CapBay is one of the latest peer to peer (p2p) financing company in Malaysia. P2p financing is a form of crowdsourcing where individual people pool together money via a platform (eg Capbay) to lend money to a borrower.
Formerly known as Capital Bay, this company has an operating license given by Securities Commission of Malaysia. CapBay is not the only company having such a operating license, there are other peer 2 peer financing companies and the famous ones are Fundaztic and Funding Societies. The lesser known ones which also have an operating license are like Finpayb2b, Alixco, Capsphere and Cofundr.
CapBay advertises itself as a supply chain financing specialist. I'm not a finance guy but supply chain financing is where the the borrower notes are financed based on a business invoice, supplier gets early payment from the funder (Capbay) while the borrower enters into agreement with the funder to repay the notes at an agreed interest rate.
I noticed that the lending requirements for investors/lenders is quite high for this system/app/platform (Capbay), there's a minimum of RM10k RM10,000😲required in your account that you have to maintain to do the auto investments and the minimum lending amount is RM1,000 (some is RM250). However, if you use the auto invest feature, the minimum amount can be RM1,000. These terms is quite a put off for regular small time investors. However, looking at the big picture RM10,000 is a more meaningful sum for investing when starting to invest in any investment vehicles (eg stocks, REITS, ETF, unit trusts, mutual funds). You can't really make any meaningful money with just an RM100, RM1,000 capital.
When I reached out to the people at CapBay they told me that was their differentiating factor because they are more focused towards attracting a different kind of investors and lenders. The RM10k that is banked in is transferred to a trust account as part of p2p licensing requirements by Security Commissions. You are not transferring money into the company, in the event Capbay closes shop, your money (deposit) is still in the trust account.
CapBay offers 3 categories for investment/lending notes namely :
CapBay Diversified - general notes that includes Invoice financing and Capbay Motor.
CapBay Select -Invoice financing but with more scrutiny on the credit grade of the borrower. These notes are very rare compared to Capbay Diversified and Motor.
CapBay Motor - car dealer financing with motor vehicle as collateral. You are basically financing a car dealer to purchase 2nd hand cars to be sold. In the event of a default, the car purchased will be sold off to recover back the monies.
Below note is a sample Capbay motor note. This note is to raise funds for a car dealer to finance him to purchase a Proton Persona 1.6L. The note raise is equivalent to 70% of the value of the car.
While I've signed up with Cap Bay, I've yet to participate in their notes (lending notes) offered. I've heard they have some high profile lenders as their clients. The company (CapBay) has a collaboration with TM (Telekom Malaysia) to provide financing to TM's Perintis program which is TM's vendor financing program. This will most likely be in the form of invoice financing whereby a TM vendor's financing can be provided by Cap Bay based on the amount of invoice project the company has with TM. The company also has JV with TheLorry, a startup delivery company which is a Lazada delivery partner.
I find the way the notes are laid out to investors very clear compared to the other P2P companies like Fundaztic and Funding Society. Capbay's note information has got all the information in 1 single sheet like terms of financing, repayment plans, issuer details and the issuer grade. Issuer grade goes from A-E where A indicates the company has strong credit rating.
For companies that want to take loans from CapBay or raise funds via p2p. Here's the requirements :
- Malaysian registered company
- At least 1 year in operation
- Mid to large corporate customers
- No in liquidation or insolvent
I will update the page as and when I have more updates on this new p2p financing company. So far CapBay boasts of 0% default on their platform, however do not that this company is quite new, only started its p2p operations in 2018. As the platform matures, defaults are expected.
The auto investment (investing bot) option for Capbay is not similar to other p2p platforms (eg Fundaztic, Funding Societies). In the Capbay auto invest system you can only set the target amount to be invested. The target amount is a portion of your deposits which Capbay can use for lending out. The amount of money that is allocated to each note (lender) is determined by Capbay, you do not have control over this setting. For example, when you 1st deposit RM10,000 and you set your target to RM5,000, Capbay can only use RM5,000 to be invested in the notes on their system, the leftover RM5,000 is left in the trust account. If you set RM10,000 as your target, Capbay then can invest the whole RM10,000 for you in the notes.
Difference between CapBay and other P2P Platforms
- Minimum amount to deposit is RM10,000.
