FAQ for P2P Financing Platform

General Enquiries

Peer-to-Peer (P2P) Financing is a type of crowdfunding that complements traditional funding from financial institutions such as banks. It is a practice of financing businesses via an online platform that matches Issuers and Investors.

P2P financing platforms enable Small and Medium Enterprise (SME) to raise sizable funds for their operations as the financing terms are catered to each of the Issuer’s needs. P2P financing enables investors to obtain high returns through a diversification approach across multiple companies.

P2P financing is typically debt funding as opposed to equity funding which is the essence of Equity Crowdfunding (ECF). The essential difference between P2P financing and Equity Crowdfunding (ECF) is that you do not give away any stake of your company to shareholders but rather pay returns on your financing.
CapBay connects Investors and SME borrowers without requiring any intermediary entity such as a bank. With CapBay, investors can invest in fractions of a financing (often called as Investment Notes), enabling borrowers to raise funds through crowdfunding. CapBay sets the rates and terms based on the creditworthiness of the applicant. This transaction is facilitated by CapBay and investors can get more returns on their savings and investments when compared to other fixed income investment products. In return, CapBay keeps a service fee out of the interest earned by the investor. Historically, CapBay has always focused on Supply Chain Financing, particularly Invoice Financing.

Read up on CapBay’s humble beginnings here.

CapBay has specialised in the SME Supply Chain Financing sector since its inception. Refer to the scenario below to understand how CapBay improves the Supply Chain Financing ecosystem: 

  • An SME cleaning servicing company, SmallForce has a RM 100,000 cleaning contract with a Government-linked Corporation (GLC), OilNas.
  • Once SmallForce has completed its services, it is expected that they would be paid on credit terms of 150 days payment term. However, SmallForce would still continue to issue payments for its employees and suppliers.
  • A group of investors on CapBay’s platform will pay SmallForce RM 90,000 today and take over their invoice. In 150 days, CapBay will collect RM 100,000 directly from OilNas, for the investor.
  • The difference is essentially the returns (%). CapBay will charge a service fee of 10-30% of the return for its services.
There are several things that differentiate us from other platforms:

  • CapBay is highly experienced in the Supply Chain Financing sector as we are the only platform operator with both Multi-Bank Supply Chain Finance (MBSCF) and Peer-to-Peer (P2P) Financing licensed by the Securities Commission Malaysia.
  • Our Invoice Financing notes offer much better returns compared to bonds and we utilise established Financial Supply Chain management methodologies to manage the added risk from Supply Chain Financing.
  • Our P2P Financing platform features one of the first-in-market Auto Invest based on risk profiles, namely, the Conservative, Moderate and Aggressive profiles. With this feature, you select specific risk-based Auto Invest profiles that are tailored to your risk appetite. CapBay will then automatically allocate your funds for you according to the settings of each profile.
  • CapBay offers a high touch customer experience by ensuring that your dedicated Relationship Manager is always available to help you navigate our platform.

Read up on our article to learn more about CapBay P2P Invest: The New Low Risk Investment in Town.

CapBay (Bay Smart Capital Ventures Sdn. Bhd) is registered and regulated by the Securities Commission (SC) of Malaysia. Established in 2016, CapBay has been working with multiple banks to enable digital Supply Chain Financing for its clients through its platform. As a registered P2P operator in Malaysia, CapBay offers financing deals to retail investors, which were previously only open to institutional investors such as banks. 

CapBay maintains trust accounts with MTrustee Berhad (AmBank), which are designated accounts for investors’ funds, from which the Issuer(s) and Investor(s) will receive their payments. These accounts are administered by MTrustee Berhad, an independent registered trustee to safeguard the investors’ interests.

Yes, in addition to our conventional financing workflow, our platform has been certified and pronounced by a recognised Islamic certification body to host Shariah-compliant investment notes alongside conventional financing notes. Our trustee account, MTrustee Berhad is also Shariah-compliant.
An Issuer is a business entity that is seeking to raise funds through P2P Financing platform; which has been carefully vetted by CapBay.

CapBay Platinum

CapBay Platinum is an exclusive programme  designed for investors who wish to optimize their investments with CapBay P2P; specifically tailored for our investors with larger portfolios.

Investors with a minimum of RM100,000 in their investment portfolio are eligible for the Platinum Programme.

