Frequently Asked Questions (FAQ)

GENERAL

Account

The best way at the moment is to send an email to hi@smartfunding.sg. We are implementing more features on our platform over time, so you will be able to change your basic profile there as well.

You can change it by clicking “Forgot your password” on the login page. You will receive an email to reset your password after.

You can send an email to hi@smartfunding.sg with your name and Investor ID and we will close the account for you.

No, you can currently only own one investor account and one borrower account with SmartFunding.

Yes. However, you will need to register under 2 accounts, i.e., one investor account and one borrower account using separate email addresses.

About SmartFunding

We are a fintech (finance technology) company that connects Investors and Borrowers. We offer alternative short-term financing options for businesses, with 100% focus on SMEs and startups.

Yes, as a Capital Market Services (CMS) License holder, SmartFunding is licensed by the Monetary Authority of Singapore (MAS) to conduct the regulated activity of dealing in securities.

SmartFunding Pte. Ltd. is registered in Singapore (UEN: 201533194W).

Address: 71 Ayer Rajah Crescent #06-04, Singapore 139951.

The best way to reach us is via email (hi@smartfunding.sg)

SmartFunding acts as a platform that matches Borrowers with Investors. This role involves the following:

  1. Pooling of multiple Investors
  2. Credit assessment of Borrowers
  3. Legal servicing and facilitation of transactions
  4. Fund disbursement and monthly repayments collection
  5. Bad debt resolution

We have partnered with an Escrow Agent, Vistra, a licensed trust company regulated by the Monetary Authority of Singapore (MAS) and created an Escrow account for monies transferred by our Investors and Borrowers.

Vistra is ranked among the top three corporate service providers globally.

SmartFunding has in place the following arrangements to protect Investors:

  • Escrow Account
    We have partnered with Vistra and created an Escrow account for monies transferred by our Investors and Borrowers. If SmartFunding must cease its operations, monies held in the Escrow account will not be liable to payments owed by SmartFunding. This also ensures that deposits made by Investors to their Investor Wallet (that are not yet invested) would be returned to them.
  • Backup Provider
    We will partner with a backup provider which, in the event of SmartFunding’s bankruptcy, would take over SmartFunding’s roles and obligations, including the facilitation of payments between our Investors and Borrowers.

Our Escrow agent, Vistra, is a licensed trust company regulated by the Monetary Authority of Singapore (MAS). They act as a middleman to receive, hold, and disburse monies for the transacting parties (i.e., the Investor, Borrower and SmartFunding) based on the predetermined contractual conditions agreed upon by the transacting parties.

Having an escrow agent helps to ensure that monies from the Investors are always kept separately from the operational accounts of SmartFunding. If SmartFunding cease operations, Investor’s monies held in the Escrow account will not be liable to payments owed by SmartFunding. This adds an additional layer of security to Investors.

INVESTOR

Application and Registration

Please click here to understand the fees that SmartFunding charges Investors.

To become an Investor at SmartFunding, you must be aged 21 or above. The application is simple:

  1. Click here and select “1. I want to Invest”. Fill in the online application form on our website.
  2. You will receive a verification email from us. Verify your email by clicking “Activate my account”.
  3. You will then be asked to take a Suitability Assessment Test. The test is designed for us to understand your investment objectives and risk tolerance, and should take less than 3 minutes.
  4. Then, upload the following documents:
    • a coloured copy of your ID (if you are a Singaporean or a Singapore Permanent Resident);
    • a coloured copy of your passport (if you are not a Singaporean or a Singapore Permanent Resident); and
    • a copy of your bank statement (no older than 3 months) showing the account holder’s name, account number and address
  5. Carefully read and agree to the Investor Terms and Conditions, Master Debt Instrument Financing Agreement, and the Risk Disclosure Statement before submitting your application.

You should receive the result of your application within two (2) working days of submitting all your documents.

For Singaporeans and Singapore Permanent Residents (PRs)

  1. Coloured copy of your NRIC (front and back); and
  2. A copy of your bank statement (no older than 3 months) showing the account holder’s name, account number and address.

For non-Singaporean and non-PRs

  1. Coloured copy of your Passport (pages bearing photo, personal details, and signature), and
  2. A copy of your bank statement (no older than 3 months) showing the account holder’s name, account number and address.

Kindly take note that we may require Investors to submit certified true copies of the above documents to comply with the relevant Anti Money Laundering (AML) and Know Your Customers (KYC) laws.

A certified true copy is a copy that has been acknowledged (i.e., stamped or signed) to be a true copy of an original document. It can be obtained with the help of a licensed professional or authority (e.g., a lawyer), or from the very institution that issued the original document.

