Small and medium-sized enterprises (SMEs) might not always make the headlines, but they are the unsung heroes of economies worldwide. From bustling metropolises to remote villages, SMEs play a pivotal role in driving economic growth, employment, and export revenues, especially in emerging markets. 

Picture this: a local family-owned bakery in a quaint town, a tech startup in a bustling city, or a handicraft workshop in a rural village. What do they have in common? They’re all SMEs, and they’re all contributing significantly to their respective economies.

In a recent survey across 20 key Asian countries, SMEs emerged as dominant players, constituting 96% of all enterprises and provide employment to 62% of workforces across these 20 countries and contributing an average of 42% to gross domestic product (GDP) or manufacturing value-added. This assertion also holds true in Malaysia whereby 97.4%  of businesses fall under the category of SMEs.

A closer look at the Challenges Faced by SMEs in Accessing Financing

SMEs are vital to Malaysia’s economy, driving employment, innovation, and growth. Nevertheless, they encounter substantial barriers that impede their progress and growth, as accessing essential financing is not always straightforward for them. Let’s delve into the specific challenges faced by these enterprises in Malaysia.

Limited Collateral

The insufficient collateral among SMEs not only leads to higher interest rates on loans but also poses a significant barrier to expanding SME credit. Traditional financial institutions, such as banks, often require collateral to secure loans, yet many SMEs struggle to provide tangible assets or property, especially during their early stages. This limitation severely limits their ability to access loans and lines of credit, hindering their growth potential.

In stark contrast, multinational companies encounter a much lower rejection rate , with only 7% of their financing requests being declined. This discrepancy underscores the challenges SMEs face in securing financing compared to larger corporations. 

Businesses Are Deemed Too New

The youthfulness of a business often becomes a hurdle when seeking traditional financing, as SMEs are frequently informed that their venture is too new. Banks typically mandate a business to have a minimum operational history of two years to be eligible for loans. This requirement stems from the necessity for a business to demonstrate its potential for success and sustainability over a defined period. Establishing a track record of success is vital, as it signifies profitability and reduces the perceived risk for lenders.

Figure: New SME and total Business Lending Annual

However, this poses a dilemma for new businesses in need of capital to kickstart their operations. Figure 1 illustrates the disparity between the required total business lending and the actual amount lent to new businesses. Obtaining loans from banks as a small business proves challenging, underscoring the importance of seeking alternative funding avenues.

Regulatory Barriers

In many developing nations, banks often lack robust internal ratings-based models due to data scarcity related to SME exposures. This leads to SMEs receiving unfavourable external credit ratings, resulting in significantly higher financing costs compared to larger enterprises. Credit rating models employed by agencies tend to treat both large companies and SMEs similarly, despite SMEs’ constrained financial depth and individualised corporate governance structures. This discrepancy significantly inflates the cost of funds for financial institutions, as risk weights for SMEs can climb to 100% or higher, compared to a manageable 20% for higher-rated borrowers. As a result, SMEs face a substantial financial burden, hindering their ability to compete effectively in the market.

Another significant concern arises from the implementation of liquidity and leverage requirements in the financial sector following the global financial crisis. Post-crisis financial regulations demand high-quality assets, posing challenges for SMEs due to their low credit ratings and underdeveloped capital markets in emerging economies. 

Insufficient Use of Information Communication Technology in SMEs

In today’s dynamic business landscape, the integration of information and communication technology (ICT) has become more than just a choice – it’s a necessity. However, despite its undeniable importance, many businesses in Malaysia, particularly those in rural areas, still lag behind in adopting ICT. This presents a worrisome scenario, especially for SMEs that overlook the adoption of digital technologies. Without embracing ICT, SMEs risk limiting their visibility to larger markets and jeopardising their long-term sustainability. According to studies,  the detrimental impact of limited ICT access on SMEs are hindering their ability to innovate and thrive in today’s competitive business environment in Malaysia.

Facilitating SME Financing Through FinTech and Government Support

Given the pivotal role of SMEs in Asian economies, it is imperative to explore avenues for ensuring their access to stable financing. The emergence of FinTech has brought about a transformative shift in SME financing, introducing groundbreaking solutions that simplify procedures and offer seamless access to capital. Platforms such as peer-to-peer lending, invoice financing, and crowdfunding have revolutionised the landscape, empowering SMEs with new avenues for funding. By leveraging these digital platforms, SMEs can overcome traditional barriers to finance and access capital more efficiently.

