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Who is allowed to raise funds on microLEAP's platform?

Only Malaysian registered:

  • sole proprietorships (enterprises)
  • partnerships
  • incorporated limited liability partnerships
  • private limited companies
  • unlisted public companies

will be allowed to be hosted on microLEAP.

Note: Under SC rules, there is no personal financing allowed on P2P platforms.

Who is not allowed to raise funds on microLEAP's platform?

The following entities are prohibited from raising funds through microLEAP:

  • Commercially or financially complex structures (i.e. investment fund companies or financial institutions)
  • Public-listed companies and their subsidiaries
  • Companies with no specific business plan or its business plan is to merge or acquire an unidentified entity (i.e. blind pool)
  • Companies that propose to use the funds raised to provide loans or make investment in other entities
  • Any other type of entity that is specified by the SC.

Note: Under SC rules, there is no personal financing allowed on P2P platforms.

How do I apply to be an Issuer (Borrower)?

All you have to do is to apply online on your PC, laptop or mobile phone. We will need to verify your identity by uploading your IC or Passport (if you are non-Malaysian) and we need to verify your company by uploading its constitutive documents.

Constitutive documents include Form A or B for Sole Proprietorships (Enterprises); Form 9, 24, 44 and 49 for Companies and Certificate of Registration for LLPs.

For document upload: clear pictures or scanned copies will suffice.

What Information will be shared to P2P Investors?

When an Investment Note is listed on our Funding List, the following information will be shared:

  • Partial name of business
  • Nature of business
  • Request for Funds amount, tenor, interest rate and its purpose
  • Credit Risk Score
  • Picture of the applicant and business premises
  • A short description provided by the applicant describing the business, business owner or any other facts that the applicant may want to share
  • Number of Guarantors (if applicable)

It is important for P2P Investors to know the person and the business so that your personality shines through the Investment Note.

Once a P2P Investor has agreed to invest into an Investment Note, a Term Sheet will be provided which forms the Funding Contract between the Investor and the Issuer. This will have further information which is contractual in nature.

Should I make my Investment Note Anonymous?

We highly encourage all our Issuers to choose ‘No’. microLEAP aims to be different from all the other P2P Financing platforms out there and the personal touch is what sets us apart from the rest. We will only show your profile picture and show a partial name of your business. P2P Investors are more likely to invest in your Note if they see a warm friendly face and know that you have nothing to hide.

Can I list on multiple P2P platforms or together on an ECF platform?

An Issuer shall not be allowed to list their Investment Note concurrently for the same purpose on multiple P2P platforms.

An Issuer may be permitted to list on a P2P platform and an ECF platform at the same time, however, this must be clearly disclosed to microLEAP and its P2P Investors before listing.

How much time do I have to raise my funds?

You have 30, 60 or 90 days to raise your funds, called the Funding Period, from our P2P Investors.

microLEAP will have the sole discretion to add an additional 15 days to the Funding Period if we see that the funds raised is close to completion.

What if I don't raise the amount requested?

If you do not raise at least 80% of your Request for Funds by the end of the Funding Period, then your fund raising was unsuccessful and you will need to re-apply for Request for Funds.

microLEAP will have the sole discretion to add an additional 15 days to the Funding Period if we see that the funds raised is close to 80% complete.

Am I allowed to raise more than I requested?

No. Under SC rules, the Issuer is not allowed to keep any amount which exceeds the initial target amount.

What happens once I have raised the amount requested?

If you have managed to raise at least 80% of your Request for Funds by the end of the Funding Period or you have managed to raise 100% of your Request for Funds before the end of the Funding Period, then your loan amount is available to be drawn-down from microLEAP’s Trust Account.

Once the incoming funds are cleared, we will disburse the loan, less our Listing Fee, to your business bank account as it states in your application.

When can I drawdown and when do I start my repayments?

Once you have raised the full amount requested or at least 80% by the end of the Funding Period, then you may drawdown your loan.

Repayments of Principal and Interest are done on a monthly basis and will start one month after drawdown.

