Peer-to-Peer Financing (P2P)
PEER – TO – PEER FINANCING (P2P)
P2P financing offers an alternative access to funding particularly for businesses and provides retail investors another investment option.
P2P financing is essentially a lending and borrowing activity between businesses and investors, facilitated through an online marketplace i.e. a P2P financing platform operator. The funding needs are met by a group of investors putting in small amounts of money for a particular business need that has been vetted by a P2P financing platform operator.
|Role of a P2P Financing platform operator?||What does it mean for businesses?||What does it mean for investors?|
|Undertakes the role of a “marketplace provider” for both businesses and investors to utilise the platform subject to certain rules.||Offers great funding opportunity to business owners for stable cash-flow||Allows investors to diversify their investments to suit their goals and risk profiles.|
|Must be registered with SC.||There is no funding cap imposed on businesses utilising P2P Financing platforms.||Investors will be able to receive amount of periodic repayments according to the predetermined payment schedule of the investment note.|
|A business will need to raise at least 80% of its target financing amount before the funds are released (any excess amount raised will be returned to the investors).||There is no investment limit imposed on the investors, but retail investors are encouraged to limit their P2P investment exposure at RM50, 000 at any given time.|
Currently there are six registered P2P Financing platforms; they are B2B FinPAL, Ethis Kapital, FundedByMe Malaysia, ManagePay Services, Modalku Ventures (Funding Societies) and Peoplender(Fundaztic).