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Investor FAQs

What would you like to know?

I. General

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 Offer?

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 Note

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.


Also, we have multiple safety firewalls with established privacy procedures to ensure the utmost security to your shared information. For more details on our privacy policy, feel free to read through the Privacy Notice published on our website.

Will there be many administrative procedures and paper works?

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

Do I qualify to be an investor at B2B Finpal’s P2P Platform?

Individuals of at least 21 years old and Corporate are eligible to apply as our Investor. Currently for Malaysian resident only.

Is there a minimum amount I need to invest with B2B Finpal’s P2P Platform?

The minimum investment sum to place with B2B Finpal’s P2P Platform is RM 1,000.

How can I apply as an investor?

A) Simply click apply as Investor 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 Investor Agreement within 48 hours for your execution

D) We shall activate your investment account upon receiving at least RM1,000 of your fund placement into the Investor Trust account.

What documents do I need to supply in order to become an investor?

It depends on whether you are applying as an individual or on behalf of your institution or corporate.

If you are an Individual Investor, please provide a copy of Mykad.

If you are corporate investor, please provide the following documents:

  1. Most recent Constitutional Document, including;
    1. Certificate of Incorporation/Partnership or any other reliable references
    2. Latest Form 24/Form Section 78 and Register of Directors/Form 49 as prescribed by the Companies Commission of Malaysia or equivalent documents for Labuan Companies, or any other equivalent documents for other type of legal persons for identification of Directors/Shareholders/Partners.
    3. Memorandum/Articles of Association
    4. Letter of authority or directors’ resolution, where applicable
    5. MyKad for Malaysian/permanent resident or passport for foreigner of the person authorized to represent the company or business

In addition, depending on your investment sum and/or Investor Category, additional document / declaration may be required. Our online application form will guide you through the documentation that you will need to provide in order to qualify as an investor and comply with our Anti Money Laundering (“AMLA”) and Know Your Customer (“KYC”) procedures.

What is the Investor Category that I am eligible to apply?

  1. The Investor Category is in accordance with your investment limit subject you meeting its respective conditions:
    Retail Investor Advance Retail Investor Sophisticated Investor
    Investment Limit (RM equivalent) RM1,000 to RM50,000 RM50,001 to RM250,000 Above RM250,000
    Conditions Nil
    – Individuals Total Income > RM100,000 Total net personal assets > RM3 million
    – Corporate Total Net Assets > RM1 million Total Net Assets > RM10 million

    In addition, to qualify as Sophisticated Investors, you shall be the High Net Worth Individual or Institution with reasonably investing experience and knowledge, and/or having a track record of investment.

How long will it take before I receive an answer to my application?

You will receive an answer regarding your application within 3 Business Days.

III. My Account

Where are investor fund held?


Your investment funds are held in Investor Trust Account managed by TMF Trustee Sdn Bhd, a licensed trust company in Malaysia.

Do I Receive Interest on my undeployed funds?

To maximise your benefit, we may arrange cash management activities for your undeployed fund maintained in Investor Trust Account. Any interest generated thereof will be subject to the Interest Sharing Scheme with B2B Finpal.

What Happen if I want to withdraw funds from my account?

You can withdraw unutilised funds from your account at any time at no costs. Invested funds or any funds earmarked (i.e. funds promised in investment of Issued Notes, but yet to be disbursed to Issuers) cannot be withdrawn until the Issued Note gets repaid.

You can make a withdrawal request through “Withdrawal” button on your dashboard. Upon receiving your request, we will process your withdrawal within 3 Business Days.

IV. Investing Through P2P Platform

How can I view the Funding opportunities?

Funding opportunities i.e. Issued Note listings are available for viewing once you sign up and place an investment sum with us.

How Do I Begin Investing?

Once your investment account is activated please use the following steps to begin your investment in P2P Platform:

A) Sign into your account.

B) Go to the ‘Issue Note Offered’ section to view the ongoing funding opportunities.

C) Click on the “View Details” of your interested Issued Note to view the Factsheet which provides details of the Issued Note and business.

D) Click “Invest” on the Factsheet, and input the amount you want to bid for the interested Issued Notes. Enter the OTP verification code and click on “Bid” to complete.

