Frequently asked questions & answers for prospective issuers who would like to get financing from Fundaztic platform.
How do I register my business on Fundaztic.com?
We have created a step-by-step guide to assist you with registering your business on Fundaztic.com
Can you explain Bad Rate %?
什么是 Bad Rate？
Bad Rate %:
Bad Rate is used to predict the likelihood of the particular Note turning Bad within the next 12 months and is directly taken from CTOS SME Score where Fundaztic uses it as part of its credit evaluation process. Bad is defined by CTOS as such: 1) Missed payments with outstanding more than RM200 for 90 days or more 2) Written Off 3) CCRIS Legal Status (Bankruptcy, Summons, Auctions, etc)
The Bad Rate by CTOS is derived from an analytical study on 1 million SME entities from BNM (BNM SME Definition: Under RM50 Million Turn over) using CCRIS and CTOS data. For example, a 5% Bad Rate predicts that the Note will have a 5% chance of defaulting.
Bad Rate， 是 Fundaztic.com 在评估过程中，做为参考的步骤之一。我们采用的报告来自于 CTOS (Malaysia’s leading Credit Reporting Agency)。Bad Rate 是专门为马来西亚中小型企业创建的统计模型。违约的定义是基于巴塞尔II 协助的指引，并定义为: • 逾期超过90天的任何财务信贷额度； 或 • 没能力支付逾期全额于金融机构 有好几种方式可以用来确定，是否一个信贷可以完全支付的可能性。总结, Bad Rate, 可以用来衡量某个中小型企业在未来12个月内，是否会违约的可能性。因此，5%的违约率意味着在未来有5%的违约可能性。换句话说，Bad Rate %越低，风险越低，信用等级也越高。但是，这并不代表利率一定会更低，因为除了Bad Rate之外，还有其他重要因素会影响到借款者所需付的利率。
I realised that I keyed in some wrong information after I have submitted my application. What should I do?
You are not allowed to make modifications after an application has been submitted. Therefore, please email us at [email protected] to amend as necessary for you.
"Varied Key Contract Terms" refers to the document that covers the amendments to the signed key contract terms in the event you managed to achieve at least 80% funding goal but less than 100% of the funding amount at the end of the funding period. Only the funding amount and the monthly repayment amount will change in the supplementary key contract terms.
I own many companies. How many applications can I make simultaneously?
Fundaztic only allows for a maximum of 2 fundings per common owner / partners / guarantor at any one time; provided the 1st successful funding has been promptly serviced (repaid) for at least 12 months or have been fully settled.
Can I invite my family and friends to fund my note?
YES. You are encouraged to do so because it will increase the chances of your funding being successful if supported by more people.
Am I allowed to fund my own note(s) ?
NO. You are not allowed to fund your own notes.
What are the benefits of P2P financing for Entrepreneurs and SMEs?
Fundaztic.com P2P financing aims to provide a simpler and better way to fundraise online. Simpler, because you can leverage a standardized template and easy online processes to apply your fundraising request. Better as you can use the full power of the internet such as digital and social media to market our fundraising activities to raise Investor awareness and encourage their participation.
Who is eligible to raise funds on Fundaztic.com P2P financing platform?
Please find the requirements to be an Issuer below; Your business must be incorporated in Malaysia and registered with SSM. Your business can be registered as a Sole proprietor/Partnership or Private limited companies. Where “issuer” is a private limited company (Sdn Bhd), there need to be a minimum paid up capital of RM20,000 and a minimum of one guarantor holding a minimum of 50% shareholding in the issuer. (Corporate guarantor will not be accepted)
How much money can I raise through Fundaztic P2P platform?
通过Fundaztic P2P平台, 我可以募集多少钱？
You can raise between RM20,000 – RM200,000. However, during the funding application process the requested funding amount will be evaluated and may be adjusted accordingly alongside with other factors such as the size of the business, credit background, existing loans, etc. The final terms and conditions of an approved application will be sent online for acceptance by you before it can be listed for funding. Therefore, you will be fully aware of modifications made during credit evaluation and can decide to accept the modifications and other terms offered.
Can I have more than one Issuer account for my business?
