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About Us

  • 1. What does Capital Match do?

    We operate an peer-to-peer lending online platform that lets SMEs obtain financing from investors.

  • 2. How is Capital Match different than bank?

    We pride ourselves on being more customer-centric than banks. Thanks to our business model we strive to offer better service and value to both borrowers and investors:

    - Borrowers: We are open to more diverse group of borrowers, especially those who are not currently served by banks. You do not need to have perfect credit rating or financials - what's more important to us is your repayment ability which we assess internally

    - Investors: We offer a fixed-income investment opportunity with a net APR of 15-25% with monthly principal and interest payments. There is a risk of borrower's default involved, which we are honest about, but we also perform an internal credit risk assessment approving only the borrowers we believe are able to service their debt obligation

    In a legal sense, we are an intermediary matching borrowers looking for debt financing and investors looking for debt investment.

  • 3. If Capital Match does not lend money itself, what is your role then?

    We match investors and borrowers to facilitate transactions between each other. In this role we provide a set of functions to enable a smooth and seamless experience for both parties:

    1. Pooling of multiple investors together
    2. Credit assessment of borrowers
    3. Legal servicing and facilitation of the transactions
    4. Funds disbursement and monthly payments collection
    5. Bad debt cases resolution

  • 4. Is my personal data secure with Capital Match?

    We use the following security measures to safeguard your data:

    1. SSL to encrypt your entire session when your logged in on our platform
    2. Sessions have a defined timeout which terminates your session if there is a period of inactivity. After that time you will have to log in again to access your account
    3. We store your password using one-way encryption, which means that there is no way to retrieve the cleartext password on our side (only you know your password)
    4. We store your documents using a combination of 2 keys: Your (hashed) password and our own key, so it is not possible for other users to access each other documents through the platform

  • 5. Is my capital safe with Capital Match?

    We are also in the process of finalizing a trust account solution for the investors so that they can hold their money safely with an external company registered with MAS. For now, you may transfer to the bank account listed in the Platform the funds you wish to commit.

  • 6. What is your company's registration information?

    Capital Match Platform Pte. Ltd. is registered in Singapore (UEN: 201501788H). Address: 29 Stanley Street #03-03, Singapore 068738

Account

  • 7. How do I change my account information?

    You should be able to change your account information under "Profile" section of your account. If you require additional help, please contact us at support@capital-match.com.

  • 8. What if I forgot my password?

    You can reset your password on the login page. Click "Forgotten password?" link and provide your email address. You will receive an email with instructions how to change your password.

  • 9. How do I close my account?

    If you wish to close your account, please contact us at support@capital-match.com and we will follow your instructions to close it.

  • 10. Can I open more than one account with Capital Match?

    You can open multiple accounts, but you need to use different e-mail addresses. For example, you may wish to be an individual investor and at the same time be a borrower on behalf of the business that you are running. Though you cannot have multiple accounts of the same type for the same individual and/or company e.g. you cannot register as an investor under your name for two and more investor accounts.

General

  • 1. Who can apply for a facility with Capital Match?

    Any Singapore-registered private limited company or limited liability partnership can apply for a facility with us. More detailed eligibility conditions can be found in the registration form.

  • 2. Why should I apply for a facility with Capital Match?

    What we can offer you is higher approval rate than that of a typical bank and lower interest rates than a typical moneylender in Singapore. We understand the needs of a growing business, so we not only look at your past financials or credit rating but your current repayment ability. We try to offer you the best financing solution at an affordable rate. Our advantages include:

    - No long-term obligation, nor ongoing charges, to use the service - use it as a one-off financing solution when you need it
    - Easy application and documents submission process
    - Less stringent criteria than a bank's loan
    - Total annual cost of 15-20% of the loan amount (incl. interest rate and fees)
    - Full transparency regarding charges and other terms

  • 3. What kind of facilities do you offer?

