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.

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

1. Obtain SME Financing with Poor credit

Unlike other types of SME financing, CapBay’s assessment for an application is based on your buyer’s repayment ability instead of just SMEs own credit standing. This allows us to finance SMEs in Malaysia 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, SMEs in Malaysia will not have to fork out SME Financing 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, SMEs in Malaysia can get additional SME financing and not have to worry about how you will repay back.

3. Efficient SME financing

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

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:

5. Grow at a faster rate

By having easy access to cash and SME Financing, SMEs can now afford to buy more raw materials and take more orders. What’s more is that SMEs in Malaysia 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 with our proper SME financing solutions 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, SMEs in Malaysia 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 and making life a lot easier when it comes to getting Financing as SME in Malaysia.

Invoice Financing is hence an off-balance sheet SME 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

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. 

The year 2020 had been the start of a new decade but little did we know that a pandemic was upon us. Since the implementation of the first Movement Control Order (MCO) on 18th March 2020, 907,065 Malaysian SMEs have struggled to survive through the tough time due to a lack of cash flow. They didn’t have sufficient financing to operate their business.

Long payment terms from clients coupled with the sharp decline in sales further challenge the liquidity position of businesses. However, the cash gap can easily be addressed by taking on additional financing. Businesses tend to go to the bank for financing but during these times, banks are often reluctant to provide financing. That is why you should turn to CapBay’s Invoice Financing solution to enable you to unlock more cash flow for your business.

Introducing CapBay’s Invoice Financing – Your new alternative financing friend

CapBay’s Invoice Financing solution is an optimal and flexible approach that helps to improve your business cash flow. With CapBay’s Invoice Financing solution, you can instantly get an upfront payment based on your invoice amount. You will no longer have to worry about the long payment terms from your customers and can achieve full control of your receivables without any worry!

Read more on The Most Common Reasons for Seeking Business Financing in Malaysia?

Eligibility criteria for CapBay’s Invoice Financing solution

Getting financing should not be hard. To make financing easy, CapBay requires you to meet only a few simple criteria as follows to apply for our solution:

• Your business provides services or goods to other Malaysian businesses on credit terms (Business-to-Business nature)
• Your business has mid-to-large size corporation(s) as customer(s) (private or public);
• Your business has an annual revenue of more than RM 2 million;
• You are a Malaysian registered business (including sole proprietor, enterprise, partnership, and Sdn Bhd.);
• Your business is majorly owned by Malaysians (more than 51%);
• Your business has been in operation for at least 1 year.

*You may also get a quote from us even if you do not meet either one of the required criteria stated here. We can’t promise that we will be able to approve your application but we will consider your application, subject to a case-by-case basis.

Get in touch with us so we can help with your business financing needs.

Get to know how CapBay can help to unlock a world of cash flow for your business.

1. Get maximum financing up to RM1,500,000 

Our financing limit ranges from a minimum of RM 50,000 up to a maximum limit of RM 1,500,000. So, the bigger your invoice value, the larger your financing amount.

2. Leverage your sales for financing

Did you know that you can leverage your sales to unlock more cash flow? That’s right! CapBay’s Invoice Financing solution will not only enable you to bring quick cash into your business but it will also help you to avoid longer payment terms while reducing the probability of incurring bad debts. To obtain financing from us, you simply need to complete your sales order, submit your invoice, and we will give you an 80% upfront payment on your invoice instantly.

3. Superfast application process

Generally, applying for financing can be a daunting task due to the long and complicated process one has to endure. For example, banks typically take about 1-3 months to process an application depending on the complexity of the case. So, you have to wait a long time before you can get your funding disbursed. CapBay understands this and that is why your application with us will only take as much as 5 working days; provided that you have all your paperwork ready!

4. Receive upfront cash within 48 hours upon approval

Once you are onboarded into CapBay’s platform, we take just about 48 hours to disburse your funding in cash. It’s that easy!

