Frequently asked questions & answers for prospective issuers who would like to get financing from Fundaztic platform.
Fundaztic is fully owned by Peoplender Sdn. Bhd. and Fundaztic represents the brand, domain and app name, not the company name itself. You are advised to check and verify firstly if the company and representatives dealing with you are employees of Peoplender Sdn. Bhd. You should also be aware that all our transactions are exclusively online via the app with no exchange of any physical cash in any form at any point in time. Do contact us to ensure that you are dealing with authorised personnel.
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.
You are not allowed to make modifications after an application has been submitted.
Please email us at [email protected] should you need to amend your submitted application.
“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.
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.
YES. You are encouraged to do so because it will increase the chances of your funding being successful if it is supported by more people.
NO. You are not allowed to fund your own notes.
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.
The requirements to be an Issuer are as 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 if “issuer” is a private limited company (Sdn Bhd), there needs to be a minimum paid up capital of RM20,000 and total guarantors (must be Malaysian Residents) holding a total of 51% shareholding in the issuer. (Corporate guarantor will not be accepted)
For the time being, Limited Liability Partnerships are not eligible. Our business model, among other things, relies on CTOS SME Score to make credit decisions. As CTOS SME Score is presently not available for Limited Liability Partnerships, Fundaztic will not be able to assess your credit application if you apply.
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. You will be fully aware of modifications made during credit evaluation and can decide to accept the modifications and other terms offered.
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.
No. Only applications that have been approved and terms and conditions accepted by the issuer will be listed in the website.
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.
Fundaztic.com P2P financing will determine your interest rate according to your Risk Grade using our credit scorecard and evaluation process.
Fundaztic Assigns A1 to X1 to each note based on issuer’s credit quality and underlying risk. The riskiest notes have the highest interest rates, which reflect potentially higher loss rates. In order to manage overall risks in investing, it is better to select from a combination of notes ranging from A1 to X1.
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.
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”.
Each funding period will be listed for 10-days.
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 the fundraising campaign is successful, the funding amount will be disbursed to the bank account you specified during the funding application process.
NO. The amount to be disbursed to the issuer will be the funded amount, minus the origination fees, other charges (such as stamping fees) and as well as the 1st month installment.
This information will be disclosed 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.
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 Sdn. Bhd. a notice in writing fifteen (15) Business Days prior 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
Yes. The extra repayments made will be duly reflected and shall be used to automatically offset the following month’s repayments.
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-day grace period.
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 a SMS notification to your registered mobile number about missed payments 2 days after the due date to remind you on your outstanding payments.
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 installment will be 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, 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 classified as LATE for 3 consecutive months (91 days past due).
E.g. Note A’s payment due date is on 1st January. If the Issuer of Note A has still not made any payments by the 1st of April, the Note will then be classified as DEFAULT.
Debts are not extinguished when a debtor passes away. The debt must be paid from any assets in the estate of the deceased before distribution is made to the beneficiaries. Peoplender will commence legal action against the estate of the deceased to recover the amount owed under the funding contract and will also lodge a caveat with the court to prevent distribution of assets without repayment of debts being made first.
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.
Yes, Fundaztic reports all our issuer’s repayment status to all THREE credit bureaus in Malaysia. I.e. Credit Bureau Malaysia, CTOS and RAMCI.
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 and objective risk assessments when examining the credit worthiness of the businesses and owners to which Fundaztic extends credit, including loans, leases and trade credit.
For more information please click on the following link:
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.
The Smart Invest feature is currently not available for Secondary Market. It will not pick up Notes hosted on the Secondary Market for investing.
“Investment note” refers to the promissory notes sealed between the “issuer” and “investor” to manage the risks involved in funding the “issuer”. It is a short term debt security with a maturity of between 3 months to 5 years. This legal document obligates the “issuer” to repay the funding that it has obtained via the investments of multiple “investors” based on specific terms and conditions of repayments failing which, depending on severity, Fundaztic.com may seek to pursue recovery actions permissible by law on behalf of the “investors” to recover funds issued.
YES. It is possible for businesses registered with SSM to be both an “issuer” and “investor” at the same time. However, individuals can only be “investors” and the current guidelines on P2P financing issued by the Securities Commission (SC) only allow businesses or SMEs to raise funds / become “issuers”.