Numerous government and donor programs have been established in many countries. Among these initiatives is the credit guarantee scheme (CGS), designed to bridge the disparity between SME finance supply and demand. This public guarantee scheme serves as a strategic tool to alleviate the challenges faced by SMEs in accessing financing.  

Bank Negara Malaysia, established in 2009, oversees the Credit Bureau managing the Central Credit Reference Information System (CCRIS). It regulates financial institutions to ensure stability, advocating for prudent credit policies and professionalism in credit risk management. Providing CCRIS data to banks facilitates quicker, informed lending decisions, promoting responsible lending and strengthening Malaysia’s financial system. This strategy fosters a healthier and more robust financial ecosystem in Malaysia, supporting economic growth and stability.  

The Bottom Line

The increasing reliance on digital platforms for financial transactions has significantly driven the adoption of online lending and digital banking services, enhancing SME financing accessibility and efficiency. Governments globally have introduced policies like loan guarantees and tax incentives to facilitate SME financing. However, the success of reform strategies depends on assessing the financial system and economy’s readiness. Tailored initiatives are crucial to address specific challenges and opportunities, fostering a dynamic and inclusive economic landscape, and strengthening SME growth and resilience.

Take charge of your cash flow to accelerate your business growth today!

*This article is not meant to recommend CapBay 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.

In today’s rapidly evolving business environment, enterprises are consistently on the lookout for strategies to enhance operations, reduce expenditures, and improve efficiency. One key factor in achieving these goals is effectively managing the movement of goods and services from suppliers to customers.

Supply chain finance encompasses a range of strategies aimed at enhancing cash flow management. This creates a mutually beneficial scenario for both the buyer and supplier. The buyer enhances its working capital efficiency, while the supplier generates extra operational cash flow, thereby reducing risk throughout the supply chain.

Emerging Trends in Supply Chain Finance

In recent discussions with global traders pertaining to supply chain finance initiatives, Global Business Intelligence has uncovered several noteworthy emerging trends. Let’s delve into the prevalent trends currently shaping the landscape:

Embracing Digitalisation

Artificial intelligence (AI) and machine learning (ML) are already pivotal components of industrial automation in Malaysia, and the same applies to supply chain finance. A key use of AI in supply chain finance involves invoice processing. In conventional methods, invoices undergo manual review, and data entry into systems is also done manually. This approach is not only time-intensive but also susceptible to errors.

Roughly 81% of internet users in Malaysia engage with digital services, and businesses are embracing technology at an accelerated rate compared to previous years. One out of every three digital merchants expressed the belief that without digital platforms, they would not have survived the pandemic.

With MSMEs comprising 98.5% of Malaysia’s businesses, government initiatives and policies like The Malaysia Digital Economy (MDEC) Blueprint are promoting the adoption of digital technologies and fintech solutions. This drive is speeding up the digitisation of supply chain finance processes.

Alternative funding sources are gaining prominence

Fintech startups and specialised lending platforms are reshaping supply chain finance by offering Small Business (SMB) IT solutions, like invoice factoring and trade finance, tailored to their needs. In Malaysia, the financing landscape has transformed with the rapid growth of Equity Crowdfunding (ECF) and Peer-to-Peer (P2P) platforms. In 2022, these platforms secured over US$1.6 billion, marking a 26% year-on-year increase. Since 2018, they’ve helped 7,218 MSMEs raise RM4.4 billion collectively.

Notably, ECF and P2P platforms in Malaysia have outpaced traditional venture capital (VC)-backed funding. This shift underscores a departure from conventional fundraising methods, highlighting the rising prominence of alternative financing mechanisms.

This trend reflects Malaysia’s readiness to embrace innovative financial solutions, distinguishing it from other emerging economies in Southeast Asia where traditional VC-backed fundraising prevails. The success of ECF and P2P platforms signifies a shift towards more inclusive and accessible financing options for SMBs, fostering a dynamic and resilient business ecosystem.

Sustainability Moves into the Spotlight

The growing emphasis on Environmental, Social, and Governance (ESG) factors in business operations globally underscores the urgency for greener and socially responsible practices, given that up to 80% of carbon emissions originate from global supply chains.