    For now we offer short term (3-12 months) unsecured business financing and invoice financing facilities. We are also happy to assist business owners with more specific needs, for example, project financing or franchise financing.

  • 4. How large is the financing amount?

    The typical facility amount is SGD 50,000 - 200,000, although we also look at smaller or larger amounts.

  • 5. How much does it cost?

    The total annual cost (incl. interest rates and processing fee) is 15-20% of the loan amount, depending on borrower's credit rating and the facility type. We do not charge any upfront fees, nor are there any other ongoing or hidden charges.

  • 6. Are there any other fees involved?

    Apart from the interest rate and processing fee, there are no other ongoing or hidden fees involved. The only other fee is a late payment fee in case the repayments from the borrower are delayed.

  • 7. How are interest rates determined?

    Interest rates are determined internally taking into account multiple factors including your credit risk, financials etc. Based on the facility term we will also calculate a monthly processing fee. The total annual cost together with the processing fee will be in the range of 15-20%.

Process

  • 8. How does the application process work?

    The application process is following:

    1. You register a user account account with us and create a profile on the platform
    2. Upon our activation of your profile, you apply for the facility on the platform
    3. Once we process your application and agree on the terms, the facility request is made available for investors to commit funds
    4. Once a minimum of 50% of the facility amount is subscribed, you can accept it
    5. Following your acceptance, we prepare the legal documentation for the parties to enter into the agreement
    6. The funds are then disbursed to your account and we set up GIRO on your account for automatic monthly repayments

  • 9. How long does it take?

    Upon receiving all the documents from you, we need no more than 2-3 days (usually shorter) to process the application internally and propose terms to you. Upon your approval, we make the facility available to investors to commit funds. It can take up to 1-2 weeks for them to commit the full amount, but it usually takes less than 24 hours to get it done.

  • 10. What documents do you require for the application?

    Standard financing documentation is required that includes financial statements (last 3 years), bank statements (last 6 months) etc. The list is fairly short (4-6 items) and can be found on the application tab of the platform.

  • 11. Will my documents be made public?

    Your documents will never be made public. They will be always kept confidential. We will only display to our investors selected data that you will first approve. Also, if you decide so, we can anonymize your identity so that it's "Undisclosed" to investors.

  • 12. Do you check my credit status?

    Yes, we check your credit status with DP Information Group as well as Credit Bureau (Singapore).

  • 13. How is the facility approved?

    We first propose you terms of the facility for your approval. Once you agree to it, we make the facility available for investors to commit funds. When they commit a minimum of 50% amount, then it's on you to accept it. At that point the funds disbursement is only subject to signing of the documents.

  • 14. How are the funds disbursed?

    Upon signing of the agreement, the funds are disbursed either by cheque or bank transfer directly to your bank account.

  • 15. How do I make monthly repayments?

    As a part of the agreement, you sign a GIRO Authorization Form for us to set up a monthly GIRO deduction from your corporate bank account to Capital Match in the amount that is owed to Capital Match and lenders.

  • 16. How are the repayments calculated?

    The repayments are calculated on either (a) interest only or (b) principal and interest basis (or a combination of both).

    (a) The borrower repays every month only the interest and the principal is repaid in full at the end of the facility's term. The calculations for the interest repayments ("Interest Repayment") are following = Interest Rate x Outstanding Principal Amount.

    (b) The borrower repays every month both interest and principal. Principal is repaid on an amortized basis ("Principal Repayment") according to the following formula = Outstanding Principal Amount x [Interest Rate / (1 - (1 + Interest rate)-Tenor)] - Interest Repayment.

    Total monthly repayments are then following = Interest Repayment + Principal Repayment. Each facility request sheet includes a schedule of repayments.

    There could also be a combination of (a) and (b) with interest only repayments initially followed by principal and interest repayments.

    There is also a monthly processing fee out of the total facility amount that the borrower pays to Capital Match.

