Understanding Risk
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, 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.
SME Financing in Malaysia by B2B Finpal
Running a Small-and-Medium-Sized Enterprise (SME) these days can be very challenging especially with the current Movement Control Order (MCO) in our country.…
Business Financing in Malaysia by B2B Finpal
Are you looking for business financing in Malaysia to start a business or maintaining an existing one? If your answer is yes, then you are at the right place!…
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…