In Malaysia, both public and private sectors are actively promoting sustainability. Over 90% of financial institutions offer sustainable financing products, as per the Joint Committee on Climate Change (JC3) Report. Government initiatives such as the 12th Malaysia Plan (12MP) prioritise economic growth alongside sustainability goals, including carbon neutrality by 2050 and the promotion of green financing and circular economy practices.

With a strong foundation in sustainable finance and ambitious government targets, Malaysia is poised to advance its position as a regional leader in sustainability through innovative financing mechanisms.

A Brighter Future of Supply Chain Financing

In response to the challenges posed by the COVID-19 pandemic, businesses globally are increasingly seeking financial assistance to revitalise their supply chains. This has placed considerable pressure on fintech companies to extend support to firms that have encountered supply chain disruptions over the past year.

The World Supply Chain Report 2023 by BCR Publishing highlights a remarkable 21% year-on-year surge in global volumes within the Supply Chain Finance (SCF) sector, reaching a significant US$2,184 billion. Simultaneously, funds in utilisation have seen a robust 20% year-on-year increase to US$858 billion. Notably, this upswing is underpinned by substantial growth in Africa and Asia, where volumes have surged by 39% and 28%, respectively.  

This heightened demand for supply chain finance underscores the critical role it plays in business continuity and resilience, particularly in the face of unforeseen disruptions like those witnessed during the pandemic. Traditional banks, while historically dominant in this arena, are increasingly facing competition from fintech and other innovative lenders, who are leveraging dynamic discounting, peer-to-peer (P2P) lending, and the emergence of challenger banks to streamline transactions and meet evolving market needs.  

The Bottom Line

Supply chain finance serves as a valuable tool for businesses in cash flow management. It simplifies timely bill payments, alleviating concerns about handling additional expenses later. SCF enhances financial flexibility for companies, enabling access to capital as required, without compromising security or stability.

Ready to take control of your cash flow and fuel your business growth? Reach out to us today to begin this exciting journey together. Our team of experts is here to guide you every step of the way, ensuring you unlock your full business potential.

Take charge of your cash flow to accelerate your business growth today!

*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.

From Left to Right: Darrel Ang (Co-founder of CapBay), Murali Samy (Audit Partner of Deloitte)

A small amount of money can turn into a large sum over time thanks to the force of compounding. Benjamin Franklin described it best when he said, “Money makes money. And the money that money makes, makes money”. Besides that, compounding is also sometimes referred to as “magic” or “an investor’s best friend” within the financial community. 

Compounding investments’ exponential growth happens because the investment generates returns from both its initial principal and the cumulative earnings from previous periods. By fully  comprehending compounding as a beginner, you will be able to experience the true potential of investing and set goals for how that money can increase over time.

Get familiar with the Concept of Compound Interest

The wonder of compounding has the power to turn your initial investment into a consistent revenue generator.  It requires three components to succeed: the initial capital being invested, the reinvestment of returns, and most importantly – time. The longer you maintain your investments, the more powerful the earning ability of the initial investment. As the name suggests, compounding interest is a snowball effect that continues to grow at a faster pace over time.

Regardless of your financial goals, the sheer intensity of compounding should inspire a feeling of urgency in your investing plan. Starting your investments early can make a huge difference in your net worth due to the power of compound interest. For instance, if you delay investing for just nine years, and your average investments generate an  8% annual rate of return, your investments may only have half the value as it would have if you started investing now. Therefore, it’s important to start investing as early as possible to take advantage of the potential for long-term growth.. 

Let’s use an example to illustrate 

Suppose you invest RM15,000 at an annual interest rate of 8%. After one year, your investment will be worth RM16,200, giving you RM1,200 as your profit. If the profits are then reinvested for another year and continue to earn 8% p.a. (RM1,200 x 0.08 = RM96), your investment will grow up to RM17,496(RM15,000 + RM1,200 + RM96 + RM1,200 ) at the end of the second year.

The RM1,200 return that you have invested to work with the capital will earn you an extra RM96(RM1,200 x 0.08 = RM96) next year. This additional interest earned on interest is seen as the effects of compounding interest. While this amount may seem very small right now, over the years this sum could be larger than the initial principal amount itself. In fact, in this example, your total portfolio would be worth RM32,384, with the proportion of interest returns being larger than the initial RM15,000 investment within 10 years. However, it is important to note that this assumes a constant rate of return without any losses.  

