Capital Match is an average platform for P2P/crowdfunding SME financing. Its eligibility requirements are less stringent than banks and it helps struggling small businesses by letting them accept funds as little as 50% of their funding goal. This being said, it charges the highest reported interest rates and offers durations of only 3 - 12 months and amounts of limited to S$300,000, all of which could be quite limiting to many types of SMEs.
|Summary of Capital Match Lending Platform|
|Minimum funding to receive funds: 50% of funding goal|
|High interest rates: 15 - 20% annualized|
|Limited financing durations: 3 - 12 months|
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What Makes Capital Match Stand Out to Borrowers
While Capital Match is not the best platform for SME financing, it may be attractive to SMEs that have previously missed previous funding goals due to a few features. First, it lets borrowers accept as little as 50% of pledged funds toward their funding goal. This is the lowest requirement advertised by crowdfunding platforms in Singapore (others require at least 70%), and could help SMEs that may be especially tight on cash. Capital Match also does not require any collateral (assets sold in case of default to repay lenders); instead it requires the SME director to personally guarantee the loan. Additionally, its business requirements, at least S$100,000 in annual revenue and minimum 1 year of operation, are less stringent than those of banks.
However, for many SMEs, there are significant drawbacks to the Capital Match platform. First, it charges higher interest rates (15 - 20%, net of fees) than many other crowdfunding lenders (typically 8 - 17%). Therefore, it may serve better as a last resort of sort. It also offers limited financing amounts (up to S$200,000) and durations (3 - 12 months), compared to other platforms that provide loans up to S$5 million+ and loans up to 24-36 months. Lastly, it does not disclose its the amounts of its processing fee on its website.
The platform does not charge early repayment fees. However, it charges a late payment fee of 1% total principal for delayed payment (0.1% daily late payment interest on outstanding principal). The entire process, from application to cash disbursement takes between 3 and 17 days.
Capital Match Financing Features
|SME Loan||Invoice Financing|
|Financing Amount||S$50,000 - S$300,000||S$50,000 - S$1,000,000|
|Duration||3 - 12 months||3 - 12 months|
|Interest Rate||15 - 20% per year||1.5% per month|
Who Can Borrow: Eligibility Criteria
To be eligible for financing through Capital Match, SMEs must be registered in Singapore as Private Limited (Pte Ltd) or Limited Liability Partnerships (LLP) with at least one director who is Singaporean or a permanent resident of Singapore. Additionally, businesses must have at least S$100,000 in annual revenue and a minimum of 1 year of accounts filed with ACRA or 2 years of trading history.
How to Apply: Application Process
To apply, SMEs must register with Capital Match and submit the required documentation. This includes: financial statements for the last three years and bank statements for the last six months. Capital Match processes applications within 2 - 3 business days and funding can be disbursed as soon as they are raised (1 business day - 2 weeks).