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Budget 2022 boosts Peer-to-peer financing (P2P) industry

  • RM80 million is allocated for the Malaysia Co-investment Fund (MyCIF) and an additional RM100 million is allocated for investments by Bank Pembangunan Malaysia Berhad (BPMB) to support alternative financing

  • Introduction of 100% stamp duty exemption on any successful financing agreement executed on P2P financing platform for the next 5 years

KUALA LUMPUR, 2 November 2021 – Peer-to-Peer (P2P) Financing under the supervision of the Securities Commission Malaysia (SC) has generated over RM 1 billion of financing to SMEs since the start of the pandemic. According to SC chairman Datuk Syed Zaid Albar, fintech could be a key enabler in re-building Malaysia’s economy as the country recovers from the pandemic.

The Budget 2022 that was announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz was the largest budget to date to spur post-COVID recovery with a focus on supporting the growth of Micro, Small and Medium Enterprises (MSMEs). The allocation of RM 80 million to the Malaysia Co-investment Fund (MyCIF) was an increase from RM 50 million when it was first introduced in 2019 with the addition of RM 100 million from Bank Pembangunan Malaysia Berhad (BPMB). MyCIF is a co-investment alongside private investors via P2P and Equity Crowdfunding (ECF) platforms that has helped create additional funding sources for MSMEs and spur investor confidence for P2P and ECF investments.

In addition, the government has introduced a 100% stamp duty exemption for successful financing agreements on any registered P2P platform with SC for the next 5 years effective from 1 January 2022 to 31 December 2026. This will reduce financing costs and encourage MSME adoption in P2P financing. Currently, the stamp duty rate is between 0.05% to 0.50%

CapBay’s Co-founder and CEO, Ang Xing Xian, lauded the announcement of the Budget 2022 that focuses on supporting MSMEs and the contribution of ECF and P2P fintechs to the Malaysian economy..

 

Ang Xing Xian, Co-founder and CEO of CapBay

“The P2P financing industry has proven to be pivotal in economic recoveries in other developed countries. The additional MyCIF allocation and stamp duty exemption will help make P2P financing an affordable channel for MSMEs to raise funds during this economic recovery period. We expect adoption in this space to grow exponentially due to additional support and initiatives from the government,” said Ang.

CapBay is one of the largest P2P players, having funded over RM 400m on its P2P Financing platform since the start of the pandemic while their investors have generated net returns (after fees) of up to 10% p.a. with 0% financing loss.

 

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Careers

CapBae Spotlight: A peek into Chun Shui’s personal success and career growth

At CapBay, we value and appreciate our employees, also known as “CapBaes”. We strongly believe they are the foundation and pillars that help to grow CapBay forward. That is why we encourage our CapBaes to strive not just at work, but in their personal life too! Work hard, play hard! Our Head of People and Leadership Development Manager, Chin Ai dives deep into how Chun Shui got into CapBay and to where he is now!

Chin Ai: Hi Chun Shui! Thank you for taking your time to participate in this session with us. Before we start, I would like to first congratulate you on your recent achievement of your Final Year Project being accepted at the 25th year UK Conference on Medical Image Understanding and Analysis. Congratulations!

Chun Shui: Thank you thank you!

Chin Ai: Could you tell us a little bit more about the UK Conference and also what your final year project is about?

Chun Shui: In summary, my project is about a landmark detection model for oral images to identify oral cancer. Basically, it pinpoints the mouth location first before we input the model classification, which will sort out the severity of the oral images. We have to ensure our model’s accuracy too so the results are not affected by other factors such as skin colours.

Chin Ai: That’s really cool! How about telling us how you ended up in CapBay?

Chun Shui: I was scouting for internships and always wanted to join a start-up. Initially I was having a bit of a hard time searching as I realized there weren’t many local financial firms that utilised the AI technology much. However with a bit of luck, while looking through Linkedin I stumbled across the profile of CapBay’s founder, Xing Xian and noticed he owns a fintech start-up. So I went ahead and inquired about the opportunity for an internship, and the rest is history haha.

Chin Ai: Wow that’s quite the history. Do you enjoy being in CapBay?

Chun Shui: Yep! I’ve been here since 2 years ago, starting as an intern before becoming full time eventually. Rather than being assigned to minor tasks all the time I’m given the opportunity to handle different types of projects, thus being exposed to a variety of code language! You can learn a lot of things here.

Chin Ai: Wow that’s great to hear! You graduated just recently as well right?

Chun Shui: Yep! I’m a 2021 February graduate.

Chin Ai: Wow congratulations! Would you say you are very happy that even though you just graduated and you already have so much experience and so much chance to try out different things?

Chun Shui: Yeah! Initially my plan is to further my studies and perhaps allocate 2-3 hours to work on some projects but due to the pandemic everything is being digitized. So I now have more flexibility in juggling between work and study. Plus with the constant lockdown I might as well do something meaningful while learning something new.

Chin Ai: Here’s a fun question. As someone who enjoys and understands machine learning, how do you see yourself using machine learning in CapBay?

Chun Shui: There’s a lot of possible areas we can explore with machine learning especially for the credit department. With that technology we can explore the credit scoring field and even scan through the financial documents. Right now what we actually wanted to do is how to assist them in the loan approval process through the help of machine learning.