Utilising Compound Interest to Maximise Your Financial Growth

One important factor to consider is the compounding rate of your account. This refers to how often the interest on your account is calculated and added to your balance. The more frequently interest is compounded, the more quickly your money will grow.

Time is also a crucial factor when it comes to compound interest. The longer you leave your money to grow, the more it will benefit from compounding. This is why it’s so important to start putting aside funds for investments, especially for longer-term goals such as retirement as early as possible. By giving your money more time to grow, you’ll be able to make the most out of your money in the long run. Compound interest can help your investment savings grow in size, but it requires discipline, patience, and a long-term perspective.

However, it is important to note that when it comes to debt, compound interest can work against you. The longer you take to pay off your debt, the more interest you’ll accumulate over time. This means you’ll end up paying even more in the long run. To minimise the impact of compound interest on your debt, it’s important to pay it off as quickly as possible. Whether you’re dealing with credit card debt, loans, or other forms of debt, making extra payments or paying more than the minimum amount can help you pay off your debt faster and save money on interest payments in the long run.

Start Compounding your Investments with CapBay P2P’s Auto Invest

In general, automated investment systems enable investors to automatically distribute their funds across multiple investments without requiring them to manually pick and choose them. There are usually parameters that are selected up front, which will then govern what the appropriate investments are before executing them accordingly.

CapBay’s Auto Invest allows our investor to select a profile based on their risk tolerance. Based on this, our Auto Invest will then automatically allocate the investor’s funds into a highly diversified portfolio of P2P investment notes with average net returns of 8-10% p.a.. Besides that, the system also automatically re-invests any repaid funds while active, allowing for a seamless investing experience. This means that investors are able to sit back and relax, while CapBay P2P’s Auto Invest allows for maximum diversification and compounding interest as proceeds are continually re-invested.

Begin your investing journey with CapBay today!

*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.

In Malaysia, Peer-to-peer (P2P) financing has become increasingly popular within the alternative investment space. Since the Securities Commission Malaysia (SC) started granting P2P licences in 2016, the P2P financing sector has been rapidly expanding, with the total financing amount raised doubling in 2021 when compared to the previous year. This represents remarkable growth as retail investors become more familiar with P2P financing as a viable investment alternative to equities and fixed deposits.

However while P2P financing is attractive as it generates high returns, as with all investments there are still risks involved that investors should be aware of – specifically default risk. While CapBay P2P represents a leading P2P platform with one of the lowest default rates at <0.1% across over RM880 million in financing (as at time of writing), it is still important for investors to fully understand both the causes of default risks and how it affects their investment portfolio to have the confidence to invest with P2P financing. . 

What are defaults? 

Similar to bank loans, P2P financing can be thought of as another short term financing product, where the borrower represents the company in need of financing, and the lenders represent the crowdfunders and in this particular case, the investors. With supply chain financing, the loans are generally tied to invoices that details the nature of the work done, the owed amount, and the repayment period. 

Occasionally, a borrower may miss their repayments by a small timeframe due to administrative issues such as public holidays or repayments made on weekends. Alternatively, there could also be more operational issues such as late repayments made to the lender by their debtors/buyers, which means they are unable to repay the P2P lenders. These cases would be considered late repayments rather than defaults. For CapBay P2P, we will provide reminders and make contact with the lenders even before the stipulated repayment date to ensure timely repayment for our investors. However, it is important to note that our investors will continue to accrue daily interest on late repayment notes until the actual repayment date (that may be past the expected repayment date). In this case, while late repayments may provide some concern to investors, they are not penalised for the delayed repayments, and instead will continue to earn returns. However, an extended period of non-repayments may eventually lead to signs of an impending default.  

Defaults occur when repayments are not made within a stipulated timeframe past the agreed repayment date. For example, a default may be declared when the borrower has yet to have made the repayment 90 days past the repayment date of the loan. In this case, the outstanding amount of the loan and any interest owed would be considered defaulted. Circumstances that may cause defaults include insolvency, non-repayment from the borrower’s debtor/counterparty, loss of a business licence, non-performance of a contract, or a direct refusal to make repayments for any reasons. 

