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

Only Malaysian registered entities that have been in operation for 6 months that are:

  • 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 checking against SSM (Suruhanjaya Syarikat Malaysia) and CTOS (CTOS Data Systems Sdn Bhd).

You will need to upload your business bank statements (and personal bank statements if you think it will improve your credit score), your financial statements and any other documentation that you think may assist us in understanding your business.

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 (Funding Period)?

You have 30, 60 or 90 days to raise your funds (to be chosen by you), 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. You will not be able to drawdown any funds if the amount raised is less than 80% of your target amount. 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 financing amount is available to be drawn-down from microLEAP’s Trust Account.

Once the incoming funds are cleared, we will disburse the financing, less our Hosting 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 (30, 60 or 90 days – to be chosen by you), then you may drawdown your financing.

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.

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 raising funds in the future from microLEAP, banks or any other entity that uses credit agencies .

Can I restructure my financing?

Issuers may restructure their financing only if they are in Default, i.e. have missed their monthly repayment by more than 30 days. 

Note that once in default, CTOS is notified under ‘Trade Reference’ that you are in Default and this will effect your credit rating with CTOS. This will effect your ability to raise future financing from microLEAP as well as banks and other P2P Operators.

We allow Issuers to restructure their financing by extending the tenor by a further 1 to 12 months. This will mean that your monthly repayments are less, but it will also mean that the overall cost of the financing will increase.

Am I allowed to raise more funds?

Depending on your credit risk rating and any financing amount outstanding, you may request for more funds. You are permitted to issue more than one Investment Note provided there you do not breach our financing outstanding limit of RM50,000 per Issuer.

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, profit before tax, 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 measures  the ability that your income is sufficient to pay your monthly debt commitments.

You will also be required to complete a Psychometric Test which allows us to understand your needs and your decision-making, from a credit perspective, better. On average, people take 7 minutes to complete the test.

From the above credit data we will be able to determine the amount and tenor that you can raise funds and also the interest rate that you can be financed 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 financing 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 financing 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 Universal Trustee Malaysia Berhad as its 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 Hosting 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 financed amount in order for you to list your Investment Note on our platform.

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

Hosting Fees are deducted before disbursement of your 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