To join the Platinum Program, simply maintain a minimum portfolio value of RM100,000.

As a Platinum Programme member, you can enjoy:

  • Tailored investment solutions and in-depth advisory services
  • Personalized updates on your investments
  • Access to a special referral reward program
  • A dedicated relationship manager to serve you
  • Exclusive invitations to events

Yes, you will automatically upgrade to the Platinum Program once you maintain a minimum RM100,000 investment portfolio – no additional steps are required.

No, there are no additional fees or costs associated with the Platinum Program.

You will receive a bespoke report on your investment portfolio via email on a monthly basis.

Yes, you can withdraw your investments from the Platinum Program at any time. However, do note that if your portfolio balance falls below the minimum eligible amount, your status as an investor will be reverted from CapBay Platinum.

Annual tax statements will be available on the platform for your convenience.

You can easily get in touch with us by contacting your dedicated Relationship Manager.

Yes, we have a referral program in place. You can earn RM500 for referring a new Platinum investor and RM150 for referring a new qualified investor.

CapBay’s P2P Financing Platform

Who can invest in CapBay’s P2P Financing platform?

Both individual and corporate investors may register to invest on our P2P platform. The minimum requirements to be onboarded as our individual investor are as follows:-

  • Minimum age is 18 years old 
  • Malaysian resident or Foreign investor

Can I invest in Capbay’s P2P Financing platform if I’m not a Malaysian citizen?

Yes, CapBay welcomes investors from all over the world. However, as a Non-Malaysian tax resident, your returns will be subjected to a withholding tax of 15% on your gross returns (before service fees), and this is automatically deducted from your returns. However, you are not taxed on the principal amount invested.

I am an individual investor, what supporting documents do I need to provide to open an investment account with CapBay’s P2P Financing platform?

As an individual investor, you are required to provide us with a scanned copy of your NRIC (Front and back) and the header of your Bank Statement.

I am a foreign Individual investor. What supporting documents do I need to provide to open an investment account with Capbay’s P2P Financing platform?

As a foreign investor (whether you hold Permanent Residency in Malaysia or a Malaysian tax resident), you must provide

  • Scanned copy of the first page of your passport
  • Additional documents that may be requested such as proof of residential address in Malaysia; but not limited to the header of your Bank Statement, utility bills, or MM2H Visa Permit.

I am a Corporate Investor, what supporting documents do I need before I make an investment?

Currently, CapBay conducts an end-to-end onboarding process for Corporate Investors. If your corporation is interested, please contact us via email at [email protected] or via mobile or WhatsApp on +60 18-777 7000.

As a corporate investor, you are required to provide the following:

  • Completed Application Form 
  • SSM Company Profile (SSM search)
    An alternative to the SSM company profile, please provide us the documents below:

    1. Certificate of Incorporation (Section 17); and
    2. Latest form of the Return of Allotment of Shares (Section 78); and
    3. Latest form of the Notification of Change in the Register of Directors, Managers, and Secretaries (Section 58).
  • Company Constitution / Memorandum of Association 
  • Board Resolution that approves this investment applicant and authorises a representative to sign the documents
  • A scanned copy of Director’s NRIC (front and back)

How do Individual investors get started in Capbay P2P Financing platform?

To get started on the CapBay P2P financing platform, you will need to register an account with us. It will take less than 5 minutes to register on our platform, provided you have your details ready.

Here’s a Step-by-Step guide for you to invest with us

How do corporate investors register on CapBay platform?

For now, corporate investors will be personally onboarded on to the CapBay platform by our friendly Relationship Managers. In order to register, please contact us via email at [email protected] or via mobile or WhatsApp on +60 18-777 7000.

What is the criteria of a Sophisticated Investor?

A Sophisticated Investor can be an individual or an entity and can be defined through these criteria:


  • An individual whose total net personal assets, or total net joint assets with his or her spouse, exceeds RM3 million or its equivalent in foreign currencies per year in the preceding 12 months, excluding the value of the individual’s primary residence; or
  • An individual who has a gross annual income exceeding RM300,000 or its equivalent in foreign currencies per year in the preceding 12 months; or
  • An individual who, jointly with his or her spouse, has a gross annual income exceeding RM400,000 or its equivalent in foreign currencies in preceding 12 months


  • A company registered under Trust Company Act with Asset under Management (AUM) of more than or equal to RM10 million; or
  • A company listed under Company Act 1965 which is a trustee approved by Securities Commissions of Malaysia (SC) under Capital Market Service Act  2007 and has an Asset under Management (AUM) o more than or equal to RM10 million; or
  • A company with Total Net Asset of more than or equal to  RM10 million based on the last audited financials.

