Country: Singapore
Year: 2014Capital Match
Capital Match is P2P lending platform based in Singapore which addresses the borrowers’ and investors’ business needs in two ways:

  • For SMEs, they provide an alternative financing option in order to accelerate their growth and improve their working capital; and
  • For investors, they provide an alternative short-term investment option with full operational support and minimal capital requirements.

The company received a total funding of USD$710k in one round by three investors in Aug 2015.

Concept

  • Capital Match provides loans through its online platform connecting lenders and borrowers.
  • The loans range from SGD 50,000-200,000 for a term of 3-12 months. Loans are syndicated with multiple investors who can provide funds to one borrower. The interest rates also varies from 1.5% to 2.5% per month (along with the additional processing fee of 0.2-0.5% per month). Investors have full right to select which loans to invest in and the amount. The investor’s receive a return equal to the interest rate less 20% commission collected by Capital Match.
  • The only requirement for the investors is to have a Singapore based bank account.

Consumer Benefits

  • Alternative Financing Option for SMEs & Investors: On one hand, they provide SMEs with a substantial financing option helping them stimulate their growth. Borrowers that could not get loans from big banks can apply for funding. On the other hand, they provide investors with alternative investment options with full operational support offering 15-25% annualized return (net of commission).
  • Quick turnaround:  The credit assessment and risk profiling is done by Capital Match. The SMEs can get a loan up to SGD$300k in as little as 3 days.

How it works

  • Both borrowers and lenders need to register on the platform with the required identification documents.
  • Once the account is activated, they can engage in a matching process.
  • The borrower submits a loan request specifying the requested loan details.
  • Credit risk assessment is performed and a final loan request proposal is sent to the borrower for his approval.
  • Then, the loan request is made available on the platform for investors to select and commit funds. An investor can view all the open loan requests and commit funds.
  • Once the combined commitments reach 80% of the requested loan, the borrower can accept the loan.
  • Then, Capital Match prepares the legal documentation for all parties. As soon as the funds are disbursed to the borrower, a payment instruction is set up to collect monthly repayments

Illustration

The following video is a quick introduction to Capital Match

 

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