5. Lowest service fees without any hidden cost

CapBay aims to contribute to SMEs’ growth by providing the cheapest financing solution. Hence, our service charges are lower and without any hidden costs so that you can afford to seek financing easily. Check out our fees below:

• Platform Fee: 1.0% – 1.5% of invoice value
• Discount Fee: 0.8% – 1.5% per month on financing amount (10%-18% p.a.)

6. No collaterals required

When you apply for financing, it can be difficult for you to arrange collateral(s) to get approval for your funding, especially if you are a relatively new business operating for only a few years. We provide financing based on your company’s reputation and your customer’s creditworthiness. So, you will not have to worry about collaterals when you seek financing from us.

7. Flexibility of financing

CapBay gives you full control to decide whether you would like us to finance all of your invoices or just a few selected ones. Unlike other factoring houses where you usually have to hand over full control of your sales invoice to get funding, which can hamper the relationship with your clients.

So, if you are selling goods to big clients on credit with large invoice amounts, you can opt for CapBay’s Invoice Financing solution to get an upfront payment on these large invoices. Our services include both notified and non-notified factoring. This means that you have the flexibility to choose whether you like to notify your buyers of your factored invoices or not.

Besides, CapBay’s Invoice Financing solution enables you to free up your working capital so that you have enough cash to pay your business operating expenses while catering to the needs of your other customers.

8. Flexibility of applying online

Financing applications can be super fast if you have the flexibility to send in all your documents and invoices online rather than physically visiting the finance providers multiple times.

With CapBay, you can swiftly apply for funding via online channel to speed up your application process. You can submit your invoices and even track your application status with just a few clicks from your laptop screen which is much more convenient.

9. Be a part of our Referral Programme to earn passive income

Put your business networks to good use by joining our Referral Programme to earn some extra cash. Currently, we have 2 Referral programmes for you:

• Standard Referral Programme – For those who would like to refer a potential client on a one-time basis. We will reward you with RM 1,000 cash for every successful referral that transacts and becomes a successful paying customer on CapBay’s platform. Just fill out this form and refer your SME friends to us.

• Introducer Programme – For those who want to refer clients to us on a recurring and long term basis. You will be rewarded in the form of a profit-sharing scheme for each referral. Interested? Just drop us an email at [email protected] and our Partner Specialists will provide you with more information.

With our Referral programme, you will be helping out SME Businesses in need, while earning passive income in the process.

Conclusion

The new normal demands a new way of managing and financing your business. Use this opportunity wisely to turn your business around and maintain a healthy cash flow at this time. Drop us a message today and say good-bye to your financing troubles.

CapBay P2P Financing: Who are we?

CapBay P2P Financing is the new low risk investment platform in town. Today, we will be talking about how our platform not only offers investment with attractive returns but also how we endeavour to mitigate the risk of our investors.

We value your contribution and do everything in our capacity to make your investment secure and rewarding. We ensure that all our investment notes are credible to offer you a diversified portfolio of investments. Let’s check out the 9 innovative features of our CapBay P2P financing platform.

1. Invoice notes only from credible buyers

Currently, CapBay offers invoice financing investment notes from credible buyers only. We fund the Issuers (SME sellers/businesses) in our P2P financing platform via invoice financing.

In short, when an Issuer (business) sells their services or products to a buyer on credit, they often have to wait up to 120 days to get their payment. This stretches their payment term and often creates a shortage of cash flow. To reduce this long term payment, the Issuers come to our platform for funding on the basis of their invoice.

We provide them upfront payment on their invoices, which are basically funded by you, as an investor. Within 120 days, the buyer would then pay the amount due on their invoice to us. This is when your investment matures and your funding is repaid with additional interest as a return.

To know more about Invoice Financing, read Invoice Factoring: What is it &  How it works?

We secure your investment in our P2P financing platform by dealing with credible Issuers that sell products or services to reputable buyers. This includes Government-Linked Companies (GLCs), Public Limited Companies (PLCs), and Multinational Companies (MNCs). This helps reduces the chances of financing loss in our platform. Besides, we use our financial supply chain management methodologies to reduce any additional risks.