  • 17. Can I pay back the facility early? Is there any early repayment fee?

    For loan facilities, you can repay early subject to a first 3-month non-repayment period. There is no early repayment fee, though you have to pay the entire processing fee that would have been payable till the end of the term. For invoicing facilities, your debtors may pay back earlier than expected, or you may decide to repurchase the invoice(s) from us. There will be no penalties.

  • 18. Can I extend the facility period?

    We normally do not offer extensions on the facility. It can be considered on a case-by-case basis, but might come with an additional cost.

  • 19. What happens if I pay late?

    There is a late payment fee of 1% on the total principal for delayed payment. We also charge a late payment interest of 0.1% per day on the outstanding principal for each day the payment is late until it is settled, and this amount owed is attributable to the lenders.

  • 20. Do you require any collateral or guarantees?

    There is no collateral required, but the company's director(s) and/or shareholder(s) need to act as personal guarantor(s).

Platform

  • 21. Can my business remain anonymous to investors?

    Yes, your business can remain anonymous to investors throughout the funding process if you express such a desire. However, upon signing the legal agreement, the investors will learn of your identity (which is required for legal reasons).

  • 22. What information will be made available to investors?

    Only limited information will be made available to investors including your high-level financials, short business description and risk assessment, among others. We will present the information to you for your approval before we make it available. None of your documents will be shown to anyone outside of Capital Match.

  • 23. What are the legal documents that I will have to sign to take on the facility?

    The key documents that govern the provision of our services normally include Service Agreement, Terms & Conditions, Promissory Note or Invoice Discounting / Factoring Agreement, GIRO Authorization and Certified Extract of Resolution. We will discuss those with you before we ask you to sign them.

Invoice Financing

  • 24. What is Invoice Financing?

    Invoice financing, unlike the promissory notes that we use for our loan facilities, does not create debt. Invoice financing is an agreement for a sale and buyback of an invoice with the right to the payment on it. You sell to us an invoice that you issued to a debtor, your client (usually a large corporate in Singapore). We are then entitled to the payment on this invoice. These invoices are originally assets on your balance sheet, and by selling to us these assets, we provide you with working capital that helps your business grow.

  • 25. What do you mean by "factoring" or "discounting"?

    1. Fully notified/disclosed invoice financing (or "factoring") with payment directly to Capital Match - the debtor is notified of and agrees on the arrangement with the payment being made directly to Capital Match.

    2. Non-notified/disclosed invoice financing (or "discounting") with the debtor not informed of the financing arrangement and still paying to you (instead of directly to Capital Match). The payment, however, is made to a joint signatory account controlled by a Capital Match officer.

  • 26. How is interest charged? How much will you advance to invoice sellers?

    Interest rate starts at 1.5% per month. Until the date of repayment, interest will continue to be charged on the facility, at the monthly rate agreed upon, and charged pro rata on a weekly basis. The advance amount is typically between 70% and 90% of the invoice value.

General

  • 1. Who can apply to become a lender with Capital Match?

    Any resident of Singapore (either an individual or a corporate) can become a lender on the platform. The only other requirement for now is to have a bank account with a Singapore-registered bank.

  • 2. Why should I invest my money through Capital Match platform?

    Capital Match provides a novel investment opportunity: Fixed-income investment into local SMEs with an attractive net APR of 15-25% with monthly principal and interest payments. We provide a full legal and operational support putting forward to investors only fully assessed potential borrowers. In our role, we:

    1. Screen potential borrowers
    2. Prepare a facility request on their behalf
    3. Facilitate the funding online
    4. Process legal documentation
    5. Disburse funds and collect monthly payments
    6. Act on behalf of lenders for bad debt cases

    Soon we will also offer an even better protection by partnering with a trust company offering investors the ability to hold their funds on a trust account.

  • 3. What kind of companies can I lend to?

    Capital Match works with Singapore-based businesses with annual revenues of SGD 1-10m from diverse sectors.