Chin Ai: That’s amazing! What do you love about the team you are working with?

Chun Shui: What I love is our teamwork, which contributed to most of our tasks being finished before their deadlines. I want to especially thank Nat as well, who is a part timer. He reminded me of my earlier days, he’s independent as he can handle a lot of enhancement and bugs by himself. I would like to mention my other teammate Abang Naz too. He’s our senior software engineer and he would help me when there’s any big issues, however now that we have more experience in various types of platforms so it’s easier for us to develop new features. Definitely a lot to learn from Abang Naz haha!

Chin Ai: I love how you emphasize the learning culture within your team. Would you say that’s true for all of CapBaes that’s continuing to learn and learn from one another?

Chun Shui: I would say our culture is quite good because we would still give the juniors the opportunity to develop their ideas and we will review their codes. If the code quality is good, then we will approve it whereas in bigger companies (such as banks) they might be less lenient in letting juniors to partake in more complex tasks so your exposure might be limited. I quite like it in CapBay as we can all learn together, for example in my team we would brainstorm together to further improve a chosen solution.

Chin Ai: Wow that’s good. What professional advice would you give to the people with the same job profession as you?

Chun Shui: Having patience is important. When I was still a junior developer intern, I used to be very impatient for all the bug fixing to be done. As those can be time consuming to the point of taking the whole week to debug one issue. As a developer I think it’s vital to be patient and find out the root cause of the issue and implement the best solution from trial and errors.

Chin Ai: I see, that’s cool! What is one thing you would love to tell your team members that you are too shy to tell them in person?

Chun Shui: Hmmm personally I don’t know what to say. As we are usually quite open to each other haha.

Chin Ai: Thank you so much Chun Shui! That’s all from me, and congratulations again on your MIUA achievement!

Chun Shui: Thank you thank you!

Kickstart your career here at CapBay. We are offering internships and full-time positions! Head over to capbay.com/career for more information or shoot us an email at [email protected] to learn more. 

You can follow us on LinkedIn too to be in the loop of everything that happens in CapBay 🙂

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P2P Invest

Top 5 reasons why you should diversify your investments with CapBay P2P

Since the outbreak of the COVID-19 pandemic, we’ve observed high market volatility due to the uncertainties surrounding economic restrictions in Malaysia. We know investors are actively searching for alternative investments to earn steady returns on their investments. Today, we’ll be talking about how you can consider investing with CapBay Peer-to-Peer (P2P) as a way to diversify your investment portfolio while earning attractive returns.

In short, P2P Financing platforms match businesses directly to investors to obtain financing. You don’t need a middleman like a financial institution to work as an intermediary. It’s a two-way street. Businesses have the opportunity to raise funds for their company and you, as an investor, get to see what you are investing and how much you will get in return.

While a lot of articles talk about the benefits of P2P financing for SMEs, there are also many advantages of being an investor. Read on to find out more:

1. Earn steady and reliable net returns

By investing with CapBay P2P, you can unlock net returns of up to 10% p.a. Of course, like any investment, these returns come at a risk. Remember that when investing on P2P platforms, risk-returns are dependent on the credibility of the Issuers on the platform. This differs from other market-linked investments such as mutual funds and equities where the returns fluctuate according to the performance of the stock market.

2. Robust risk management

Leveraging data and automation, CapBay is able to curate high quality and safer financing notes for investors. Recognising the risks involved, CapBay specializes in providing financing to SMEs backed by blue-chip companies and Government-Linked Companies (GLCs). This allows our investors to invest in much safer SMEs.

3. Passive Investing

In CapBay, we aim to provide a seamless investment experience from account opening till the end. With our Auto Invest feature, you can easily automate your investment across various notes on our platform. All you have to do is select an Auto Invest profile according to your risk appetite and CapBay will take care of the rest. Alternatively, you can also manually invest more in notes that you are confident in. However, it should be highlighted here that diversification does not eliminate or remove all risk in respect of investment.

4. Generate returns on undeployed cash

Another great feature when investing on the CapBay P2P platform is that we ensure your money will truly work for you. CapBay Plus ensures that you continue to generate returns, giving you FD equivalent returns on undeployed cash as long as your Auto Invest profile is enabled.

5. Contribute to the growth of Malaysian SMEs

As you know, P2P is a form of crowdfunding that enables Malaysian SMEs to obtain financing directly from investors. This simplifies the financing process for SMEs while providing alternative investment opportunities with attractive returns for investors. And most Issuers on the platform are made up of (SMEs) which are heavily impacted by the pandemic. By investing in P2P, you can support Malaysian SMEs and improve the economy too! As any Malaysian will say, Malaysia Boleh!

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*This article is not meant to recommend CapBay P2P products or be used as a tool to make any investment or financial decisions. Product recommendations must be independently evaluated before you invest. Any product recommendation by CapBay must not be regarded as financial planning or financial advice.

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CapBay News/Press

CapBay Introduces Malaysia’s First Guaranteed P2P Investment Backed by a Reserve Fund

  • The CapBay Assure programme offers investors principal plus interest guaranteed investments, yielding up to 6% p.a. net returns (after fees)
  • CapBay P2P has financed more than RM 300 million since the implementation of Movement Controlled Order (MCO) while maintaining 0% financing loss

KUALA LUMPUR, 13 July 2021 – CAPBAY, a Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (P2P) platform launches CapBay Assure; a guarantee programme that protects an investor’s principal and interest through a reserve fund while ensuring net returns (after fees) of up to 6% p.a. The Assure Programme is a first-in-market that is designed to guarantee principal and interest payouts via a reserve fund that maintains a coverage ratio which is three to five times the expected default rate.