Thus, it can be seen that default risks are related to the repayment ability and credit worthiness of the borrower. The safer the borrower, the lower the risk of defaults, and hence the lower the overall risk undertaken by the lenders/investors. 

Does this mean any defaulted amounts are lost? 

While defaults may seem like a complete loss for the lenders, there are still other avenues that may be pursued to recover any outstanding defaulted amounts. For CapBay P2P, CapBay will act on behalf of the investors to formal recover actions such as restructuring or legal proceedings (enforcement on collaterals or securities through a Court order, or through a recovery of debt action in Court). In Invoice Financing, which CapBay specialises in, we will also initiate recovery action against the issuer’s buyer or debtors for the invoices that have been factored to us.

Any amounts recovered will then be redistributed to our investors on a pro-rata basis, which is according to the proportion of the invested amount of each investor on the defaulted note. Thus, while defaults are a genuine risk to our investors, there is still hope to recover defaulted amounts. 

I’ve had a default, how does this affect me and what should I do? 

As a P2P investor, in the unfortunate event of a default there may be principal loss within your investment portfolio. This means that the initial investment amount may have been lost due to the non-repayment. However, as with all investments, we have to consider this from a big picture perspective. While any principal loss may cause unease, the diversification of an investment portfolio will dictate the actual impact on an investor’s portfolio. For example, if an investor with a well-diversified portfolio of RM50,000 faces defaults, this may only affect up to 2% of their portfolio as their funds are split into more than 50 notes. Considering that CapBay P2P offers 8% net returns per annum, this would mean that in a given year, an investor may not even incur any principal loss, but would instead receive slightly lower returns at 6% per annum.  

It is important to also recognise that a default faced by a single borrower does not reflect the repayment ability of other borrowers. This is because defaults occur due to an individual borrower’s inability to make their repayments. In most cases, a single default from an issuer wouldn’t necessarily mean that other defaults are bound to happen, as different issuers have different financial strengths and situations. At CapBay P2P, we also ensure exposures are controlled at the borrower level, where our investors are not overexposed to a single Issuer. This is a part of our risk management strategies and reflects how we’ve been able to maintain a default risk of 0% throughout the COVID-19 pandemic period, only having declared our first defaults at less than 0.1% of our total financing amount after the reopening of the economy as a testament to the strength of our credit model. 

While it may be tempting to stop all investments with a P2P financing platform after incurring a single default, it is also important to recognise the alternatives. Withdrawing your entire portfolio after a default will solidify any losses incurred, whereas the alternative of maintaining your investment portfolio may allow an investor to recoup their initial losses. With the example above, given a net return of 8%, it may only take 3 – 4 months to recover potential losses from the defaults, with the chance of further recovered amounts. Similar to the equities market that saw a significant downturn in 2022 where the S&P 500 saw an 18% decline, time in the market is not to be underestimated as the longer-term performance is still in the positive. Thus, the length of the investment timeframe matters, where returns are able to continue to compound to offset any losses incurred in the short term. 

In conclusion 

In summary, while defaults are a very real risk faced when investing in P2P financing, its impacts can be mitigated by having a diversified investment portfolio and allowing enough time for the returns to compound. Have a look on our article Top 5 reasons why you should diversify your investments with CapBay P2P to learn few more reasons of diversification. It is also imperative to truly understand the causes of the defaults in order to make the right decision in response. The default rate of any given P2P platform should be taken into account and the net returns expected should be measured against the defaults. 

As with all investments, it is important for potential investors to fully understand the risks involved in order to manage their risk tolerance levels as a trade off for the returns offered. CapBay P2P continues to pride itself on being a P2P platform that provides high quality investment notes to our investors, maintaining a default rate of <0.1% throughout these periods of volatility. To kick start your investment journey with CapBay, feel free to reach us.

Begin your investing journey with CapBay today!

*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.

*All statistics are accurate as at the time of writing.

Have you ever heard of an investment product that provides positive returns without having any risk involved at all? Well, we all know the answer – it’s a big “NO”. Unfortunately, every investment platform and product comes with its own risks, as returns earned are a reward for risk borne. The returns for investment assets such as stocks and equities fluctuate every day, with a mix of good and bad days accumulating to form the returns over time. However, investment products with fixed returns such as fixed deposits, bonds, and Peer-to-Peer financing (P2P) help to mitigate the risk of volatile returns.