  • 4. How much can I invest?

    The minimum investment amount per facility for now is S$1,000. The cap is the total amount requested by the borrower.

  • 5. How much return can I make? Is there any guaranteed return?

    The interest rate we charge the borrowers is in the range of 1.5-2.5% per month. The return you can make on your capital at risk is 80% of that interest (20% we collect as our commission) which yields net APR of 15-25%. However, the return is not guaranteed since your capital is at risk - there is a risk of 100% loss of capital and interest on a facility should a borrower default and debt recovery and legal proceedings are not successful.

  • 6. How much does it cost? What are the fees?

    The only fee we collect from the lenders is 20% commission on the interest collected from the borrowers. Upon each monthly repayment by the borrower, we disburse 80% of the interest to the lenders and collect the remaining 20% as our commission.

Process

  • 7. How does the registration and funding process works?

    The process is following:

    1. You register a user account account with us and create a profile on the platform
    2. Upon our activation of your profile, you can browse available facilities on the platform
    3. If you are interested in investing in any of them, you transfer funds to the bank account listed on the platform
    4. We will reflect the new funds on your account balance within 24 hours - you can then select any of the available facilities and decide how much funds you want to commit
    5. Once a minimum of 50%, or S$100,000 of the facility amount, whichever is lower, is subscribed and the borrower accepts it, we prepare the legal documentation for the parties to enter into the agreement
    6. The funds are disbursed to the borrower and we set up GIRO on the borrower's account for automatic monthly repayments
    7. Every month we collect the repayments and update your account balance
    8. You may request to withdraw your funds through the platform using the "Withdraw Cash" feature

  • 8. How long does it take?

    Registration process should take no more than 10-15 mins and activation of the account no more than 1-2 days. Investment decision is up to you. The facility stays open on the platform for up to 30 days or until it is at least 50%, or S$100,000 subscribed, whichever is lower, and the borrower accepts it, whichever happens first. Once the facility is accepted by the borrower, we need no more than 1-2 days to prepare the legal documentation and finalize the funds transfer.

  • 9. What documents do you require for the registration?

    For now we only require the scan of your NRIC/Passport. We might contact you to confirm some information.

  • 10. How do I commit funds?

    You commit funds by transferring them to the bank account listed on the platform. Soon we will also offer an even better protection to lenders by partnering with a trust company offering investors the ability to hold their funds on a trust account. With this solution we will ask the lenders to first transfer funds to the trust account so that we can easily disburse them to the borrower(s) (upon your instructions).

  • 11. How long do facilities on the platforms stay open?

    The facility will stay open on the platform for up to 30 days or until it is at least 50% subscribed and the borrower accepts it, whichever happens first.

  • 12. How is the facility request finalized?

    The facility request is finalized when the funds commitment from lenders have reached a minimum of 50%, or S$100,000 of the facility amount, whichever is lower, and the borrower chooses to accept the facility. At that point the funds disbursement is only subject to signing of the documents.

  • 13. How can I monitor monthly repayments?

    Our Platform provides you with updates on each repayment. You may also wish to contact us at support@capital-match.com

  • 14. How are the repayments calculated?

    The repayments are calculated on either (a) interest only or (b) principal and interest basis (or a combination of both).

    (a) The borrower repays every month only the interest and the principal is repaid in full at the end of the facility's term. The calculations for the interest repayments ("Interest Repayment") are following = Interest Rate x Outstanding Principal Amount.

    (b) The borrower repays every month both interest and principal. Principal is repaid on an amortized basis ("Principal Repayment") according to the following formula = Outstanding Principal Amount x [Interest Rate / (1 - (1 + Interest rate)-Tenor)] - Interest Repayment.

    Total monthly repayments are then following = Interest Repayment + Principal Repayment. Each facility request sheet includes a schedule of repayments.

    There could also be a combination of (a) and (b) with interest only repayments initially followed by principal and interest repayments.