 

 

Ang Xing Xian, Co-founder and CEO of CapBay

 

Attractive returns backed by a reserve fund in current low yield environment

 

“We are excited to launch CapBay Assure after many months of meticulously designing the programme to ensure proper safeguards are in place. We introduced this programme due to strong investor demand for a safer P2P investment option that still yields higher returns compared to fixed deposits or money market funds. We believe that it is the right time to launch Assure on the back of the low interest rate environment and the current general economic concerns”.

 

“The structure of the programme gives our more cautious investors an option to significantly reduce their risks in exchange for slightly lower returns. While we’ve managed to maintain our 0% default rate throughout the pandemic, we believe that CapBay Assure will give investors greater confidence and is an important milestone in making P2P investments mainstream,” said CapBay’s Co-founder and CEO Ang Xing Xian, adding that CapBay Assure also translates the Company’s mission to make not only financing but also investment opportunities accessible to all levels of society. 

 

CapBay was part of the second batch of P2P license recipients in 2019 and launched its P2P platform amidst the COVID-19 situation with the intention of widening investment opportunities and providing access to financing to underserved SMEs. Since then, they have surpassed the RM300 million financing mark for P2P, setting a new record for the shortest time to achieve RM100 million among its peers. The CapBay Group, which includes its multi-bank supply chain finance platform, has been operating since 2017 and has surpassed RM1.2 billion in transactions.

 

Invest in safer asset class backed by the government and large corporate receivables while earning stable returns 

 

Through its strategic partnership with top institutions, CapBay enables investors to invest alongside institutional investors in a safer asset class that is backed by the government and corporate receivables, yielding net returns of up to 10% p.a. CapBay’s technological expertise differentiates itself by offering lower risk and higher quality investment notes. To date, CapBay has maintained a 0% default rate. 

 

“Through robust risk management and advanced credit scoring, we ensure our investors’ interests are protected. Since the implementation of MCO, we are aware that investors are actively looking for higher quality investment products that are low risk while also generating steady returns. CapBay aims to fill this gap,” added Ang.

 

CapBay’s expertise in the area of technology has earned them the prestigious award of “Fintech Startup of the Year” by The Triple A Digital Awards. This accolade marks CapBay as the first and only Malaysian fintech startup to be acknowledged with such recognition.

 

Recently, CapBay secured its Series A funding to further strengthen its technological infrastructure to enable efficient financing and market expansion in order to reach a wide range of investors and underserved SMEs. CapBay’s impressive business performance laid the foundation for successful fundraising. 

For more information on CapBay Assure, please visit https://capbay.com/capbay-assure/

To begin your investing journey with CapBay, visit https://capbay.com/invest/  

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CapBay News/Press

CapBay shatters record for being the fastest fintech to hit RM100 million in Peer-to-Peer Financing

  • CapBay P2P finances RM100 million with average net returns of 10% p.a. since implementation of Movement Controlled Order (“MCO”)
  • SMEs benefit from alternative financing amid trying times while CapBay maintains a 0% default rate in the financing provided
  • Strategic partnerships expand opportunities to invest alongside institutions in a safer asset class backed by government and large corporate receivables

KUALA LUMPUR, 11 December 2020 – CAPBAY, a Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (“P2P”) platform has achieved a key milestone by successfully funding RM 100 million across 500 investment notes on its P2P platform since its launch 9 months ago in March 2020. This achievement is part of CapBay Group’s strong track record of providing supply chain finance since 2017, facilitating a total of RM 800 million across 9,000 transactions covering underserved SMEs.

 

CapBay was part of the second batch of P2P licence recipients last year, while the first batch were announced back in November 2016. CapBay launched its P2P platform amid the COVID-19 situation with the intention of widening access to financing to the underserved SMEs. Since then, they have surpassed the RM100 million mark, setting a new record for the shortest time to achieve RM100 million among its peers. According to Securities Commission Malaysia data, the whole P2P industry cumulatively raised RM80 million in June 2018 when many of the first batch of licensees launched their P2P platform three years earlier in early 2017.

 

“We are thrilled to achieve such a milestone especially while still plagued by the impact of COVID-19. That we have been able to do this in record time shows our ability to provide sustainable growth for both our SME clients and investors,” said Wong Jian Eu, CapBay’s Head of P2P.

 

CapBay shatters record for being the fastest fintech to hit RM100 million in Peer-to-Peer Financing (P2P)

Wong Jian Eu, Head of Peer-to-Peer Financing of CapBay

Strategic Partnerships Expand Investment Opportunities for CapBay’s P2P Platform Backed by Government and Large Corporate Receivables

 

With recent strategic partnerships inked between top institutions and CapBay, P2P investors can now invest alongside institutional investors in a safer asset class backed by government and corporate receivables. P2P investors on CapBay have earned net returns of 10% p.a.