- Cannot set minimum investment for each note but you only set the target amount of funds to be invested. This means Capbay will determine how much to put into a particular note but the maximum amount to lend out your money would be the target amount.
- No mobile app yet, only available on web
⚠️WARNING : P2P Lending is very high risk ventures, you are basically lending to a business to operate their business. Business failures happen all the time and this can result and the loan not being able to be paid. Do not invest large sums of money in P2P Lending, use it only to compliment your existing investing and savings strategy.
I've taken a leap of faith to sign up and test this p2p lending platform and will update this blog post from time to time.
Update 20201007
I just found a new note from Capbay in my inbox. The layout of the email is quite eye catching. This loan note is invoice financing.
Invoice financing is a way for businesses to borrow money against the amounts due from customers (
wikipedia). Invoice financing helps businesses improve cash flow, pay employees and suppliers, and reinvest in operations and growth earlier than they could if they had to wait until their customers paid their balances in full. The loan is basically a loan to the company first for them to buy raw material/supplies based on the sales (invoice) they have secured with customer but yet to be paid by customer.
Update 20201214
Caybay's auto invest bost put in RM1,000 into my 1st note. Let's see how the repayment goes in the following months. I got to say I didn't expect Capbay to deploy such a big block of RM1,000 into a single note. I put a target of RM1,000 and the bot invested all in 1 note. For now, it's something I learnt how the auto invest bot works.
Update 20210110
I just invested in my biggest note to date. This note is a grade A note. I put in RM7,500. Will update how it goes here. (Update : This note has been redeemed with my interest 💪 )
Update 20210112
My 1st dividend came in already from one of the notes. The calculated returns from the note seem less than advertised because of fees minus. A lot of fear in the market now since MCO for Jan 2021 in place, hopefully it will not affect my other notes.
One update is government of Malaysia now imposing MCO3 again in Jan 2021, I'm turning cautious mode now. As such, I've disabled (more➡️ my profile ➡️ auto investing setting) auto investing into Capbay Motor and Capbay Diversified. For Capbay Select I still have my auto investing bot turned on. The reason during this period I just want to invest in the most stable notes in Capbay which are all in Capbay Select.
For Capbay Select auto invest, I've still some funds yet to be allocated so I'll just wait for the good notes to appear for now.
20210213
My profits so far, not a lot but ok to me. I'm only investing in Capbay Select notes only. I've disable auto investing into Capbay Diversified and Capbay Motor. Capbay Select notes are the safest notes listed on Capbay. It just means the risk is lower for the notes to default (go bad).
I prefer to go for safer notes as a single default can cause all hard work ahead to go to waste. When the economy recovers further (4Q2021) then I will reconsider it again.
20210226
A few of my invested notes matured and my accumulated returns increased. I'm still adopting a very cautious approach and lend out my money carefully. I noticed borrowing notes in Capbay get snapped up very fast but I not in a hurry and will not fall into FOMO (fear of missing out) and drop a lot of money into the notes.
20210428
So far there on Capbay platform there are no defaults on both my notes and all the notes on their platform but this does not mean in future it will not happen. I suggest to investors to maintain a conservative stance when doing p2p investing.
I also notice CapBay has improved on their auto invest feature to suit people with different risk appetites. If the standard "Conservative", "Moderate" and "Aggressive" mode is not good enough, investors can do custom selection also.
I modified my auto invest to only invest in Capbay Motor and Capbay Select. Not so keen on Capbay diversified at the moment. I'm going in for Capbay Motor because it's a car dealer financing deal. I'm going into Capbay Select as these notes are said to be the safer notes.
20210512
My returns have increase a bit with some notes matured. For my my 2021 strategy moving forward is to lend out cautiously and think like a bank. While I have great confidence the economy will take a U turn back to recovery with a longer time horizon, I see a lot of speed bumps ahead to reach there.
20210529
Times flies, it's been 7 months using Capbay. I've completed many notes. No defaults on my notes yet and I'm quite grateful for that. Government going into a total lockdown for 2 weeks from 1/6/2021, I sincerely hope my investments will be safe.
20210606
Most of the notes I invested finished its tenure and my accumulated returns so far is RM431. So far I'm only opting for very safe notes (Capbay Select with lower interest rates), so my returns is nothing very impressive at only 8.1%. Luckily there's also no defaults my notes on this platform yet. In Malaysia, we're currently still in Fasa1 recovery phase of the covid19 situation, a lot of small medium businesses are not doing very well, as such extra scrutiny is required.