    Lenders are entitled to 100% principal repayment and 80% interest repayment. Capital Match also charges the borrower a monthly processing fee.

  • 15. Can I get access to my money before the end of a facility term?

    Outstanding principal cannot be accessed by the investor unless the borrower repays early.

  • 16. Can the borrower repay early?

    For loan facilities, the borrower can repay early subject to a first 3-month non-repayment period. There is no early repayment fee. For invoicing facilities, the debtors may pay back earlier than expected, or the invoice seller may decide to repurchase the invoice(s) from us. There will be no penalties.

  • 17. What happens if the borrower misses the payments?

    If the borrower misses the payments, Capital Match will follow up with the borrower to resolve the issue and strive to get the repayment as soon as possible. There is a late payment fee of 1% on the outstanding principal charged to the borrower for the late payment. We also charge a late payment interest of 0.1% per day on the outstanding principal payable to lenders for each day the payment is late until it is settled.

  • 18. What happens if the borrower defaults on the facility?

    In the event of borrower's default on his obligations, Capital Match will engage a debt collection agency to collect the outstanding debt at the cost to the borrower. If this is unsuccessful, we would advise the lenders if they want to start a legal proceeding against the borrower. The cost of the legal proceeding shall be borne by the lenders.

  • 19. How does the borrower guarantee the facility?

    The borrower's director(s) provide a personal guarantee for each facility.

  • 20. How do you assess the risk of potential borrowers?

    We perform a typical bank-like credit risk assessment of the borrower that includes review of financial statements, bank statements, tax assessment (corporate and of directors), credit rating (corporate and of directors) etc. We prepare cash flow projections of the company and determine the maximum facility amount as well as an optimal interest rate to compensate for the risk involved. We present the results to the lenders on the facility request available on the platform.

  • 21. What rating agency does Capital Match engage?

    DP Information Group.

  • 22. Does bankruptcy allow the borrower to get away with not paying the debt?

    In a case of borrower's bankruptcy, the lenders still have claim over borrower's assets, though the debt owed by the borrower to lenders processed by Capital Match is fairly junior so there might be no assets left for the lenders. In such a case, given the personal guarantee pledged by the borrower's director(s), the directors themselves are personally liable for the owed debt.

  • 23. What does Capital Match do to prevent borrower fraud?

    We run a number of checks to prevent fraud on our platform, among others:

    1. For all the parties registered with Capital Match we perform identity check (NRIC scan for individuals and ACRA's Business Profile for companies)
    2. We only register individuals and companies that have a bank account with a Singapore-registered bank - we also get access to 6 months of bank statements of the borrower
    3. We run extensive credit risk assessment that involves checking both corporate and directors' credit bureau scores
    4. In all cases we arrange for at least one meeting between the borrower and our officer for us to better understand the financing needs and the specific situation of the borrower

Platform

  • 24. Can I remain anonymous as an investor?

    Yes, you can remain anonymous on the platform throughout the funding process. However, upon signing of the lending agreement, the borrower will learn of your identity (which is required for legal reasons).

  • 25. What kind of information can I see about the borrowers?

    Each facility request has a facility request sheet that has detailed information on the borrower including his financials, credit risk overview etc.

  • 26. Can investors contact borrowers directly?

    Investors shall not contact borrowers directly unless agreed upon with Capital Match.

  • 27. What are the legal documents that I will have to sign to legally lend money?

    The key documents that govern the provision of our services include Terms & Conditions and Promissory Note or the Invoice Financing Linked Structured Product ("IFLSP") Purchase Agreement.

Legal

  • 28. Should I seek professional information regarding this kind of investment?

    You should always seek independent financial advice on whether this product is suitable for you.

  • 29. What are the tax consequences of lending?

    Any interest earned through lending activity in Singapore is subject to taxation and should be declared to IRAS. Please seek independent advice on whether you are subject to taxation in other countries.