 

CapBay differentiates itself by offering lower risk investment notes. By leveraging on its strong technological infrastructure, CapBay can provide cost-effective financing solutions with low credit risk. This has been reflected in its track record of 0% financing loss on its P2P platform. CapBay’s expertise in the key areas of technology, credit and risk management has earned them the accolade “Fintech Startup of the year 2020” by The Asset Triple A Digital Awards.

 

“Here in CapBay, we strive to continuously offer high quality investments for our investors. Through robust risk management and advanced credit scoring, we ensure our investors’ interests are protected. Since the Overnight Policy Rate (OPR) cuts, we know that investors are actively looking for more high-quality investment products that are safe and low risk while generating healthy income. CapBay aims to fill this gap,” added Wong.

 

For more information on CapBay’s P2P Investment platform, please visit www.capbay.com/invest/

 

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CapBay News/Press

CapBay enters into a joint venture with Kenanga to create Malaysia’s first Islamic Supply Chain Finance fintech

  • CapBay invests into developing Shariah-compliant supply chain finance market through Kenanga Capital Islamic Sdn Bhd (“KCI”) acquisition
  • Ang Xing Xian appointed as CEO of KCI to grow the business and integrate with CapBay’s award-winning technology
  • Dato Seri Mokhtar appointed as Chairman of CapBay’s holding company, Bay Group Holdings Sdn Bhd

KUALA LUMPUR, 3 November 2020 – CAPBAY, a Malaysian Multi-Bank Supply Chain Finance and Peer-to-Peer Financing (“P2P”) platform has acquired a 49%-stake into Kenanga Capital Islamic Sdn Bhd (“KCI”), a subsidiary of Kenanga Investment Bank Berhad (“KIBB”), forming a joint venture with KIBB to create Malaysia’s first Islamic Supply Chain Finance fintech. KCI has a long-standing track record in providing factoring to SMEs in the government sector.

 

Supply Chain Finance to Facilitate More Funding to SMEs

 

The Covid-19 pandemic has taken a toll on the cashflow of businesses of all sizes, but it is particularly challenging for the Small and Mid-size Enterprises (“SMEs”), who may not have access to quick and affordable financing to bridge the gap and emerge on the other side of the global crisis.

 

Supply Chain Finance allows working capital funding using data within the supply chain processes and transactions. For instance, SME contractors and vendors which supply goods or services to large corporates, Government, or Government-Linked Companies (“GLCs”) can obtain receivable financing. SMEs can leverage on the creditworthiness of the larger corporates. In turn, the larger corporates or GLCs are able to support their vendors through the crisis and strengthen their supply chain community. In today’s world one cannot exist without the other.

 

Leveraging Technology to Enable More Efficient Financing

 

Leveraging on CapBay’s strong technological expertise, this acquisition aims to transform Malaysia’s traditional factoring industry to enable SMEs to obtain financing seamlessly through a digital platform. The digital process allows transactions to carry on despite movement lockdowns. CapBay has developed proprietary technology to ease the onboarding of SMEs and credit evaluation. The Malaysian fintech’s unique payment risk scoring model that predicts the risk of each transaction goes beyond just financial statements analysis but utilises machine learning to assess thousands of data points such as historical relationships, payments, quality of contracts and other patterns. CapBay’s data-driven approach has allowed them to keep the default rate low while pushing the boundaries of financing the unbanked and underbanked.

 

CapBay’s Partnership With A Top Investment Bank

 

With the KCI acquisition, CapBay will be managing KCI through the appointment of Ang Xing Xian as CEO to continue the effort of growing the Shariah-compliant business and developing the Islamic Finance market. Xing Xian will report to Datuk Chay Wai Leong, Group Managing Director, Kenanga Investment Bank Berhad (“KIBB”).

 

“KCI is known for providing thorough and reliable SME financing in the government sector” said Datuk Chay. “We’re excited to enhance our service offering with a larger team of experts at CapBay and are now able to provide high quality financing services to both the government and private sectors.”

 

“We have always been committed to offering our customers the solutions they need to advance the growth of Malaysian businesses of all sizes. I am confident that this partnership with KIBB will allow us to grow as an organization and better serve our customers as we invest in our infrastructure and service offering.” said Ang, Co-founder of CapBay and CEO of KCI. The partnership is expected to support underserved SMEs that are estimated to grow 5 folds from its current RM 20 billion.

 

Ang Xing Xian, Co-founder of CapBay and Chief Executive Officer (CEO) of Kenanga Capital Islamic (KCI)

 

YBhg. Dato’ Sri Mohd Mokhtar Bin Haji Mohd Shariff appointed as Chairman of CapBay (Source: TMCLS Annual Report 2019)

Dato Sri Mohd Mokhtar appointed as Chairman of CapBay

 

CapBay has also announced the appointment of YBhg. Dato’ Sri Mohd Mokhtar Bin Haji Mohd Shariff as the Chairman of their holding company, Bay Group Holdings Sdn Bhd. He brings a wealth of experience and will be spearheading efforts to further enhance risk management practices in the areas of operational, fraud and Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT). Dato’ Sri Mohd Mokhtar holds a degree in Bachelor of Law (Hons), a Masters of Business Administration, Certificate of Legal Practice and was called to the Malaysian Bar in 2019. He served in the Royal Malaysia Police from 1977 to 2018, holding key senior positions namely, Director of Special Branch, Director of Narcotics Crime Investigation Department, Chief Police Officer of Johor, Deputy Chief Police Officer of Pahang and Head of Special Branch Kuala Lumpur. He is also a member of the Board of Directors for public-listed TMC Life Sciences Bhd since 2019.