What is a Wealth Declaration?

The Wealth Declaration involves sharing the following information:

  • Investor to declare if you are Malaysian Tax Resident 
  • Investor to declare if you are a Politically Exposed Person (e.g. a politician or a diplomat)
  • Source of wealth – In compliance with Anti-Money laundering requirements, an investor needs to declare the source of their wealth. 
    • For example, we would need to have your details of employment to better understand your source of income, source of existing assets to ensure that we are adherent to the requirements of Anti-Money Laundering (AML) requirements.
  • Investor to declare if you are a Sophisticated Investor.

Can I make changes to my personal details?

Of course! You can always change your personal details by emailing us at [email protected] using your registered email address (which is also your account username).

Can I change my bank account details?

Of course! You can change your bank account details by emailing us at [email protected] using your registered email address (which is also your account username).

What is the minimum initial top up required by CapBay P2P Financing platform?

Here in CapBay, you can start diversifying your investment portfolio with an initial investment of RM 10,000. However, we encourage you to make a cumulative investment of RM 50,000 to ensure you are sufficiently well-diversified.

How do I make a top up into the CapBay P2P Financing platform?

Currently, we accept top ups in our Trustee Account through 3 methods, such as:

  • Bank Transfer
  • Online Transfer
  • Cheque

Please follow the steps below to make a top up:

  1. Login to your CapBay Account
  2. Click the ‘Top up’ button on the top right of the screen
  3. Choose the method of funds transfer
    • FPX
    • Internet Banking
    • Cheque
    • Bank Transfer
  4. Enter the amount you would like to top up
  5. Enter your NRIC or passport number under the ‘Reference’ field
  6. Upload proof of payment
  7.  Click Confirm

Your funds will be held in our trustee account with MTrustee Berhad, to safeguard the investor’s interest. Please allow 3 working days for the amount to be reflected in your CapBay Cash Account.

My daily transfer limit from my selected bank is capped, what do I do?

If your bank has set a cap on the daily transfer amount, you should increase your transaction limit with your selected bank to facilitate the top up. 

Otherwise, you will have to repeat the process until you have transferred the desired amount. You will only be eligible to invest on our platform once your total portfolio is equal to or greater than RM10,000.

What are the types of investment notes that are offered on the platform?

Currently, CapBay has three main categories of investment notes as follows:


  • Invoice Financing (e.g. IF123456): Notified and non-notified invoice financing to finance Issuers (SMEs) that supply goods and services to larger creditworthy companies and government-linked entities. Invoice financing allows Issuers to obtain upfront payment based on their invoices owed by strong paymasters.
  • Dealer Financing (e.g. DF123456): Working Capital financing for Used Car Dealers that are collateralized by motor vehicles. CapBay is financing up to 80% of the financed vehicle value while investors will be secured against the full value of the financed vehicle. 
  • Working Capital Financing (e.g. WC123456): Short to long term financial support to Issuers to cover their day-to-day operations or purchase of capital goods. This includes Revolving Credit – Sales, Revolving Credit – Purchase, Revolving Credit – General and Term Financing.

Does CapBay offer any Shariah-compliant investment notes on its platform?

Yes, Shariah-compliant investment notes are specifically labelled with reference numbers starting with “i”, e.g. iWC123456, iIF123456. However, we do not have a specific Shariah-compliant only Programme available at the moment, investors who are keen to invest in Shariah-compliant only investment notes are advised to manually invest under the New Opportunity tab.

How do Shariah-compliant investment notes differ from conventional investment notes?

For investment notes to be hosted as Shariah-compliant, further evaluation is needed to ensure the businesses funded on our platform are not listed in the Shariah non-compliant business activities. Business activities that are considered Shariah non-compliant such as, among others alcohol, Shariah non-compliant entertainment related and conventional financing are not permitted by Shariah.

In terms of risk to Investors, CapBay employs the same standard of due diligence and Credit Methodology to both Shariah-compliant and conventional investment notes on our P2P platform.

How long is the tenure for each investment note?