Invoice Financing

  • 30. What is Invoice Financing?

    Invoice financing, unlike the promissory notes that we use for our loan facilities, does not create debt. Invoice financing is an agreement for a sale and buyback of an invoice with the right to the payment on it. An invoice seller (an SME) sells us an invoice that it issued to a debtor (usually a large corporate in Singapore). We are then entitled to the payment on this invoice. These invoices are originally assets on the seller's balance sheet, and by selling to us these assets, we provide them with working capital that helps their business grow.

  • 31. What do you mean by "factoring" or "discounting"?

    1. Fully notified/disclosed invoice financing (or "factoring") with payment directly to Capital Match - the debtor is notified of and agrees on the arrangement with the payment being made directly to Capital Match (the safer type of invoice financing - most invoice financing facilities on Capital Match platform are of this type).

    2. Non-notified/disclosed invoice financing (or "discounting") with the debtor not informed of the financing arrangement and still paying to the invoice seller (instead of directly to Capital Match). The payment, however, is made to a joint signatory account controlled by a Capital Match officer. Nonetheless, in most cases we will still have the right to the assignment of the payment on the invoice or at least we will place a charge on the invoice seller's ACRA.

  • 32. What happens if there is a default?

    Even if the invoice does not perform / there is a default on the invoice payment, in every case we have a recourse to the invoice seller (the invoice seller has to buy back the invoice) and personal guarantee(s) of the director(s). Thus, if that happens, the arrangement then resembles unsecured lending (it does not mean it's a complete default). In some cases we also request from the invoice seller to procure a trade credit insurance against a default on the invoice payment (and we facilitate the process).

  • 33. What is the legal arrangement for invoice financing?

    For the receivables financing transactions, Capital Match enters into receivables financing agreements with the invoice sellers on behalf of investors.

  • 34. How is interest charged?

    Although Capital Match provides an expected date, the date of repayment is not definite, as this now depends on when the invoice seller’s debtor repays on the invoice. Until the date of repayment, interest will continue to be charged on the facility, at the monthly rate agreed upon, and charged pro rata on a weekly basis.

  • 35. How much will you advance to invoice sellers?

    The advance amount is typically between 70% and 90% of the invoice value, and gives investors additional leeway should the debtors delay their payments longer than expected. Upon repayment from the invoice seller’s debtor, Capital Match will distribute to investors your principal and interest, while returning any excess amount (if applicable), to the invoice seller.

Referral

  • 1. What is the Capital Match Referral Program?

    The Capital Match Referral Program is a partnership scheme that rewards interested parties for informing others of our product and inviting them to register on our platform as a borrower or investor. For every successful referral (as defined below), there is an attractive cash award.

  • 2. Who can participate?

    The Program is open to everyone - whether you are an individual or a company. If you register for an account with us (either as a borrower or lender) you will be automatically allocated your unique Referrer Code. You can also contact us directly at support@capital-match.com to ask for your unique Referrer Code without the need for registration.

  • 3. How does it work?

    Once you have your unique Referrer Code, you can share it with others asking them to input it in the Referral Code box upon their registration. You will be then eligible for a cash award every time a user referred by you becomes a successful referral (defined below).

  • 4. What is the cash award for referring a borrower?

    The cash award is S$500 for the referrer (one who referred the borrower) paid in cash. Cash is awarded only once, upon the first disbursement to the borrower. Capital Match reserves the right to negotiate different terms of referral for each entity.

  • 5. What is the cash award for referring an investor?

    The cash award is S$50 for the referrer for each $5,000 invested by the referred investor on his first two investments. Capital Match reserves the right to negotiate different terms of referral for each entity.

  • 6. How and when is the cash award disbursed?

    The cash award will be disbursed by either cheque or bank transfer and upon invoice.

  • 7. What counts as a successful referral?

    Actual funds disbursement from the lender(s) to the borrower counts as a successful referral.