 

For more information on CapBay’s financing solutions, please visit www.kenangafactoring.com.my  Start investing on CapBay’s P2P Investment platform today to diversify your investments at www.capbay.com/invest/.

 

 

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CapBay News/Press

Telekom Malaysia Bhd welcomes CapBay as fintech partner for Vendor Financing Programme

  • Telekom Malaysia Bhd (“TM”) signs Memorandum of Understanding (MoU) with CapBay to provide flexible financing facility to TM local SME vendors
  • CapBay adds TM to its existing large corporates ecosystem that uses CapBay’s Supply Chain Finance platform
  • Expansion in investment opportunities for Peer-to-peer financing (“P2P”) Investors on CapBay’s platform in a safer asset class backed by government and large corporate receivables

 

KUALA LUMPUR, 7 September 2020 – CAPBAY, an award-winning Multi-Bank Supply Chain Finance platform and P2P platform became the first and only fintech selected to be part of national telecommunications giant Telekom Malaysia Bhd’s (TM) Vendor Financing Programme known as PERINTIS. CapBay will provide fast, affordable and fair access to supply chain finance solutions, bridging the cash flow gap for all levels and sizes of vendors throughout TM’s supply chain, including its SME subcontractors.

 

The MOU was signed by Imri Mokhtar, Group Chief Executive Officer of TM and CapBay’s CEO, Ang Xing Xian alongside other representatives from a panel of distinguished banks. The signing ceremony was witnessed by YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives, accompanied by Tan Sri Dato’ Seri Mohd Bakke Salleh, Chairman of TM.

 

The MOU Signing Ceremony was graced and witnessed by YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives, accompanied by Tan Sri Dato' Seri Mohd Bakke Salleh, Chairman of TM

The MOU Signing Ceremony was graced and witnessed by YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives, accompanied by Tan Sri Dato’ Seri Mohd Bakke Salleh, Chairman of TM. (Source: SME Bank picture archives)

 

“SMEs stand to benefit the most from this innovative programme as a large majority of TM’s vast network of nationwide vendors are SMEs” said Tan Sri Mohd Bakke Salleh, Chairman of TM Bhd in his speech at the Memorandum of Understanding (MOU) signing ceremony. “TM’s PERINTIS programme is in line with the government’s efforts to ensure that vendors can expand their job opportunities. As you are aware, SMEs are the backbone of the country’s economy, accounting for two thirds of employment and almost 40% of the economy. Therefore, it is important to ensure that they are able to face the challenges of the economic pressures plaguing us today”, said YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives during his speech.

 

Ang Xing Xian, CEO of CapBay photographed with YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives after his speech at MOU Ceremony between between Telekom Malaysia BHD

Ang Xing Xian, CEO of CapBay photographed with YB Dato’ Sri Dr Hj Wan Junaidi Tuanku Jaafar, Minister of Entrepreneur Development and Co-operatives after his speech at MOU Ceremony between between Telekom Malaysia Berhad and the Financial Institutions with the launch of PERINTIS Programme

 

Telekom Malaysia Bhd is the latest blue-chip corporate to implement CapBay’s flagship Supply Chain Finance platform

 

“We are pleased to partner with TM and be part of PERINTIS, expanding our reach to underserved SMEs in the telecommunication sector that need flexible working capital to grow their business and build resilience against the impacts of COVID-19,” said Ang Xing Xian, CEO of CapBay. “With TM’s assistance in authenticating relationships and transactions, vendor processing requests will be digitised end-to-end, making risk assessment, onboarding and transactional financing simpler and faster,” added Ang.

 

TM welcomes CapBay as the first and only fintech for PERINTIS. From left Ang Xing Xian (CEO and Co-founder of CapBay), Tan Sri Mohd Bakke Salleh (Chairman of TM Bhd) with Darrel Ang (Co-founder of CapBay)

TM welcomes CapBay as the first and only fintech for PERINTIS. From left: Ang Xing Xian (CEO and Co-founder of CapBay), Tan Sri Mohd Bakke Salleh (Chairman of TM Bhd) with Darrel Ang (Co-founder of CapBay)

 

Partnership expands investment opportunities for CapBay’s P2P platform for a safer asset class with healthier returns

 

With this latest initiative, CapBay’s P2P investors can now expand and diversify their investment portfolio backed by government and large corporate receivables while earning healthier returns. CapBay differentiates itself by offering lower risk investment notes in a bid to enhance investor trust and confidence especially during these times of uncertainty brought about by the COVID-19 pandemic.

 

“With the recent OPR cuts, investors are worried that they will see lower returns on their investments and are looking for higher yielding investments that are relatively safe. At our core, we strive to offer P2P investors high quality investment notes that offer good yield and low financing loss risk. Investors can consider this as an alternative to fixed deposit savings,” added Ang.