You can refer to our Statistic performance to know more about the average tenure of investment notes issued on CapBay. Please refer to your investment memo and Highlight Sheet for more information.

What are the steps of investing in the CapBay P2P financing platform?

Investing in CapBay follows the following process: 

  1. Top up your funds into your CapBay account.
  2. Depending on your risk appetite, you can select your preferred Auto Invest profile located in the Auto Invest tab of the Invest Now section.
  3. Whenever there is a new investment note issued, CapBay will send you an email notification alerting you about it.
  4. Upon receiving this email, you may review the investment note to get more details. Should you feel like you do not want to invest in the note, you can choose to manually Opt-out from investing (which means the Auto Invest will not allocate any of your funds to this note). If you don’t opt-out as per the specific time and date stated in the Email notification, you will be considered as Opted-in and funds will be invested accordingly.
  5. During the launch date and time, the Auto Invest function will run and allocations may be made on your behalf if you opted-in for a particular note.
  6. From that point on, if the funding target for the particular note you are interested in has not been met yet, you will still have the opportunity to manually top up your investment into that note.
  7. When the funding target for a particular note is met and reflected as funded 100%, your portfolio will be updated and you will be able to view under the portfolio tab.
  8. When the note has reached its tenure and is matured, the repayment amount will be credited into your CapBay Account. As long as your Auto Invest is activated, CapBay will automatically reinvest your funds for you into new opportunities.

What is meant by Opting out from an investment note?

Opting-out of an investment note means that you are not interested in investing in the particular note upon learning more details of it. If you do not wish to invest in the investment note, you can log in to your account and select Opt-out from the investment note which prevents the Auto Invest bot from allocating any funds for investment. 

After the cut off time for the “Disable Opt-out”, investors can no longer retract investment from a specific investment note as the bot had allocated the funds for the investment.

What is meant by Launch Date?

Launch date can be understood as when our Auto-invest bot is completed allocating the funds to the investment note. This is when investors can start to manually invest if Auto Invest did not allocate any funds to the investment note, or investors wish to top up the investment to the particular note. The minimum amount for manual investment is RM1,000.

What are risk-based Auto Invest Profiles?

The risk-based Auto Invest profiles are a unique and innovative approach to reducing your investment risk by diversifying your investment according to the specific classes of investment profiles based on your own risk appetite. 

By selecting an Auto Invest profile, you will allow CapBay to allocate your funds on your behalf based on your risk appetite and return preferences. These allocations are made from the cash balance available in your CapBay Account until your funds are fully utilised on our platform. Upon repayment of any investment note once it matures, the principal sum and any returns earned will be credited into your CapBay Cash Account which will then be reinvested if your Auto Invest is still active.

There are three Auto Invest profiles available to you:


  • Conservative: Prioritise investing in the safest class of CapBay notes, trading in some returns for lower risk
  • Moderate: Focus on deploying your funds faster to achieve a diversified investment portfolio
  • Aggressive: Aim to generate higher returns for your investments to suit your higher risk appetite

What are the percentage limit settings in each Auto Invest profile?

The Auto Invest profiles have different percentage limits of your total portfolio for the following programmes: 

  • CapBay Select: Investment notes with lower risk and lower net returns of up to 8% p.a.
  • Capbay Assure: Investment notes with guaranteed principal and interest (based on a reserve fund), with returns of up to 6.0% p.a.
  • CapBay Diversified: Investment notes with higher risk and higher net returns of up to 10% p.a.

Each percentage limit is the cap based on your total portfolio that is set for the cash that will be allocated to each programme. For example, a 50% limit to CapBay Select would translate to a RM 5,000 limit for a RM 10,000 portfolio. We will then not allocate more than RM 5,000 to notes tagged under CapBay Select.

Every time your funds are allocated into any financing notes tagged under a specific programme, your Deployed figure will increase by that amount. The Auto-invest feature will stop investing on your behalf when the Deployed figure reaches the targeted amount. When your notes mature and you get repaid, your Deployed figure will reduce accordingly.

How do I know when I can opt-out from investing in an investment note that I am not interested in?

CapBay will send an email notification to you for any new investment opportunities. From this, “Disable Opt-out” is the validity period in which you can choose to opt-out from an investment note.

Can I Opt-out from a specific investment note and how do I do it?