E) Alternatively, you may empower and authorise our Platform to select Issued Notes on your behalf automatically through our “AutoBid“ in accordance to your pre-defined investment criteria.

What is AutoBid and how it can help me in the investment selection?

You can easily control your investment parameters through AutoBid, pre-setting your target return, duration, exposure limit, risk appetite, and other parameters. The AutoBid will automatically place bids on behalf of you based on your pre-set criteria. These settings can be updated as often as you like.

What is the minimum amount that I need to place for each Issued Note?

The minimum amount that you may place for each Issued Note is RM100.

What Are We Investing In?

You are investing in the business needs of Malaysia SMEs who are primarily FMCG suppliers to major retailers/hypermarkets and related sectors with established operation records.

All Issuers must pass through our stringent due diligence and credit checks

Can I Know the Name of Issuer I Invest In?

In order to protect the Issuer’s business interest, we are unable to broadcast the identity of the Issuers. However, we will provide a detailed fact sheet about our assessment of the Issuer.
Investors may contact us for further information and we would strive to furnish the requested information on a best-effort basis.

What is the maximum amount that I need to place for each issued note?

No restriction as to the maximum amount that you can place for each investment / Issued Note, subject to the investment limit in accordance with your Investor Category.

You may specify the maximum amount for each investment / Issued Note in the AutoBid setting.

As a form of good investment practice, we strongly encourage you to diversify your investment across multiple Issued Notes.

What will be the general investment tenor?

Depending on the type of financing product you wish to invest, the investment tenor may range between 1 month to 6 months.

To obtain a longer tenure return, you can always reinvest your fund upon you receiving back your investment and returns, into other Issued Notes, subject always to the availability of the Issued Note opportunities that match your investment criteria.

What Currencies I can Invest in?

We currently offer Issued Notes denominated in RM only.

How are the pricing of issued note is determined?

We adopt a risk-based pricing approach through our proprietary risk scoring model. Each Issuer will be assigned a risk grading after our detailed assessment of its financial standing and credit worthiness. The assigned risk grading for each Issuer will determine the applicable interest rate for its Issued Notes.

As for most investments, higher return come with higher risk. We assign higher interest rates for the lower risk grading Issuer to compensate for the higher risks that investors assume.

How long is each issued note open for my investment decision?

Each Issued Note is listed for your investment decision for 3 Business Days or up to the deadline as specified otherwise on the Issued Note Offer (Hosting Period) or up until its subscription reaches 100% of its intended funding (“Target Amount”), whichever is earlier.

The Issued Note is deemed successfully hosted and we will disburse the fund to the SME only, if the subscription for the Issued Note reaches a minimum 80% of the Target Amount by the end of Hosting Period. Otherwise, we will cancel the listing of the Issue Note.

Please also take note that all investment will be allocated on a first-come-first-serve basis.

Can I withdraw my investment decision?

Once you select and confirm your investment (whether through manual selection or via AutoBid selection criteria), you have made a promised financing to the Issuers. To ensure fairness to the Issuers and other Investors, you would not be able to withdraw your investment decision as any withdrawal would disrupt the funding process. Not forgetting the other investors who may have wanted to invest in the same Issued Note, but were unable to do so under the first-come-first-serve system.

Hence, kindly review your investment selection carefully before confirming your investment.

How frequent will I get my returns and investment back?

You will only get your returns and investment back upon Issuer’s repayment.

Repayments from Issuers are due on a date predetermined upon its hosting onto our Platform. The system is auto-updated with repayment status on daily basis, in which you may view by login to your account.

V. Product

What are the financing products available for investment?

B2B Finpal currently offers 2 types of financing products: Invoice Financing and Short Term Working Capital Financing, the key product characteristics of which as below:

Invoice Financing Purchase Financing Short Term Working Capital Financing
Financing Tenor 1 month to 4 months 1 month to 4 months Up to 180 days
Repayment Mode Bullet Bullet or monthly instalment, fixed by Issuer, prior to Notes hosting. Defined 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.

Click here for more details about the product offering.

VI. Return & Charges

Are there any fees or charges involved on Investor?

