Malaysian SCF platform opens up to new investors

Published 21 May, 2019

CapitalBay, a Malaysian multi-bank supply chain finance platform, has received regulatory approval to operate a peer-to-peer (P2P) financing platform aimed at improving financing opportunities for the country’s SMEs.

This means that non-institutional – or retail – investors can now join the banks and institutional investors that already provide financing to Malaysian businesses through the CapitalBay platform. Approval was granted by the Securities Commission Malaysia on the matter last week. A go-live date is due in the next three months.

Both Malaysian and foreign investors are able to offer financing through the platform, but only Malaysian businesses can access funds. A CapitalBay spokesperson tells GTR that a cross-border product to allow foreign businesses onto the platform is under development.

CapitalBay specialises in short-term working capital financing, offering products such as invoice financing to SMEs across various industries. Most of the deals on CapitalBay’s platform are backed by invoices due from large institutions such as multinational companies, blue-chip companies and government-linked entities. The platform uses a payment risk scoring model that predicts the risk of each transaction through machine learning.