Yes, you are able to opt-out from a specific investment note without deactivating your Auto-invest feature by following the below steps:-

  1. Login to CapBay at:  https://invest.capbay.com/ or the App
  2. Enter your login details
  3. Under the ‘Invest Now’ page, click on ‘New Opportunities’
  4. Turn off the slider next to the investment note you wish to opt-out. (slider will turn red with a cross if you choose to opt out)*
  5. By opting out, CapBay will not help you to allocate any fund to this investment note.

 *However, if the allocation has already been made, you can no longer opt-out of or avoid investing in an Investment Note.

How do I deactivate the Auto Invest feature?

To disable the Auto Invest, follow the steps below: 

  • Go to the Invest Now section of the platform and the Auto Invest tab.
  • Unselect your Auto Invest profile and ensure no profiles are selected.

If my Auto Invest feature is still active, can I still manually invest in a certain investment note?

Yes! You can manually invest and/or top-up more funds to the financing note that you desire after the Auto-invest bot has completed allocation (launch date). You have the flexibility to invest more into the same investment note if the launch date is still running or before it is fully funded on our CapBay platform, but only after the launch date period is valid.

How do I manually top-up my investment on a note?

After the Auto Invest allocation is completed, you will see that you may have currently committed to the specified investment note as per the Highlight Sheet. 

You can now go to the Invest Now page, 

  • Click on the New Opportunities tab, and
  • Click on the Invest More button, that says CapBay platform has allocated your funds into this note and whether you would like to increase your investment.

As such, the minimum top-up to invest in CapBay P2P Financing platform is RM 1,000. For example, when you activate your Auto-invest feature, CapBay may automatically invest RM 1,000 into the investment note on your behalf. Should you wish to top up your investment, you can choose any amount that you wish; up to the funding target of the note. If you decide to manually invest an additional RM 1,000, you will be able to see your total investment allocation increase to RM 2,000.

I would like to know more about how the Auto Invest feature works, how would i find more information on this?

To know more about the specific features of each programme (Select, Assure, Diversified), you can go to our platform to download the individual Highlight Sheets. Simply go to the Invest Now section and the Auto Invest tab and click on the respective programmes.

I wish to make a withdrawal, how do I do this?

It’s simple! You can withdraw any amount from your available balance in your CapBay Cash Account and up to the total as displayed in your account. There are no charges for withdrawals and you can withdraw as many times as you like. Withdrawal requests will take 3 working days to be processed. 

You can Withdraw by following these steps below:

  1. Log into your CapBay P2P Financing platform
  2. Click the ‘Withdraw’ button on the top right of the screen
  3. Select the reasons for withdrawal 
  4. Choose the bank account you want to withdraw the money to
  5. Enter the amount you want to transfer
  6. Click Confirm

Is there a fee for withdrawal?

It’s entirely free! CapBay will not charge any fees for withdrawals. However, do check with your registered bank as per your CapBay account if any charges would be applied for withdrawal made, particularly if you are withdrawing to a foreign bank account.

Can I withdraw from an Investment Note?

Once your committed amount has been invested, it will be locked for a specific tenure of the investment note. Your funds will be credited back into your CapBay account when the invoice matures and it is repaid. If your Auto-invest Programme feature is active, the money within your CapBay Cash Account will be reinvested automatically to the new deals as they become available.

How are repayments made on CapBay P2P Financing platform?

The repayments are made by the Issuer directly to CapBay’s trust accounts on the maturity date. If there is a delay, it will be considered a late repayment and after a fixed period of time, the non-payment will be considered a default.

As an Investor, can I get Early Repayment from my investment?

If the payment on the invoices is made early by Issuer or if the issuer decides to make early repayment then there is a possibility of early repayment with any returns accrued up to that date. For now, there is no secondary market for investment notes. 

We encourage our Issuers / Buyers to repay early to reduce the default risk for our investors.

What will happen if the note that I had invested in goes into late repayment?

For notes that go into late repayment, CapBay team will update the status of the notes periodically via comments on the affected note. Do check your note status from time to time. 

Interest will continue to accrue until the actual repayment date at the same interest rates. This will then be automatically included under the Profit when repayment is made back to your CapBay account.

Invoice Financing

With Invoice Financing (IF), SMEs (Issuers) that are seeking funds can transfer the rights of their invoices issued to their customers (Buyers/Paymaster) to the CapBay Platform. This helps increase the working capital in a company by improving its cash flow. Investors will receive their principal, plus profit earned when the Buyers make the requisite payment of these invoices.