Peer-to-peer financing is a type of direct lending to individuals or companies, where a platform acts as an intermediary to facilitate the lending and repayments. P2P financing is usually conducted online via highly specialised platforms. Through digital platforms registered with the Securities Commission Malaysia (SC), P2P financing allows investors to directly lend funds to SMEs and companies, in order to free up cash flow and working capital issues.

Both secured and unsecured loans are usually offered through P2P platforms, with products varying based on the borrowers’ needs. P2P financing platforms may have lower credit thresholds than traditional banks, allowing lenders to obtain financing where they may not have been able to through traditional methods. However, this may also indicate a higher risk, as P2P platforms may be more lenient. Some platforms successfully take this into account by evaluating loan applicants with alternative sources of data that may not be assessed by traditional banks to get an even more accurate gauge of a lender’s repayment ability.

However, despite the risk factors and the relative recency of P2P platforms, the P2P financing industry has demonstrated its resilience and reliability as both an alternative financing and an investing platform.

As of December 2021, approximately RM2.3 billion had been raised through over 30,000 successful campaigns and 4,200 issuers. More than half (54%) of the investors were under the age of 35, with retail investors accounting for 90% of the amount invested. This represented an increase in financing of RM1.14 billion in 2021, which was more than double the amount when compared to the year before. (Capital Markets, 2022)

As P2P financing continues to grow in Malaysia, we have identified the risks and proposed potential solutions in order to assist Malaysians to safely and successfully invest via P2P. Let’s dig deeper and find out how we can overcome the risks and maximise our returns associated with Peer-to-peer financing platforms. 

1. Risk Involved: Losing principal invested

While Peer-to-peer lending platforms generally have fixed returns, there still exists the risk of principal loss via defaults. A default occurs when a borrower is not able to make their repayments on their loans, causing investors to potentially lose a portion of their invested amounts. 

Proposed Mitigation

The solution to this is quite simple – diversified investments. As the adage goes, we should not have all our eggs in one basket. This means that investors should split their funds into different businesses and industries, and in the case of P2P, it’s actually investing into a variety of investment notes. In this scenario, a default will have a lessened impact on an investors total portfolio. CapBay has an Auto Invest function that automatically distributes an investor’s funds into 100+ notes. 

2. Risk Involved: Not achieving the expected returns 

While P2P financing usually provides investors with the potential for higher returns than savings accounts or fixed deposits, there may still be a risk of achieving lower returns than expected.

Proposed Mitigation

To ensure that investors receive their targeted returns, it is advisable to stay invested for longer periods of time, such as 2 -3 years. This allows investors to earn compound interest on their returns, as the profit earned can be reinvested. It may also be helpful to have your investments automatically re-allocated, in order to avoid having unutilised cash. CapBay P2P’s Auto Invest function allows investors to take a passive investing approach as the profits earned are automatically reinvested. We also have shorter investment tenures of between 1 – 6 months, that allows for more compounding interest. 

3. Risk Involved: Credit Risk

P2P financing carries credit risk, as the risks borne by investors are tied to the repayment ability of the borrowers. This credit risk may be heightened as applicants for P2P loans may have poorer credit histories that hinders their ability to obtain traditional loans from banks. 

Proposed Mitigation

To avoid this, investors should conduct their own research on the borrower’s profile properly before making an investment. Some platforms will require and conduct strict background checks on their borrowers before providing them with financing. This information will then be made available to investors to aid in the decision making process. CapBay takes pride and put in a lot of effort to ensure a low default rate where it’s currently at less than 0.1% since 2016 inception, reflecting our adherence to our strict credit controls. 

Until recently, the only real option for obtaining a loan was to approach a bank or similar financial institution. Peer-to-Peer financing has made the borrowing process easier for SMEs and other businesses in order to assist with their growth. Similarly, investors can now invest and earn higher returns compared to other types of investments, while controlling the level of risk based on their investment appetite.
Thus, by helping to shed some light on both the risks involved and the solutions to overcome them, we hope that more investors will be well-equipped to maximise their returns with Peer-to-peer financing in Malaysia. CapBay ensures that SMEs and businesses have safe and secure access to financing, while also providing the opportunity for investors to earn reliable and consistent returns.

Begin your investing journey with CapBay today!

*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.