 

Through CapBay’s proprietary credit-decisioning model, CapBay is able to provide flexible and cost-effective financing to SMEs and at the same time contain credit risks with a good track record of low financing losses, making it an overall safer alternative investment. CapBay launched their P2P financing pilot programme in March 2020 amid the COVID-19 pandemic and has since achieved over RM20 million of financing over 150 notes while maintaining zero defaults and financing losses for their investors. Their tech solution has also been recognised and they were recently lauded as the “Fintech Startup of the Year” at The Asset Triple A Awards 2020.

 

CapBay Founders with The Asset award

CapBay’s Co-Founders with The Asset award (from left: Edwin Tan, Darrel Ang, Dion Tan and Ang Xing Xian)

 

To learn more about how Supply Chain Finance programmes can strengthen your value chain, please visit www.capbay.com/partner or contact [email protected]

To learn more about the CapBay P2P Investment Platform, please visit www.capbay.com/invest

 

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Finance Guides

Why your Business needs Invoice Financing now more than ever!

Emerging out of the Movement Control Order (MCO), many businesses will face significant debt and large cash outflows due to payments being deferred during the lock-down. Businesses will be forced to revitalise their operations with very tight budgets. With an injection of cash from CapBay’s Invoice Financing, you can accelerate your business’ recovery from the economic downturn.

 

Get Funds

 

Here’s why your Business needs Invoice Financing now more than ever:

 

1. Obtain Financing with Poor credit

Unlike other types of financing, CapBay’s assessment for an application is based on your buyer’s repayment ability instead of just your own credit standing. This allows us to finance your business even if you have poor credit or high debt level, provided that your corporate buyer has a good repayment history and has the ability to consistently pay on time.
CapBay’s Invoice Financing allows you to leverage on your large corporate buyers’ creditworthiness to obtain financing. 

 

2. No cash outflow involved

Contrary to loans, you will not have to fork out cash every month to repay principal and interest charges or even prepare for additional costs such as expensive legal fees and such. Instead, CapBay fees are deducted from the funds disbursed to you and the principal repayment is made by the Buyer directly.
With CapBay’s Invoice Financing solution, you can get additional cash and not have to worry about how you will repay back.

 

3. Efficient financing

When compared to collateral-free loans, Invoice Financing is an efficient way of financing your business. Consider the following example: 

 

Scenario A: Term Loan Scenario B: Invoice Financing
Company A takes up a clean (collateral-free) loan with an interest rate of 8% p.a or 0.67% per month. The company would need to pay Interest of 0.67% every month for the whole year even if they do not use the facility for some months.

Company B takes Invoice Financing solution at 12% p.a. This amounts to 1% interest per month (12%/12 months). But Company B only needs to use Invoice financing for 2 invoices in that year, they only need to pay 1% p.a. for each month depending on the invoice tenure (eg 2 months each). 
Company B is not required to pay interest for the 8 months when the facility was not used.

Invoice financing only charges when it is being used.
(Rates used are for illustration purposes only.)

 

4. Cheaper than you think

When compared to Bank Overdraft, Invoice Financing is actually cheaper, even if the interest rate is comparably higher. Consider the following example:

 

Scenario A:  Overdraft Facility Scenario B: Invoice Financing
For an Overdraft facility of RM 1,000,000, a bank would require you to provide a collateral such as Fixed Deposit of RM 500,000. This means you are only borrowing RM 500,000 instead of the facility amount. However, your repayment charges will be based on the facility amount which is  RM 1,000,000. Therefore, in this example, you are paying twice interest for borrowing RM 500,000.

With CapBay’s Invoice Financing, you are only charged for the RM 500,000 you have borrowed and you don’t have to pay for any hidden charges too!

Invoice Financing only charges for what you actually borrowed.
(Rates used are for illustration purposes only.)

 

5. Grow at a faster rate

By having easy access to cash, you can now afford to buy more raw materials and take more orders. What’s more is that you will be able to offer longer payment terms to your corporate large customers which is an important selling point during this tough time.

Easy access to cash from CapBay’s Invoice Financing can truly accelerate your business’ growth during this recovery phase.

 

6. Off-Balance Sheet financing

 

Since invoice financing is technically not a loan, it will not impact your debt-to-equity ratio. With CapBay’s Invoice Financing, you are getting an advance cash on a scheduled receipt rather than borrowing funds. Thus, your debt figures are unaffected which makes it easier for you to have access to credit.

Invoice Financing is hence an off-balance sheet financing method.

 

 

EXCLUSIVE OFFER:

From now until 31st July 2020, gain access to an additional Working Capital Financing of up to RM500,000 and enjoy a 20% discount on our platform fee. So, hurry and and apply now!

 

Eligibility criteria to apply for CapBay Invoice Financing

 

  1. You are a Malaysian registered business (includes sole proprietor, enterprise, partnership, and Sdn Bhd.)
  2. Your business is majorly (more than 51%) owned by Malaysians and has been in operation for at least 1 year
  3. You are providing services or goods to other Malaysian businesses or Government agencies on credit terms (B2B Business/B2G Business)
  4. You have mid-to-large size corporation(s) as customer(s) (private or public) or you have annual revenue of more than RM 2 million

 

Apply Now

 

 

 

 

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CapBay News/Press

CapBay partners with TheLorry to offer inclusive financing for SME lorry drivers

CapBay innovates with partner TheLorry, an online logistics platform to grant underserved SMEs in the logistics space access to affordable and collateral-free financing using alternative data.