20210703Capbay has just launched a new product call Capbay Assure, it's notes which have a guarantee on its repayment. Capbay will appoint a Guarantee Company to come in and purchase the debt in the event the issuer defaults. The interest rate for this product is not very high, around 4.0 – 6.0%. This is because lenders are effectively trading some potential upside for guaranteed returns. More info on Capbay Assure is
here.
20210731
End of July 2021 and some notes matured bringing my accumulated returns to RM500.
20210831
End of August 2021 and some notes matured bringing my accumulated returns to RM598. I'm still only investing in the most safest of notes as such my returns is dropping in terms of %. Right now Malaysia economy is expected to be in a U shape recovery, however a lot of businesses are still struggling to reopen back.
20210914
Latest returns in September 2021. 1 of my note matured making total returns to reach RM606. I'm getting used to using Capbay mobile app instead of the web based version.
20211001
Times flies very fast, it's already October 2021 already. One of my monthly notes matured and my returns is now RM697. Annual returns still maintained at 8% per annum. So far no defaults on Capbay yet and strategy is to continue putting money is lower risk notes.
I'm also planning to invest in car financing notes (Capbay Motor) but these notes does not seem to appear quite often on Capbay and gets filled up fast. I've been using another p2p platform which is Funding Societies which has more car financing notes. I view these types of notes quite safe and have quite acceptable risk compared to business financing. Hopefully in future Capbay gets more of such notes and I will put more money into car financing notes.
20211101
Returns for November now is RM777 already as we're racing towards the end of 2021. One of my stable notes expired and hence got some interest on it. I'm still cautiously optimistic on the market as businesses are only now starting to recover a bit.
2021201
Returns for December now is RM903 already as we're racing towards the end of 2021. I hope by 2022 I can get RM1,000 returns. So far this p2p platform has no defaults yet.
2022203
Nice ! My 2021 goals for my investments in Capbay p2p met already! Total returns is RM1,033, 0 defaults. My returns dipped slightly (7.9%) but it's ok, still way above fixed deposit rates.
Impressive, Capbay still has managed to maintain a 0% default rate on their notes so far (Jun 2022).
20230806
Time has flown by, and we find ourselves already in the second half of 2023. Due to my busy work schedule and the limited number of notes available on Capbay, I haven't been able to contribute much to my Capbay notes. I prefer not to rely on auto-investing bots for p2p financing because of past experiences with defaults on other platforms (though not on Capbay yet).
In July 2023, I received some profit from a long-term note I had invested in, after deducting the service tax. With that money, I treated myself to a cup of teh tarik. So far, I'm glad to report that I haven't encountered any defaults on the Capbay platform.
➡️ CapBay Referral Invite
🍒 My Capbay referral Invite Code ➡️ 163954 Both of us gets RM 100 upon satisfying the following criteria :
👉🏼 This is how to get your Capbay referral rewards
- Complete registration on the Platform as an ‘Investor’ within the Promotion Period and using the Eligible Referrer’s respective promotion code (“Registration Criteria”);
- Invest a minimum of RM10,000.00 in the Investment Account during the Promotion Period (“Minimum Asset Criteria”);
- Maintain the Minimum Asset Criteria in the Investment Account throughout the Qualifying Period (“Asset Maintenance Criteria”); and
- Set the automatic investment target (“Auto Invest”) of RM10,000.00 or above on the Platform before the end of the Promotion Period and maintain the Auto Invest throughout the Qualifying Period (“Auto Invest Criteria”).
👉🏻Capbay referral sign up link
🔗Links
📱 Support Number (Whatsapp Support)
+6018-7777000
I found the support number quite responsive and my questions were answered accordingly.
💭Ads
If Capbay's requirements is too high, you can consider other p2p financing companies in Malaysia like Funding Societies, Microleap and Funding Societies. The minimum account balance is only RM100 and the minimum investment is also only RM100. There's another company called Fundaztic which you can also consider where the minimum amount to invest is even lower at RM50.
I wrote an article on it here :
My referral link for Fundings Society (to sign up) is :
My referral link for Fundaztic (to sign up) is :
