Frequently asked questions & answers for prospective issuers who would like to get financing from Fundaztic platform.
We have created a step-by-step guide to assist you with registering your business on Fundaztic.com
Click here: Business Registration Guide (pdf)
Fundaztic SG is fully owned by Fundaztic SG Pte Ltd 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 Fundaztic SG Pte Ltd. 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 at [email protected] to ensure that you are dealing with authorised personnel.
Please find the requirements to be an Issuer below; Your business must be incorporated in Singapore. Your business has to be registered as a Sole proprietorship, Partnership or Private limited companies. Where “issuer” is a private limited company (Pte Ltd), there need to have a minimum paid up capital of S$20,000 and a minimum of one guarantor holding a minimum of 51% shareholding by a Singapore resident (citizen/PR) in the issuer. (Corporate guarantor will not be accepted)
You must own or be a part of a business registered with ACRA be it sole proprietorship, partnership or Pte Ltd. We do not impose on a minimum number of years in business but you must have a credit history or credit records that are captured and scored by Experian Credit Services Singapore Pte Ltd before for the credit application to be considered. If you do not have sufficient credit track records, we will not be able to fully evaluate your application and it will be rejected.
Loans raised via the platform can be for any working capital requirement. Business owners should look to utilizing the platform as a funding tool for its business expansion and operations.
We do not recommend business owners raising funds via Fundaztic to refinance its existing bank loans, given the higher interest rate payable on P2P funding vis-à-vis bank loans.
You are not allowed to raise funds via the platform to repay any of your business’ loans which are overdue.
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.
Fundaztic.com 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 supported by more people.
NO. You are not allowed to fund your own notes.
You can raise between S$20,000 – S$200,000. 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.
No, each registered business can only have one issuer account with Fundaztic.com. Also, your registered business with Fundaztic.com 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 will determine your interest rate according to your Risk Grade using our credit scorecard and evaluation process.
The Risk Grade is a Fundaztic.com proprietary index of the “issuers” risk profile. There are 7 levels: A (lower risk), B, C, D, E, F, G (higher risk). Grades are determined via assessment of data points including repayment history, probability of default and other info extracted from credit bureau data along with site visit and also business plan submission. 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.
At any point of time, “issuers” are only allowed a maximum of 2 active funding and up to a maximum of S$100,000 for different purposes. Upon successful and complete repayments, an “issuer” may raise up to a maximum of S$200,000 for different purposes.
No. Funding raises is only accessible upon either: –
i. Hitting 100% of the funding amount anytime during the funding period.
ii. Achieving at least 80% of the financing amount by the end of the funding period.
If you do not achieve the minimum 80% of the approved funding amount, then, the funds will be automatically returned to the “investors”
Funding period is 30 days, subject to change as advised by Fundaztic.com
We encourage the Issuers to disclose all the information required to create transparency and raise awareness with prospective Investors. However, Fundaztic.com 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, 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 will have to be made via the website using Paynow QR 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 Fundaztic SG fifteen (15) Business Days prior written notice in respect thereof and you have paid, in full, at least twelve (12) monthly installments under a Funding Contract that is not a Bullet Repayment Funding Contract, including any and all outstanding and overdue installments as at the time of the written notice. Fundaztic SG 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
Any additional payment received above what is due for the current month will be used to knock off the next month repayment when due.
Your funding is made possible by multiple investors and it is your responsibility to make prompt repayments. A 2.5% late payment fee of the monthly installment amount subject to a minimum of S$100 and maximum of S$250 will be imposed after payment due date.
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.
It is your responsibility to ensure payment on your loan is prompt. Fundaztic.com will utilise its internal collection and recovery team to follow up on payments that are due and continues to be outstanding. Fundaztic.com will also look to appoint licensed debt collection agencies to recover amount that are overdue and or take legal action against the Issuer and its respective guarantors to recover amount owing if necessary. Any charges, legal or otherwise, arising from such collections shall be borne by you. We will also be updating the your monthly repayment status and records to Experian Credit Services Singapore Pte Ltd, Singapore.
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 SG 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.com has the full authority to act on behalf of its Investors to pursue necessary actions to recover amount owing from defaulting Issuers. This can be via internal negotiation for a repayment, outsourcing of the collection to licensed 3rd party debt collector, and also proceeding with legal action against the issuer and also its guarantors to recover the amount owing.