Your investment funds are held on trust on your behalf in a segregated Investor Trust Account which cannot be transferred to FinPAL Accounts. Additionally, FinPAL has entered into a comprehensive living will arrangement with a regional based trustee as part of business continuity plan.

In the event that FinPAL goes out of business or become insolvent (as remote as it may sound), these arrangements will ensure all transactions are settled with no business disruption. The Issued Notes that have been successfully issued on the FinPAL platform will be unaffected with the Issuer’s financing obligation to Investors remain enforceable, and Investors will continue to receive their repayments and returns.

FinPAL does not hold any tangible collateral from the Issuer as a security against the Issued Note(s).

However, depending on the credit assessment of the Issuer, FinPAL may request for additional support from the Issuer, in the form of company guarantee or director’s guarantee before approving the Issuer’s application.

In the event of any delinquent and/or defaulted Issued Note(s), FinPAL may incur costs such as legal fees and collection charges in recovering the Issued Notes amount from the Issuer. These costs if incurred, may be reimbursed and deducted from the recovery amount collected from Issuer should the available reserve fund of the Issuer insufficient to cover such costs.

In such cases, Investor will receive the net recovery amount in accordance to his proportion of investment. In any circumstances, FinPAL will use best endeavour to maximise recoveries from Issuer on behalf of Investors.

In view of our greenfield operation, we do not have sufficient transaction histories for meaningful statistic. An indicative probability of default by reference to the statistics of trusted Credit Bureau, as below:

Please note that the probability of default above serves as reference for your investment consideration only and will not necessarily be a reliable indicator of future default rates.

FinPAL strives to keep default rates as low as possible through our tight credit processes, to enable Investors to secure healthy return.

In general, an Issuer is considered to have defaulted when the Issuer fails to repay any of its Issued Note(s) after 90 days from the due date of the said Note(s).

In such rare event, FinPAL will use best endeavour to resolve defaults and/or recall repayment for defaults, including but not limiting to the below:

A) Restructuring the defaulted Issued Note(s) to stretch the repayment periods if FinPAL receives justified request from the Issuer;

B) Pursuing the guarantor for repayments or exercising rights on the guarantee(s) given, if any;

C) Outsourcing to collection agency to pursue fund collection; and

D) Where necessary, taking legal action against the Issuer.

At the same time, a penalty interest will continue be charged on the defaulted Notes (subject to any restructuring and/or recovery terms).

Throughout the process, the investor will be informed on the payment status of the Issued Notes and situation of the Issuers.

An Issuer is considered as delinquent the moment the Issuer missed payment(s) for any one of its issued Note(s). FinPAL will pursue for payment rigorously to ensure that such Issuer will not default on its Issued Notes.

In such event, , the Issuer will no longer be allowed to list any new Issued Note(s) until such a time when the Issuer settles all its delinquent note(s) in our P2P Platform. We will contact the Issuer to obtain an explanation and continually send reminders to the Issuer until their Note(s) is/are fully paid. We may also submit the Issuer’s delinquent status to the relevant Credit Bureaus for blacklisting.

At the same time, a penalty interest (calculated on daily basis) will be charged on the delinquent Notes (if the Notes is not settled within the grace period of 7 calendar days from the due date) to compensate Investors.

Throughout the process, we will keep you as an Investor informed and updated on the progress.

Consistent with our vision in helping SMEs to accelerate their business growth in a sharing economy, Issuer is allowed to make early repayment towards the Issued Note(s) as an effort to save financing costs. No penalty will be charged on early repayment from Issuers. 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.

Prior to being eligible to sign up into FinPAL’s Platform, we will run rigorous due diligence and credit assessment processes on each prospective Issuer, including anti-fraud checks, litigation search, credit screening, financial review and director review.

Our targeted Issuers mainly small and medium enterprises (“SMEs”) that offering goods and services to major retailers and hypermarkets, and mostly the existing customers from B2B Commerce (“B2BC”)’s ecosystem with established service records. In respect of the Issuers from B2BC’s ecosystem, FinPAL works closely with B2BC as a collaborative partner to assist in the initial screening and background checks. In supporting our credit assessment and scoring, we also employ the services of trusted Credit Bureau for independent and objective credit checks.

A rounded assessment through the credit scoring from trusted Credit Bureau, financial statement review and where relevant, enhanced analytics on the Issuer’s transactions within the B2BC’s , forms the basis of FinPAL’s scoring methodology.

Each of the Issuer will be risk-scored and assigned a risk-grading after the credit assessment. The risk grading also determines the applicable interest rate for each financing product. The Issuer will also be assigned credit limit, both at Issuer level and for each type of financing product, based on its financial standing, historical business volume and risk grading.

Each Issuer is subject to on-going monitoring for early detection of any credit deterioration. FinPAL has established a robust framework to support monitoring activities.

You may spread your risks by investing into multiple Issued Notes. Our automated allocation tool, AutoBid, can help you to do this efficiently.

Investing in any investment product places your capital at risk and so does investing Issued Notes through FinPAL. The risk presents itself when the Issuers are not able to fulfil their financial obligations to the investors; may it be due to their internal management problem, or external circumstances such as changing rules and regulation, business environments, political climate and etc..

If you are a foreign investor, you may also experience additional tax liabilities and foreign exchange risks.

Please click here to view our GENERAL & SPECIFIC RISK WARNING STATEMENT to ensure you understand the risk associated in this investment.