  • CapBay makes it possible for lorry drivers, including those with poor credit scores, to relieve business cash flow pressures during Covid-19 and receive cash in time for Hari Raya celebrations
  • Lorry drivers in the financing program to receive cash upfront for Business-to-Business (B2B) jobs done and defer toll expenses, reversing the cash flow gap

KUALA LUMPUR — CapBay, a leading Multi-Bank and Peer-to-Peer (P2P) Supply Chain Financing platform, collaborates with TheLorry to launch the Express Financing program. The Express Financing program is tailored to the logistics industry and aimed at increasing accessibility of digital financing solutions for the financially underserved SMEs. Integration was completed with partners to extend financing to TheLorry’s SME base. Lorry drivers can now easily apply for collateral-free financing upfront and defer toll expenses up to 60 days later.

CapBay has seen a spike in financing volumes in recent weeks for the Express Financing program as there has been increased activity in the logistics sector driven by a switch to e-commerce in light of Covid-19 risks. There has also been increased demand for financing ahead of the Hari Raya celebrations.

CapBay innovates with TheLorry to elevate the financing experience for their userbase

Through the collaboration, CapBay is able to access over 10,000 driver-partners on TheLorry platform, most of which are underserved by traditional banks and have very limited access to financing. CapBay enables fast and seamless onboarding with simplified credit checks, made possible using track record available from TheLorry’s platform marketplace. This means that even lorry drivers with poor credit score can enjoy favourable financing rates.

“Through the financing solutions offered by CapBay, driver-partners can now join us without much hesitation,” said Nadhir Ashafiq, Co-founder and Executive Director of TheLorry. “TheLorry offers a comprehensive and integrated marketplace model. We connect professional drivers with corporate and individual customers through game-changing technology. Ever since integrating our offerings with CapBay’s Invoice Financing solution to support our business and driver-partner community, we have seen operational costs reduced as well as improved cashflow position – all of this whilst empowering our driver-partners to unlock weekly cashflow at the same time.”

A person holding a sign Description automatically generated
(from left to right: Darrel Ang, Co-founder of CapBay and Ethan Lim, Country Manager of TheLorry signs MoU)
CapBay uses human-centred design tools provided by UNCDF to customize financing program for B40 lorry drivers

A market research was conducted with United Nations Capital Development Fund (UNCDF) with the aim of helping aspirational lorry drivers (many of whom fall within the B40 segment) improve the financial health of their logistics businesses. Findings reveal a huge cashflow gap as lorry drivers often fork out cash upfront to cover high day-to-day operational expenses such as toll, fuel and vehicle maintenance costs to carry out B2B delivery jobs, only to receive lump sum payment 30 to 60 days later. Many cited having personal loans rejected or being ineligible for business bank loans due to lack of collateral, financial data and having poor credit scores. More recently, the industry was further impacted by the Covid-19 pandemic and Movement Control Order (MCO), threatening the business continuity of SME lorry businesses with the widening cash flow gap.

“Being in the logistics industry is tough. Without the financing program, I would have to fork out at least a month’s worth of expenses in advance. It was difficult to keep my business afloat,” said Pelangi Desa Trading business owner Shukur Sallih, the very first and valued Express Financing Customer. “Since joining the program, we have better cash flow position and quicker turnover to do more deliveries! Even in tough times now, the access to financing really helped cushion the impact of Covid-MCO.”

It began as a pilot project under UNCDF’s Financial Innovation Lab, a collaboration between Malaysia Digital Economy Corporation (MDEC), Bank Negara Malaysia (BNM), and Metlife Foundation, to improve the financial health of low-to-moderate income people in Malaysia and  CapBay was selected as its first cohort. The project also garnered support from MDEC and has since then received widespread interest from TheLorry’s driver-partner community.

“From day one of FinLab, CapBay was keen to serve the lorry drivers by understanding where their financial pressures lie. One year down the line, here we are, a one-stop solution that speaks to the needs of this underserved segment.” says April Khor, UNCDF’s Digital Innovation Specialist.

(from left to right: Darrel Ang, Co-founder of CapBay and Jeany Tan, Business Development Manager at FinLab Bootcamp)
CapBay helps business partners move fast with enterprise-grade financing infrastructure and technology

CapBay’s strong technological expertise allows for end-to-end digitization and automation of the financing process. The team can process large volumes of transactions with values as low as RM10. CapBay’s leading technology has been recognised by the industry, having recently won the “Fintech Startup of the Year 2020” in Malaysia by The Asset Triple A Digital Awards 2020.

“Our business partners and team members have worked tirelessly to get the Express Financing program up and cater to the increased demand ahead of Hari Raya,” said Darrel Ang, Co-Founder of CapBay. “It was designed to help even the smallest businesses and entrepreneurs. Many of our customers who would typically struggle to get traditional financing were happy to get it from us and in time for Hari Raya. We have been a strong advocate of financial inclusiveness, and we hope our program will continue to scale in helping the B40s, during Covid-19 and beyond.”

(Jeany is seen presenting to a group of lorry drivers at a “Jaga Kesihatan Kewangan Bisnes Anda” themed TheLorry roadshow)

For more information on the Express Financing Program, please visit: https://capbay.com/expressfinancing/.

