delayed monthly instalment, depending on the type of financing product taken.
Can I Make Partial Payment?
Amount due under each repayment schedule shall be fully settled at once. No partial repayment is allowed.
How would I know how much to pay?
Generally, the repayment amount shall be the principal financing sum, according to the repayment schedule. Upon your full settlement, we shall refund you the balance from your Reserve Amount after deducting the interest (including any penalty interest) and any applicable charges, within 3 Business Days.
In the rare event that your Reserve Amount is insufficient to cover the interests and charges due, the differential against the Reserve Amount shall be paid together with your repayment.
You will be able to track your account status and balances on our Platform, any time at your convenience.
Can we make early payments?
Yes, you can make early repayment towards the Issued Note(s) and the great news is there will be no penalty charge on your early repayment, being part of our effort to assist Malaysia SME.
In this respect, the interest on the Issued Notes will be computed on a daily basis from the date of the note’s Issuance until such early repayment date.
What will happen to my Account if I could not pay on due date?
In the event any of your Notes turn overdue, your Account status will become Delinquent, and you will be suspended from any further issuance until such overdue Notes are settled in full.
Please note that a penalty interest will be charged in addition to the regular interest if the Delinquent Notes are not settled within the grace period.
How can I make the repayments?
Repayments shall be made via any forms of fund transfer into a designated Collection Trust Account.
How would I ensure my payment records will be properly updated?
You shall update your payment record through the Platform, allocating your repayment amount towards Issued Notes within the same day. Failure of such, the Platform will automatically allocate your repayment based on the Issued Note due dates and amount.
VI. Other FAQs
Who are the Investor?
Your Issued Note will be invested by a number of investors. These people tend to be high net worth individuals or institutional investor.