No, each registered business can only have one issuer account with Fundaztic.com P2P financing. Also, your registered business with Fundaztic.com P2P financing must not be hosted concurrently for the same purpose of funding on multiple P2P financing platforms.
You must declare the hosting and the new application for funding via Fundaztic.com must not be for the same purpose.
If I submit a Fundraising application, is it published right away on Fundaztic.com P2P financing website?
No. Only applications that have been approved and terms and conditions accepted by the issuer will be listed in the website.
What do I give Investors in exchange for their investment(s)?
If your fundraising is successful and you manage to raise your target amount (principal), you are expected to repay to the investors the funding principal amount + interest, per the pre-agreed repayment schedule and interest rate.
The Risk Grade is a Fundaztic.com P2P financing proprietary index of the “issuers” risk profile. There are 10 levels: A1 (lowest risk), A2, B3, B4, C5, C6, D7, D8, E9, E10 (highest risk). There are several factors used to assess the risk of an issuer and assigning the Grade. An applicant’s risk grade will determine, amongst other things, the amount of funds that an issuer can raise and the pricing that they must pay.
Can I apply for more than one fundraising campaign at one time?
At any point of time, “issuers” are only allowed a maximum of 2 active funding and up to a maximum of RM100,000 for different purposes. Upon successful and complete repayments, an “issuer” may raise up to a maximum of RM200,000 for different purposes.
Am I able to get the funding as soon as they are committed by the Investors?
No. Before a listing to raise funds is published the “issuer” is given a fundraising period of 10-days. You are only allowed to access “investor” funds if you achieve a minimum 80% of the approved funding amount in “investor” commitments before the expiry of your fundraising period. If you do not achieve the minimum 80% of the approved funding amount, then, the funds will be automatically returned to the “investors”.
How long do I have to reach my target fundraise amount?
Each funding period will be listed for 10-days.
Will everyone be able to see the information posted on the website?
We encourage the Issuers to disclose all the information required to create transparency and raise awareness with prospective Investors. However, Fundaztic.com P2P financing will not disclose the “issuer’s” company name.
If my fundraising is successful, how do I receive their money?
If the fundraising campaign is successful, the funding amount will be disbursed to the bank account you specified during the funding application process.
Will I receive the full funding amount approved?
No, amount to be disbursed will be the funded amount less origination fees and any other charges (such as stamping fees) as well as the 1st month installment. This information will be made known upfront during your application process.
Once your funding is successful, you will be repaying your funds through monthly repayments as per the pre-agreed repayment schedule. These payments can be made via the website using MYCLEAR’s FPX facilities.
Can I repay my funds early and will there be any penalty?
Yes. Early settlements are allowed with no penalties.
Should the Issuer wish to repay a Funding early and end the Funding Contract, they may do so, but they must repay the entire Funding Amount. The Issuer can do so by giving Peoplender fifteen (15) Business Days prior written notice in respect thereof and repaying the full Funding Amount that the Issuer owes to the Investors under the Funding Contracts in respect of the Funding. Peoplender Sdn Bhd shall grant the issuer a rebate on interest upon such early repayment based on the formula below: -
X = Remaining funding tenure (months)
Y = Funding tenure (months)
Total Interest = Funding Amount x Interest rate x tenure (months)/12
如果企业希望尽早偿还资金并终止资金合同，提前还款是被允许的。但企业心须偿 还整个资金金額。企业可以通过提前十五（15）个工作日向Peoplender Sdn Bhd（ Fundaztic 平台运营公司〕发出书面通知，并根据资金合同摊还所有拖欠投资者的全 部资金金額。根据以下公式，Peoplender Sdn Bhd会根据提前还款向企业发出利息回扣：-
X = 剩余的摊还期（月）
Y = 借贷摊还期（月）
总利息 = 资金金额 x 利率 x 摊还期（月）/ 12
Can I make extra repayments towards my funds?
Yes. The extra repayments made will be duly reflected and shall be used to automatically offset the following month’s repayments.
What happens if I miss my monthly installment?
Your funding is made possible by multiple investors and it is your responsibility to make prompt repayments. A 2% late payment fee of the monthly installment amount subject to a minimum of RM80 and maximum of RM250 will be imposed after a 7-days grace period.
