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 B2B Finpal’s P2P Platform?
The eligible Issuer shall be a business or company:
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 always to our due diligence checks and credit assessment on case-to-case basis.
How do we apply for the P2P Financing?
Please click Sign up as Issuer with your contacts and brief details about your business. Our business development representative will get in touch with you soonest for application and documentation.
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 3 years audited financial statements, and for the years where audited report not available, management account signed by the director or authorised management
E) Bank statement of key operating accounts for 6 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 and/or other supporting documents where relevant
Do we have to go through a credit checks?
We do have to run 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, our business development representative will guide you through the process.
As part of these checks, we may collaborate with our parent company B2B Commerce (for Issuers who are suppliers registered 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?
Subject always to the credit approval, Issuer(s) may apply for any one or all of the products offered through the Finpal Platform.
B2B Finpal product can be grouped into 2 categories: Invoice Financing and Short Term Working Capital Financing
|Invoice Financing||Allows the SMEs to obtain finance upfront, backing through expected cashflow from their invoices on products and services delivered.
Only E-invoices generated within B2B Commerce Web-EDI and hard-copy invoices to pre-approved Buyers will be accepted.
|Short Term Working Capital Financing||Allows the SMEs to obtain finance in flexible manner, to fund their business operations for variety of reasons such as inventory purchases, festive season sales, business expansion etc.|
In response to the recent business challenges, we have launched a special scheme under the Working Capital Financing, namely Covid-19 Relief Financing, with aims to help alleviating short-term cash flow problems faced by the Malaysian SMEs as a result of COVID-19 pandemic.
Click here for more details about the features and terms of respect product offering.
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 or until the deadline as specified otherwise on the Issued Note offers (Hosting Period). 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 Hosting Period.
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 may 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 processing fee rate chargeable may up to 4.0% depending on the type of financing product and the financing tenor.
What is my repayment schedule?
The repayment schedule may be bullet 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.