2. Managing risk is our top priority

Our supply chain management expertise makes us better in managing risks in our P2P financing platform. We methodically check on our Issuers and their buyers before we let them access our P2P financing platform, as we will explain in the following points. In the event of non-payment, we also have a recourse to the Issuers in the form of a personal guarantee to protect your investment.

3. Robust tech team

We have a unique advantage over other P2P financing platforms due to our robust tech team. Our tech experts use machine learning and algorithms which allows us to emphasize more attention to details to effectively screen the Issuers who apply for funding in our P2P financing platform. This reduces the risk of human errors when we vet our Issuers and their buyers, making it safer for you to invest in them.

4. Stringent credit checking process

Our credit experts work hand in hand with our tech team to fast track our credit checking process. They adhere to both conventional and unconventional methods to check the background history and relationship between the Issuers and buyers and ensure whether the buyers have the financial strength to repay your funding on time.

Our credit team checks on traditional metrics such as financial reports and the Issuer’s and buyer’s financial performance. They also tread to an unconventional way of vetting the Issuers and buyers by creating an iterative predictive statistical model that utilizes artificial intelligence to scrutinize over 2000 trade data points for each and every transaction.

This in-house technique is developed in collaboration with our tech team so that the credit experts can quickly check the counterparty risks, relationship stability, concentration risks, and business trends for each and every Issuer and their buyer before they are allowed to access in our platform. We do not skip any step to ensure that your investment is secured and the risk level is well-managed to its minimum.

5. Measures to maintain our track record of 0% financing loss during Pandemic 

We understand that the current Pandemic and the Movement Control Order (MCO) makes you anxious as an investor. To ensure your security, we are constantly in touch with our Issuers to make sure that they will repay the funding on time.

Our Funding Specialists follow up diligently with our Issuers to ensure their business wellbeing and keep tabs on their business performance. We explicitly follow up on the Issuers over calls to ensure that they can make the repayments on time. So, you can trust CapBay P2P financing platform in this time of crisis that we will deliver as per your expectation, minimizing the chances of financing loss to the best of our ability.

6. First in market, Auto-investment Programmes

New to investment? Not to worry. You don’t have to be the expert on all things investment. Our innovative Auto-investment Programmes helps you to invest easily from the comfort of your laptop or mobile, even if it is your first time investing. We can walk you through the whole process and automate your investment so that you don’t have to take the hassle on the technical details of your investment.

Currently, we have 2 Auto-investment Programmes to help manage your risk appetite for your investment:

• CapBay Diversified – A full range of notes at moderate risk and high returns.
• CapBay Select – A curated set of notes with low risk and moderate returns.

You can simply deposit your money in our platform, choose one of our Auto-investment programmes and set your target limit. We will allocate your funds accordingly, obliging certain parameters such as risk grading and maximum exposure while you can relax and wait for your investment to mature and yield attractive returns.

We have started registration in our platform and have also opened up our Early Access Programme where you can start investing with a minimum deposit of RM 10,000 only. This offer is only for a limited time only, so don’t miss out.

7. Upcoming Programmes for the Risk Averse: Introducing CapBay Assure

If you are truly risk-averse at heart, then our upcoming CapBay Assure programme will be ideal for you. Investors that are looking for the lowest risk possible, can opt for this programme. You can access a full range of investment notes under CapBay Assure but as extra security, both your principal and returns will be guaranteed by our sister company, CB Capital Sdn Bhd. The guaranteed returns on these notes will be fixed at benchmark Overnight Policy Rate (OPR) plus 2.5% to 4% p.a.

8. Short term investment

If you are hesitant to invest your money for the long term in this time of uncertainty, you are in luck. CapBay P2P financing platform offers short term investment notes with 1-6 months’ tenure. So, your money will be tied up for only a short period of time while you will get to earn up to 10% return by utilizing your money in a reliable P2P financing platform like us. This reduces your risk of long term investment where you have to wait for at least a year to get substantial returns on your investment.

9. Transparency

We walk you through our entire P2P financing process without any concealment so that you get to know us before you decide to invest in our platform. Our Relationship Managers provide you with a high touch experience so that you fully understand how we work, how we can meet your expectations and that you have our constant support throughout your investment journey.