Will I be reminded or informed of my late/missed payment?
3 days prior to the due date of your monthly repayment, Fundaztic.com will send a reminder SMS to your registered mobile number. Fundaztic.com will also send SMS notification on missed payment 2 days after the due date to remind for payments.
What will happen if I do not pay back my funding to the Investors?
Your funding is made possible by multiple investors and it is your responsibility to make prompt repayments. Fundaztic will use its internal collection and recovery team and where necessary, a professional 3rd party debt collection agency to collect delinquent accounts. Collection arrangements, whether internal or external are all required to comply with all applicable laws in collecting delinquent accounts of the platform’s issuers. Any charges, legal or otherwise, arising from the deliquency(ies) will have to be borned by you. In addition to this, we will report your monthly repayment status and records to all the major Credit Reporting Agencies in Malaysia.
Your instalment is classified as LATE after 7 days from the payment due date. Currently, all issuers will be given a 7-day grace period from due date to make their monthly repayments. Once the issuer has exceeded the 7-day grace period, only then the Note will be classified as LATE. The grace period may be changed by Fundaztic depending on suitability. Once a payment is classified as LATE, a late penalty fee will be charged to the issuer. All our fees and charges for issuers can be viewed here.
Your payment will be classified as DEFAULT after being LATE for 3 consecutive months. E.g. Note A’s payment due date is on 1st January. If the Issuer of Note A has still not make any payments by the 8th of February (after the 7-day grace period), the Note will then be classified as DEFAULT.
Fundaztic has the full authority on behalf of our investors to pursue recovery actions from defaulted Issuers through legal summons, using recovery services, substituted services and even all the way up to bankruptcy if necessary.
Are my repayment records reported to any authorities?
Yes, Fundaztic reports all our issuer’s repayment status to all THREE credit bureaus in Malaysia. I.e. Credit Bureau Malaysia, CTOS and RAMCI.
会。Fundaztic将会向马来西亚3个主要的信誉机构做出汇报，当中包括，Credit Bureau Malaysia, CTOS and RAMCI。
What are the eligibility criteria that I MUST meet in order to have my application duly considered?
You must own or be a part of a business registered with SSM be it sole proprietorship, partnership or sdn bhd. We do not impose on a minimum number of years in business but you must have a credit history or credit records of AT LEAST 1 YEAR for your credit application to be considered. If you do not have sufficient and good credit track records, we will not be able to fully evaluate your application and it will be rejected.
The CTOS SME Score is a unique credit risk assessment tool that provides Fundaztic extending trade credit information with an effective rank ordering system of credit risk for small and medium-sized enterprises (SME).
This scoring model gives Fundaztic the power to make consistent, objective risk decisions as they assess the credit worthiness of the businesses and owners to which they extend credit, including loans, leases and trade credit.
What are the benefits for Fundaztic using CTOS SME score for its credit evaluation?
Fundaztic使用CTOS SME score进行信用评估有什么好处？
1) The CTOS SME score has a higher GINI Coefficient score compared to other credit models in the market. The GINI Coefficient evaluates the prediction power of the model, which means that the CTOS SME Scorecard has a higher level of predictive accuracy in sieving out between Good and Bad customers.
2) The CTOS SME Score Model is comparatively updated within the market and the model conducts regular calibration in order to stay relevant to the industry. CTOS will also take steps to adapt to any internal and external changes accordingly to ensure consistent and optimal model-based decisions are being made.
3) CTOS SME Score Model uses a Dual Score Methodology which is designed specifically to cater for both Company (Sdn Bhd) and Business (Partnership/Sole Prop) Entities. Companies and Businesses behave differently, hence their respective score model have different key characteristics.
1) 与市场上其他信用模型相比，CTOS SME score的GINI系数更高。 GINI系数评估了模型的预测能力，这意味着CTOS SME scorecard在筛选好客户和坏客户之间具有更高的预测准确性。
Dual Score Methodology caters for both Company (Sdn Bhd) and Business (Partnership/Sole Prop) Entities. Companies and Businesses behave differently, hence their respective score model have different key characteristics. Below are the differences in key characteristics for both Company and Business:-