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Finance GuidesIndustry Insight

11 Ways to Get Your Business Financing Application Approved

Have you ever asked yourself why the financing application for your business has not been approved? The fear of having your financing application rejected is quite real and happens more often than you think. Especially if you don’t know what you are doing wrong. As we are going through an unprecedented time, financing can be crucial to the survival of your business. So, you need to ensure that your application is approved when you apply for a financing facility.

 

To help you do that, we have asked our CapBay experts to share their insights on what makes a finance provider say yes to a business financing application and what you, as a business owner and an applicant, can do to further improve the visibility of your application. Read on to learn about these insights and how you can adopt them.

 

 

1. Bullet-proof financing application

The most common reasons for an application being rejected are insufficient information or a lack of supporting documents. Therefore, to increase your chances of approval, prepare a bullet-proof financing application by setting aside an application checklist, and providing as much detailed documentation of your business as possible. Attach your past and current invoices and completed project details so that finance providers can check the background and history of your company thoroughly. A transparent application with sufficient supporting documents draws a clearer picture of your business to the finance providers. They can understand your company better and learn the intention of your financing request. Thus, increasing your chance of getting approval.

 

 

2. Strong credit score

Finance providers always conduct a comprehensive check on the financial health of your company before approving your financing application. Generally, they would check your credit score from credit bureaus like Credit Tip-Off Service (CTOS) to ensure your credibility. The score of your business is evaluated on the following criteria:

 

  • Payment history
  • Amount owed
  • Length of credit history
  • Types of loans or credit cards your business hold
  • If you have been approved for any new credit facilities recently

The optimal CTOS score is 697-850. However, this is not a strict measure of your credit evaluation. Each case will be considered on a case-by-case basis to ensure that you are a reliable applicant.

 

 

3. Directors with strong credit profiles

Your business may be the one that needs financing but finance providers would also look into the personal details of your company’s directors to get a sense of their integrity and understand how they are running the company. Therefore, if your company’s directors have good personal credit scores, pay their loan facilities, and credit card installments on time, your business will be more creditworthy for finance providers to approve your financing application.

 

 

4. Big corporations as clients

If you have a long list of reputable clients that are from big corporations such as Government-linked Companies (GLCs), Public Limited Companies (PLCs), and Multinational Companies (MNCs), then your profile will stand out to the finance providers. Reputable clients give finance providers the confidence that you have big clients at hand who are less likely to default on payments, which means you will receive your payments on time and this often translates to having a healthy business cash flow to repay your debts on time.

 

 

5. Buyers with a low-risk profile

Finance providers assess the risk profile of your buyers to ensure whether they will be paying on time because if you don’t get paid on time, it would create difficulties for you to pay the finance providers on time. Usually, finance providers would cross-check your Aging Statements with your Bank Statement’s transactions to understand the creditworthiness of your buyers. If you receive your payments on time, you will be considered as having buyers with a low-risk profile. As a result, your chance of getting approved for funding will also be higher.

 

 

6. Constructive business plan for growth

The intention of your financing application is the key to getting it approved. If you need financing to implement your expansion plan or increase your business productivity, finance providers will be more inclined to approve your application. However, if you only intend to use the funding to cover overdue debts or past financial decisions that have incurred consistent losses, chances of your application getting rejected will be high. CapBay is known for continuously helping thriving SMEs to contribute to the economic growth of the country. So, if you are a promising business with plans for further development, you can check our financing services to get funding to grow.

 

 

7. Prompt and consistent debt repayments 

Having a record of consistent and prompt debt repayments means you are a trustworthy applicant who would pay on time. This will help your application to have a higher chance of approval. 

 

 

8. A healthy operating cash flow

It is okay if you are running low on cash but you need to have more cash inflow than cash outflow in your business. For example, if your company is experiencing low sales but still has positive cash flow and you are seeking finance to increase your sales or expand your business, the likelihood of your application getting approved is high. However, if you have an overwhelming amount of operating expenses and you are looking for funding just to cover your debts, finance providers may hesitate to fund you as your business will have a higher chance to default on debt repayments in the future.

 

Read more on 12 Ways to Improve your Cashflow Cycle in 2020

 

 

9. Optimal debt level

You should always maintain a healthy balance between your debt and equity to finance your business. A good debt ratio means your business is more likely to generate enough cash flow to repay your debts. Finance providers prefer business profiles that maintain a  benchmark debt ratio of 40% or less. Also, never overfund your business needs because finance providers will vet your company before approving your application. If they evaluate that you are requesting for funds beyond your business needs, they may not approve your financing application.

 

 

10. Audited financial statements 

Providing audited financial statements reflect your credibility to the finance providers. It ensures that your financial statements give a true and fair view of your business. This makes it easier for finance providers to analyze the financial condition of your business and helps to speed up your application process with higher chances of approval.

 

 

11. Transparent communication with the finance providers

Having an open and transparent conversation with finance providers can make things easier for both parties and speed up your application process. Plus, take prompt action on providing additional documents to fast-track your application and increase your chances of approval.

 

These 11 tips will provide you a good sense of how the finance providers review your business financing applications. So, the next time you apply for a business financing facility,  these 11 simple tips can definitely help your application shine. And, if you are looking for advice to better understand your business financing needs, you can always reach out to CapBay’s Funding Specialists.  In times of uncertainties, CapBay supports you. 

 

 

Get Funding Today!

 

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