B2B Finpal does not charge Investors a fixed fee. Instead, B2B Finpal operates an Interest Sharing scheme with the Investors. The sharing ratio to Investors varies according to the source of interest collected.

Source of Interest Collected Sharing ratio to Investors Sharing ratio to B2B Finpal
Invoice Financing 70% 30%
Purchase Financing 70% 30%
Short Term Working Capital Financing 70% 30%
Bank interest on unutilised fund 70% 30%

What is the expected return on my investment?

The returns of each investor differ case by case, based on a range of factors e.g., market condition, your choice of Issued Notes, total investment size and level of diversification etc.

In view of the Interest Sharing Scheme with B2B FinPal, your net expected return could be calculated based on the suggested formula below:

Net expected return for each financing product type* = sharing ratio to Investor % of Interest rates of selected Issue Notes

*Subject to all the Issued Notes invested are performing and non-default.

Since the investment tenor is relatively short term, investors are encouraged to re-invest, to increase the potential overall returns on your investments.

Is My Investment Return Taxable?

The taxability of the interest income depends on each Investor’s tax position.

Kindly consult your tax / financial advisers for independent professional advice.;

VII. Understanding Risk

What is the risk of investing via B2B Finpal P2P Platform?

Investing in any investment product places your capital at risk and so does investing Issued Notes through B2B Finpal. The risk presents itself when the Issuers are not able to fulfill 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..
Please click here to view our GENERAL & SPECIFIC RISK WARNING STATEMENT to ensure you understand the risk associated in this investment

How Do I Minimize the Risk?

You may spread your risks by investing into multiple Issued Notes. Our automated allocation tool, AutoBid, can help you to do this efficiently whilst managing risk,. through setting your acceptable risk appetite and capping your exposure by risk grade (as % of total investment), per Issuer (as % of your total investment) and per investment (maximum value per Issued Note) basis.

How do you assess the creditworthiness of Issuers?

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/ hypermarkets and related sectors. In supporting our credit assessment and scoring, we employ the services of trusted Credit Bureau for independent and objective credit checks. In respect of the Issuers who are also the existing customers within B2B Commerce (“B2BC”)’s ecosystem, FinPAL works closely with B2BC as a collaborative partner to assist in the initial screening and background checks.

Each of the Issuer will be risk-scored and assigned a risk-grading following the rounded 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. B2B Finpal has established a robust framework to support monitoring activities.

What happens in the case of early repayment from Issuers?

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.

What happens if Issuer missed payment on the due date?

An Issuer is considered as delinquent the moment the Issuer missed payment(s) for any one of its issued Note(s). B2B 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.

What happens if Issuer defaulted on Issued Notes?

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, B2B Finpal will use the best endeavor to resolve defaults and/or recall repayment for defaults, including but limited to the below:

A) Restructuring the defaulted Issued Note(s) to stretch the repayment periods if B2B 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 a 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 to be charged on the defaulted Notes (subject to any restructuring and/or recovery terms).

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

How would my investment be impacted in the event of delinquent / default?

In the event of any delinquent and/or defaulted Issued Note(s), B2B 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, B2B Finpal will use best endeavour to maximise recoveries from Issuer on behalf of Investors.

Is My Investment Secured?

B2B 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,B2B 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.

Are my funds at risk if B2B Finpal becomes insolvent?

Your investment funds are held on trust on your behalf in a segregated Investor Trust Account which cannot be transferred to B2B Finpal Accounts. Additionally, B2B Finpal has entered into a comprehensive living will arrangement with a regional based trustee as part of our business continuity plan.

In the event that B2B 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 B2B 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.

VIII. Other FAQs

Is B2B Finpal Regulated?

Yes,B2B Finpal is a Registered Recognised Market Operator, governed under Section 34 of Capital Markets and Services Act 2007 (CMSA) by Securities Commission of Malaysia (“SC”).

Can I register as an Issuer and an Investor simultaneously?

Currently, there is no rule restricting you to register as Issuer and Investor simultaneously. You will be required to open separate accounts for each, using different email addresses.

In such event, you are advised to manage your account properly and not to invest into your own Issued Notes so as to avoid concerns for conflict of interests.

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