To Summarize

We aim to create a P2P financing platform that is low in risk with attractive returns. With the above 9 features, you can be assured that the 9 above features will assist to reduce your investment risk, that seeks to manage risks to its absolute minimum with every step of the way.

With the Pandemic uprising taking over the world’s economy, you need a solid plan to reproduce your money. Investing with us will give you the assurance and passive income that you seek in an investment. Your money will be tied up only for a short period of time and generate returns up to 10% p.a. without any hassle.

To go directly to our P2P platform, click the button below.

If you are away from your laptop, you can simply access our CapBay P2P financing platform via mobile through our android and iOS apps. Get started today!

 

Peer-to-Peer (P2P) financing is a method of alternative financing that matches investors with businesses looking for financing. In doing so, investors such as yourself are able to invest in businesses that they deem trustworthy. Thus, one of the potential challenges an investor might face is finding a suitable business to finance that is both able to repay your funds on time while also providing attractive returns.

P2P financing platforms can address this problem by creating a bridge between you and the business, allowing for the direct transfer of information. In doing so, you would be able to access the platform to better understand the businesses that require funding and make informed decisions in financing the business most suitable to your risk appetite. This allows you the opportunity to understand who you are providing financing to, the returns you can expect as your investment matures, and when you can expect your returns –  all within the shelter of a credible P2P financing platform.

In spite of this, many people still regard P2P platforms as a high-risk investment as they are perceived to have returns that are not guaranteed. This however, may not necessarily be true. In fact, in this article, we will be busting 3 prevalent myths surrounding P2P financing.

3 Myths Busted on Why P2P Financing Platforms are NOT High-Risk Investment after all!

1. Only businesses with bad credit scores seek financing from P2P platforms as a last resort

Many people think that businesses seek funding on P2P platforms as a last resort when they are rejected by banks or have a poor credit score. In reality however, a business with a good credit score may also struggle to get bank approval for financing.

This may happen for a number of reasons. For example, a business may not have enough collateral to meet the bank’s stringent criteria, or may be a new company that may not have any historical credit scores that can be crucial in acquiring financing from a bank.

A key reason businesses may choose to obtain financing through P2P platforms is the speedy application process. Whereas banks may take months to vet and approve applications, P2P financing platforms can conduct the necessary due diligence procedures in only 2 to 3 weeks. The ability to obtain financing in a timely manner is crucial for businesses for cash flow purposes. P2P financing also represents a much more convenient source of financing for those who prefer flexibility in timeliness and costing, with less surprises along the way when compared to banks.

2. P2P financing platforms are not regulated… Oh my!

Many people have the misconception that P2P financing platforms are not regulated and therefore are not credible enough to invest in. On the contrary, P2P financing platforms are strictly regulated by the Malaysian Government. The Government actively supports platforms such as P2P platforms that provide innovative digital solutions that benefit both businesses and investors simultaneously. 

In fact, the Securities Commission Malaysia (SC) has recognised 11 P2P financing platforms, one of which being CapBay, under the name of Bay Smart Capital Ventures Sdn Bhd. On 17th May 2019, the SC approved us as a Registered Market Operators (RMO). Our platform actively operates in line with SC’s rules and regulations.

3. P2P financing platforms are only for investors with a high-risk appetite

This is the most common misconception against P2P. While it is true that P2P financing carries a certain degree of risk, this is no different than any other form of investments. While potential default risks may be frightening to some, a well-diversified P2P portfolio allows you to mitigate such risks by limiting your financial exposure to only a small portion of invested funds. Thus, choosing a P2P financing platform that offers well-diversified investment notes and robust risk management allows you to earn greater returns with relatively lower risk. However, it should be highlighted here that diversification does not eliminate or remove all risk in respect of investment.

Get to know the new low risk investment in town, CapBay P2P Invest. Our platform prides itself on providing great returns, offering only the highest quality investments notes in order to minimise risk while maximising returns for our investors.

Check it out!