WE STRONGLY ADVISE YOU TO READ THE GENERAL & SPECIFIC RISK WARNING STATEMENT (“RISK STATEMENT”) BEFORE PROCEEDING WITH OUR PLATFORM AND RELATED SERVICES (THE “SERVICES”). IF YOU DECIDE TO ACCESS, UTILIZE OR SUBCRIBE TO OUR SERVICES AND/OR INTERACT WITH US, WE DEEMED THAT YOU HAVE UNDERSTOOD AND AGREED TO THE CONTENT OF THIS GENERAL & SPECIFIC RISK WARNING STATEMENT. THEREFORE, YOU SHALL NOT HOLD B2B FINPAL SDN BHD ACCOUNTABLE OR LIABLE FOR ANY LOSS AND/OR DAMAGES INCURRED BY YOU AS A RESULT OF USING OUR SERVICES.
B2B FinPAL (hereinafter referred to as “FinPAL”) currently offers you, together with other investor(s), the opportunity to invest indirectly in Small Medium Enterprise & Industries’ (the SME-ITM”) business needs by financing their invoices.
In this respect, FinPAL’s principal role is to:
- Perform introductory functions on behalf of prospective issuers and investors for the issuance of notes
- Operate the investment platform to ensure a streamlined process for the issuance of notes
- Facilitate the payments and collection of sums due under or in connection with those Notes
FinPAL does not offer any investment products nor any investment advice, but merely as a financing platform operator and facilitator. Hence, FinPAL will not be responsible from any default from Issuers.
As an investor, you need to be aware that you may lose all of your invested sum in a particular invested note. The risk presents itself when the Issuer(s) is/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.
In view of this, such activities may not be suitable for everyone. You may however, spread your risks by investing into multiple Issued notes. Our automated allocation tool can help you to do this efficiently.
2. Your investment in Issued Note(s) may not be Secured
Your investment interest in the Issued Note(s) is/are not secured and may be ranked subordinate to the interests of the Issuer’s other creditors. In the event that an Issuer falls into financial difficulty, goes out of business and/or unable to meet its debts as they fall due, other creditors and debt holders with seniority may be compensated and given priority first. In such circumstances, you as an investor may realize less than your original investment capital.
3. Early Repayment
The Issuer(s) of the Issued notes invested by you may choose to early settle the Notes in order to save financing costs. In such cases, you will get your invested sum earlier together with a proportionately reduced return.
4. No Secondary Market to Trade your Invested Issued Note(s)
There is currently no existing secondary market to trade or sell off your Issued Note(s). Once invested, your capital will be locked into the Issued Notes until the Issuer fully settled the Notes.
5. Investment is Your Own Choice
Upon reading this Risk Statement, if you decide to invest in any of the Issued Note(s) offered on our Platform, you will have done so out of your own will and volition. Unless you fully understand the risks involved and are prepared to take such risks, you should NOT invest in the Issued Notes via our Platform.
6. Consult your Professional Advisers
Please consult your professional adviser(s) in the area of financial, tax, legal or other relevant field of professional(s), in cases whereby you are uncertain about any aspect of the information furnished by an issuer, or are in any doubt as the next course of action of your endeavour into investing through our platform.
7. Credit Screening
FinPAL performs a stringent due diligence screening and credit scoring on every SME before we onboard them as Issuer.
Our targeted Issuers are generally FMCG suppliers offering goods and services to major retailers/hypermarkets and related sectors, with established operations records. In supporting our credit scoring, we employ the services of trusted Credit Bureau for independent and objective credit checks.
In respect of Issuers who are also the existing customers within B2B Commerce’s ecosystem, FinPAL works closely with B2B Commerce as a collaborative partner to assist in the initial screening, background checks, and monitoring of business performance for early detection of any sign of credit deterioration
8. Practice Good Investment Habits
You are not advised to participate in this platform with an optimistic view of high returns alone without considering the downside of the investment risks. You should only invest within your financial means and not any more than what you can afford personally to the extent that your investment in this platform affects your current lifestyle and standards of living.
9. Information About Issuer
There could be limited financial and trading information about the Issuer available on the platform. These disclosure of information might / might not be sufficient for you to reasonably make fully informed investment decisions and/or assessments of the Issuer and its Issued Note(s) being offered to you.
In addition, some of the Issuers, especially those which are sole proprietor(s) and/or partnership(s), may not be subjected to statutory audit of their financial statements. Updated and latest management accounts furnished to us might also present the same challenge. We would wish to highlight that the financial health of an Issuer may not be accurately reflected by unaudited financial statement.
Therefore, depending on your risk profile, it is your responsibility as an Investor to select the right type of Issued Note(s) by any Issuer(s) according to your risk appetite.
10. Past Performance
Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting an Issued Note. You should not rely on any past performance as a reliable indicator nor as a guarantee of future investment performance.
11. Performance of Contractual Obligations by the issuer(s) dependent on Other Parties
The ability of the Issuer(s) to make payments in respect of the Issued Note(s) may depend upon the due performance by the Issuer’s Buyers in fulfilling their respective obligation. Whilst the non-performance of any relevant party will not relieve the Issuer of its obligations to make payments in respect of the Issued Note(s), the Issuer may not, in such circumstances, be able to fulfil its obligations to you.
12. Living Will Arrangement
FinPAL has entered into a comprehensive living will arrangement with a regional based trustee as part of business continuity plan.
Under this arrangement, in the event that FinPAL goes out of business or become insolvent (as remote as it may sound), the notes that have been successfully issued on the platform will be unaffected, the Issuers’ financing obligation to investors remain enforceable and investors will continue to receive their monthly repayments.
13. Law and Jurisdiction
As a registered market operator for the P2P Platform, FinPAL is governed under Guidelines on Recognized Markets (Section 13: Peer-to-Peer Financing Platform) of Securities Commission of Malaysia (the “P2P Guidelines”).
By investing in our Issuer’s Issued Note(s), your investment will be subject to the laws and regulations of Malaysia. For foreign investors, you may also be subject to additional tax liabilities, transaction costs and capital controls applicable to you based on the country of your tax residency status.
Applicable law(s) may change from time to time. Your investment terms and conditions shall be based on the law in effect at the date of the Issuance of the Issued Note(s) [or as otherwise specified] (the “Issued Date”). No assurance can be provided with regards to the plausible impact and effect from conceivable judicial decision or amendment to the law or administrative practice after such Issued Date.
You are strongly advised to seek independent professional advice if you do not fully understand the risks of investing in the Issued Note(s) offered on this Platform or any of the statements above.