The tenure of each IF Investment Note is typically around 90 to 180 days, usually with bullet repayments.

The Buyer/Paymaster can either make repayments on the expected maturity date of the Investment note, or an early repayment within the expected tenure, with no early repayment fees charged. Therefore, if an Investment Note is repaid early, Investors will receive their initial principal invested alongside prorated profit that is earned from the day the fund is disbursed to the Issuer until the early repayment date.

Working Capital Financing

Working Capital Financing facilities have assisted many SMEs (Issuers) to grow their businesses either for operational purposes or business expansion. This term financing is medium-term and is up to 36 months of repayment with either monthly or bullet repayment payable to the investors.

The Issuer may make early repayment anytime within the expected tenure. There will be no early repayment fee charged. Therefore, if an Investment Note is repaid early, Investors will receive a prorated interest/profit earned from the day the fund is disbursed to the Issuer towards the early repayment date plus their initial principal invested.

Dealer Financing

With Dealer Financing (DF), investors are able to finance Used Car Dealers’ (UCDs) working capital requirements by unlocking their cash flow on their used car purchases and existing inventory. The UCDs will seek financing from Capbay after they have successfully bid for a motor vehicle on a bidding platform. CapBay finances up to 85% of the financed vehicle value while investors will be secured against the full value of the financed vehicle. This in turn reduces the risk profile while investors are still expected to earn an above average gross returns within a short tenure.

The tenure of each DF Investment Note is typically around 90 days, with bullet repayments.

The UCDs can either make repayments on the expected maturity date of the Investment note, or an early repayment within the expected tenure, with no early repayment fees charged. Therefore, if an Investment Note is repaid early, Investors will receive their initial principal invested alongside prorated interest/profit that is earned from the day the fund is disbursed to the Issuer until the early repayment date.

Risk Management

CapBay carries out due diligence to ensure that businesses applying for financing from our P2P platform are reliable businesses. For CapBay to ensure that a business is reliable to be financed, we look into the key eligibility criteria such as: 

  • The business must be a Malaysian registered business and is majority-owned by Malaysians 
  • The business has been in operation for more than 1 year
  • The business has mid-to-large size corporate(s) as customer(s) (private or public)
  • The business has an annual revenue of more than RM2 million.
  • The business is providing services or goods to other Malaysian businesses on credit terms (B2B Business)
  • The business has no history of insolvency

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

Additionally, we aim to diversify your portfolio to minimise risk. Through the unique feature of our Auto-invest Programmes, you will be able to finance many businesses to quickly build a diversified portfolio. However, it should be highlighted here that diversification does not eliminate or remove all risk in respect of investment.

Issuers/SMEs would have to pass through our rigorous credit assessment before their investment notes can be made available to our investors. A standard set of company and financial documents for assessment of the financial performance of the company will be requested. We will verify and evaluate the documents and information received from the company/SME with the reports from credit rating agencies and/or credit bureaus for independent and objective credit checks. We assess the credit history of the company and all the directors and check for credit litigation history against the company. We also schedule site visits when necessary to the issuer’s business premises where we assess their willingness and ability to finance the repayments.
The probability of losses reflects the Issuer’s strength in repayment as illustrated in the independent report issued by the credit rating agencies and/or credit bureaus. Grading, on the other hand, is our internal measure of the quality of the investment note. We use Grading to provide holistic viewing of the investment notes, taking all types of risks into consideration. Currently, we have 6 levels of grading (A+, A, B, C, D, and E) with A+ being the best, followed by the rest.

CapBay facilitates supply chain financing and as such, we take a lot of consideration related to the transaction itself (transaction risk). For example, in the context of Invoice Financing, we take into consideration how strong the Issuer’s buyer is. There is a possibility that the Issuer’s strength may not be strong, but the buyer is a reputable company which in turn places the overall transaction in a better position.

Nevertheless, the financial strength of the issuer to repay the financing on time plays a vital role in our assessment towards the risks involved.

Once your committed amount has been invested, it will be locked for the tenure of the investment note. Your funds will be credited back into your CapBay account upon repayment. If your Auto Invest is still subscribed to, the money may be promptly reinvested. If the note does not get fully funded or is unsuccessful, the amount invested by you will be returned to your CapBay account.

