Frequently Asked Questions

Crowdfunding FAQs – Investors

Q. 1. What is crowdfunding?

Crowdfunding is one way in which businesses can try to raise money from the public in order to fund a business, project or purchase. It typically takes place on a website platform, where money is raised directly from a numerous people putting in relatively smaller amounts of money.

Q. 3. Who can invest in a crowdfunding?

Any investors can invest as long as they are of 18 years of age. All nationalities can invest so long they have a valid personal local bank account for banking transactions.

Q. 5. What are the main risks?

Your capital for each project funded maybe at risk, and there are never any guarantees that you will get the returns or rewards indicated. All investments have different risk profiles and you should always read the offer documents in full and do your research before investing. However, our team at CapMarket takes an active stance in safeguarding your investment from screening of loan origination till collection of loan payment to ensure your investment process with us is as effortless, seamless and rewarding.

Q. 7. How will I be informed of any new project listing?

We will inform our valued investors of any new listings via e-mail notification and on our platform.

Q. 9. Am I entitled to any documents?

All investors will be issued promissory note issued by the borrower with the relevant loan details.

Q. 2. Is CapMarket regulated by MAS?

We are licensed by MAS to operate in Singapore. MAS will admit only platform operators that are assessed to be fit and proper. CapMarket ensure proper segregation of investors’ monies and keep proper records of transactions and we deal fairly with investors in the conduct of their business.

Q. 4. Is there a minimum or maximum amount for investment?

Our minimum investment is $2,000 and there are no maximum amount of investment that an investor can invest with us. All allocation of funds will be done at the discretion of CapMarket and informed investors accordingly of the final allocation.

Q. 6. How does Capmarket assess their borrowers?

Crowdfunding is one way in which businesses can try to raise money from the public in order to fund a business, project or purchase. It typically takes place on a website platform, where money is raised directly from a numerous people putting in relatively smaller amounts of money.

Q. 8. How do I keep track of my investment?

Each investor has their unique portfolio and hence each investor will have their own dashboard to provide a detailed position of their investment at any given time upon logging in for their easy reference.

Q. 10. How are our investors funds safe-guarded?

All our investors’ funds will be ring-fenced and entrusted in an escrow account with Vistra Corporate who is an entity regulated by MAS. All transferring of funds of Vistra account can be only done by trust fund managers from Vistra.

Crowdfunding FAQs – Borrowers

Q. 1. What type of loans can I get?

CapMarket provides bridging loans, working capital loan and business expansion loans. It can be in the form of secured and unsecured loan.

Q. 3. What are the fees am I being charged?

Upon IPA, borrower will need to pay a commitment fee (non-refundable once loan IPA is received) and an administrative fee will be deducted from the loan amount once approved.

Q. 5. What do I need to submit for In-Principle Approval (IPA)

Borrower will need to submit their latest 6 months bank statement of all available banks, NRIC of personal guarantors, business profile (ACRA), Credit Bureau Search (CBS) and Money Lending Credit Bureau (MLCB) of personal guarantors.

Q. 7. How do I keep track of my repayment?

Borrower will be given access to their borrowing account where all payment records will be reflected

Q. 9. How do I receive my loan once it has been fully invested?

Borrower will receive their loan amount via cheque issuance or bank transfer once all legal documents and been signed by borrower.

Q. 2. How do I apply for a loan?

Borrower will need to register themselves through our platform and submit all requested documents as mentioned on our platform via Optical Character Recognition (OCR) to receive an In-Principle Approval (IPA) before our staff will get in contact with you for follow up.

Q. 4. What is the loan amount I am eligible for?

CapMarket provides loan from $10k to $100k and each final loan approval amount is assessed based on the credit-worthiness of the borrower by our Risk Assessor.

Q. 6. Can an individual borrow from CapMarket?

CapMarket only provides loan to private limited companies or LLP.

Q. 8. Am I able to receive the loan once my project listing is accepted by investors?

Your loan amount will only be disbursed only when at least 80% of the loan amount has been taken up within the expire date ( 3-5 working days for raising funds). If the loan amount raised is not sufficient by investors within the time frame, investors investment will be returned to investor and the project listing will be removed from the platform.

Q. 10. How do I make payment?

Depending on the loan tenure taken up, borrower will need to issue post dated cheques to Capmarket to that upon each due date, Capmarket will proceed to bank in the cheque. Eg. Loan tenure of 6 months and payable monthly, borrower will need to issue 6 post-dated cheques.