Repayments may be done by Direct Debit, via our FPX payment gateway (online) or manually into our Maybank Trust account.

What happens if I am late in my monthly repayments?

There is a seven (7) day grace period for late payments.

After the seven (7) grace period has lapsed, a late payment fee of 1% per day for the number of days overdue will be levied on the monthly repayment amount subject to a minimum of RM30.

If the Issuer does not settle their repayments after 30 days, then it is considered that the Issuer is in Default. We may attempt to restructure the repayments to minimize any loss to P2P Investors. Failing that, we will outsource the debt collection to a third-party Debt Collection Agency and if there is still no resolution then we will be forced to take legal action as a last resort.

CTOS and other credit agencies will be notified of your default. This may hinder your chances of borrowing funds in the future from microLEAP, banks or any other entity that uses credit agencies .

Am I allowed to raise more funds?

Depending on your credit risk rating and any loan amount outstanding, you may request for more funds. You are permitted to issue more than one Investment Note provided there is sufficient limit.

How am I credit scored?

All Issuers are credit scored using our proprietary credit scoring engine. This allows our P2P Investors to make an informed decision before they make an investment.

Factors we will look at include your revenue, current outstanding debt, your credit history, your nature of industry and age of your business. We will also look at your Debt Service Ratio, which helps us see the ability that you can service your debt.

From the above credit data we will be able to determine the amount and tenor that you can borrow and also the interest rate that you can borrow at.

Note: The ability to pay your monthly repayments on time will also improve your overall credit risk rating for future Investment Notes issued on microLEAP

How does my Investment Note get on the Funding List?

After you and your business is credit scored, you will be given a Funding Contract that lists our terms, the approved funding amount, interest rate, tenor and other important aspects of your loan. You will then need to fill in a simple Q&A that tells potential P2P Investors about your business.

Once done, your Investment Note is generated and it is listed on our Funding List for P2P Investors to invest in.

Why am I provided microinsurance?

All Issuers, be it the applicant or key person appointed by you, will have Personal Accident insurance up to the outstanding loan amount that you have raised. This is provided by microLEAP via our Insurance Partner at no extra cost to you.

So in the case of accidental death or total / partial disablement, our Insurance Partner will cover the outstanding loan amount and microLEAP will arrange the pay out to all P2P Investors.

This ensures that you can focus on what you do best – expanding your business!

For more information head on over to our microinsurance tab.

Why does microLEAP use Trust Accounts?

microLEAP, being a platform that matches Issuers with P2P Investors, is in the process of handling client funds. In that respect, it is very important for client funds to be segregated and separate from microLEAP’s own funds so that both sets of funds never intermingle. To ensure this, microLEAP has appointed a Trustee to be the custodian of client funds.

microLEAP has two (2) trust accounts. The Investor Trust Account, where P2P Investors’ funds are kept before disbursement of the loan, and the Issuer Trust Account, where Issuers pay their monthly repayments into.

What are microLEAP's fees?

As an Issuer, microLEAP will charge you 2 types of fees:

  1. On application, we will charge a small Application Fee of only RM50 in order for us to carry out KYC (Know Your Customer) and Credit Checks.
  2. Once you pass the Due Diligence and Credit Checks, we charge a Listing Fee of 2% – 8% (equivalent 0.67%p.a to 2.67%p.a. if spread over the max tenor of 3 years) on your borrowed amount in order for you to list your Investment Note on our platform.

Note: Listing Fees are charged on a one-off basis and they are dependent on the size of issue, drawdown history with microLEAP, and credit rating.

Listing Fees are deducted before disbursement of your borrowed funds.

What are microLEAP's value-added services?

As an Issuer on microLEAP’s platform, below are the services we provide at no extra costs:

  1. microinsurance in the form of Personal Accident insurance to the business owner or key person
  2. Basic debt management and basic accounting training online to all Issuers (offered in English and Bahasa Malaysia)
  3. For Islamic Investment Notes, the Commodity Murabahah brokerage fee is absorbed by microLEAP