Fees and Charges

Yes. As an investor on CapBay P2P Financing platform, you will only be charged a service fee between 10% to35% of the returns earned on the investment note. This will be deducted when the returns on the investment note is paid to you. The service fee deducted for each investment will be visible under the Transactions tab.

As of 1st December 2020, CapBay (Bay Smart Capital Ventures Sdn Bhd) has met the criteria to require charging SST on services rendered. As such, we will be including SST charges equivalent to 6% on the service fee mentioned above. The service fee deducted for each investment will be modified to include SST charges.

As Malaysian tax resident, you are responsible to pay the applicable tax on your returns earned. You will need to declare the net returns earned (excluding the service fee) as income during your annual tax filing. However, you are not taxed on the principal amount invested.

Defaults and Recovery

A note is classified as late after 7 days from the payment due date. Currently, all issuers will be given a 7-day grace period from the due date of the investment note. Once the issuer has exceeded the 7-day grace period, the note will be classified as late. The grace period may be changed by CapBay depending on the circumstances and/or suitability.
If there is no repayment made within the period of 90 days from the due date of the investment note, the note will be classified as DEFAULT.

Other events may also trigger a default, such as, an insolvency, a default in any underlying agreement, loss of business licence, or loss of a business project which was funded.


The denominator will essentially be the amount financed plus the returns promised to investors at the point of issuance. This includes Active Notes, Defaulted Notes and Written-Off Notes, if any. 

  • Active Notes refers to notes issued on CapBay’s platform which are not in default
  • Defaulted Notes refers to notes classified as default as per CapBay’s definition
  • Written Off Notes or any similar definition refers to notes which are in default and have not yet been recovered
We understand that the term ‘default’ may be uneasy for many investors. However, we wish to emphasise that as with all forms of investments, investing via a P2P financing platform is not without its risks. It should be carefully considered whether a particular investment is consistent with your risk appetite, tolerance, investment objectives, investment experience, financial conditions, financial needs, personal circumstances, and other considerations that may be relevant to you.

In the simplest terms, a default occurs when the issuer fails to comply with the underlying agreement and does not make the required payment on the investment note in time.

Once a default occurs, CapBay may call for an Event of Default which means that CapBay may proceed to initiate a Recovery action 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, CapBay will also initiate recovery action against the issuer’s buyer or debtors for the invoices that have been factored to us.

Any amount recovered will be distributed 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.

Regardless of the strength of our credit assessment and the eligibility for an issuer to be onboarded, business landscapes (such as the delay in receivables, loss of revenue, and other macroeconomic factors) are oftentimes unpredictable and may be out of the issuer’s control resulting in the potential risk of delays in repayments or sometimes even default.

We strive to protect our investors’ interests by exploring all possible avenues to recover the amount owed to our investors. CapBay has its own in-house collection team which not only pursues after defaulted notes but also every single note that is late.

In short, Recovery is initiated when:

  • A note is late and CapBay assesses that a new repayment structure is required for that note.
  • During an Event of Default (the note being classified as ‘Default’)

The recovery efforts undertaken by CapBay includes the following:

  • Restructuring of notes
  • Legal proceedings (enforcement on collaterals or securities through a Court order, or through a recovery of debt action in Court)
Restructuring is an approach whereby the existing investment note repayment structure is altered to a new structure by lengthening the financing tenure, and changing the structure and frequencies of repayment. The intention of this exercise is to obtain the full payment with returns from the issuer. For transparency purposes, our investors would be notified on any decision made by us to commence a restructuring exercise.
Our collection team will first negotiate the repayment terms with the issuer to come to an agreement which would benefit both the investor and the issuer. At the same time, more receivables may be assigned to cover non-paying buyers and additional security or collateral may also be taken. This would be considered a win-win approach for both parties taking into account the additional interests to be earned by the investors through the restructuring versus initiating a formal legal proceeding against the issuer which may cause the issuer to go insolvent.
A legal proceeding is a legal action by taking the issuer to court to claim for the amount owed. This may include legal actions such as the enforcement on collaterals or securities through a Court order, or a recovery of debt action in Court.

Initiating a legal proceeding against the issuer would be considered a last resort as a legal proceeding is lengthy and costly with no guarantee of recovering back the repayments. The decision to pursue further on the legal action will depend on whether the case is worthy of pursuit with advice from our internal and external legal counsels.