Yes, you will be able to invest on our platform, but subject to certain country restrictions. You will also need to provide sufficient documentation so that we can verify your identity.

We aim to process applications within 2 working days of receiving all required documents. Depending on the application, processing could take longer than 2 working days.

After your application is approved, you will now become an approved Investor on SmartFunding’s platform. Make your first deposit and start investing!

Platform

The Investor Wallet is a virtual account on our website that shows the Investor’s total funds currently not invested – in other words, the Investor’s ready-to-be-investment amount currently available.

There is no maximum amount Investors can top up. However, Investors should be aware that uninvested funds in their Investor Wallet will not earn them any interest.

You may send us an email at hi@smartfunding.sg notifying your intention to withdraw from your Investor Wallet. It will take up to two (2) business days to process the application and up to another two (2) days to perform the fund transfer.

When requesting the withdrawal, please state your Investor ID and whether you wish a fast transfer (S$0.50 fees to be paid by the Investor with instant transfer within Singapore) or a normal bank transfer (for free, but the transfer can take up to 3 days).

Investors residing outside of Singapore are able to invest on our platform, subject to certain country restrictions and the requirement to provide sufficient documentation for identity verification purposes. When making a bank transfer to SmartFunding’s bank account, please note the following:

  • Deposit of Funds
    The Investor has to bear all the transaction fees, including any charges that SmartFunding’s bank may impose. Also, check beforehand what the expected cost of the transfer is as some banks might charge higher fees.
  • Denomination
    The money that arrives on SmartFunding’s bank account must be denominated in the Singaporean Dollar and has to be at least S$1,000 or a higher amount in full hundreds (e.g. S$5,000/S$5,500/S$10,200 and NOT amounts like S$5,340/S$7,234 etc.).
  • Withdrawal of Funds
    You can withdraw uninvested money from your Investor Wallet anytime with a notice of up to 2 working days (after which we will initiate the transfer). Please note, that all fees for transactions to a foreign bank account will be borne by the Investor. We will transfer the amount in SGD and advise our bank to charge all relevant fees to the Investor’s account.
  • Currency exchange rate risk
    Please be aware that for all transactions we will use the current exchange rate as charged by our bank. All currency exchange rate risk will be borne by the Investor. Hence, it is possible that the currency exchange rate will change to your disadvantage. In addition, all bank charges for international transfers will be borne by Investors. We recommend our Investors to check with their bank on the approximate cost of such a transfer to avoid any surprises.

We provide a comprehensive set of information on each deal. Investors that are registered and logged in to our platform will be able to view a loan sheet for each deal that can help them make their own investment decision before deciding whether to invest or not.

We prepare a loan sheet which discloses, among others, the following information for each deal on the Platform:

  1. The amount of financing sought by the Borrower;
  2. The repayment schedule;
  3. The applicable interest rates;
  4. All fees payable by Borrower and Investors; and
  5. Other information about the Borrower.

Yes. At SmartFunding, we take confidentiality seriously. When investing in an Deal, your information is not provided to the Borrower nor other Investors. We only show Investor IDs in the legal documentation that is distributed to other Investors and the Borrower – and only SmartFunding can match the Investor IDs with the Investors’ names. In short, you and your investment will always remain anonymous.

No. In order to maintain anonymity, you are not allowed to communicate with other Investors or the Borrower.

When a new deal is available on our platform, we always send an email notification and/or text message to inform all our approved Investors about it.

Investing

Currently, we provide only Term Financing and Buy Now, Pay Later (BNPL) for SMEs projects for you to invest in. But we will launch other financing options to on board more SMEs on our platform soon. WhatsApp us for more info!

Term Financing is a loan product which is repaid by the Borrower in equal instalment payments over a set period of time.

As an Investor, you can choose to invest in Term Financing to receive fixed monthly repayments. As a general rule, depending on the credit score of the Borrower, the applicable interest shall be between 8.0%-15.1% per annum on a simple interest basis.

At SmartFunding, all Term Financing loans are repaid in equal monthly instalments, and the term of each Term Financing can be between 12 to 24 months.

The Buy Now, Pay Later For SMEs scheme is purchase financing of goods and services for SME.

SME can apply for purchasing goods and services and get pre-approved on SmartFunding BNPL platform. Once the case is successfully approved and funded, SmartFunding will make payment for the purchase and the SME can make 3-4 instalment payments over a set period of time, usually within 6–9 months depending on the prior agreement set between SmartFunding and SME.

As an Investor, you can choose to invest in BNPL cases to receive periodic repayments.

As a general rule, depending on the credit score of the Borrower, the applicable interest shall be between 8.0%-15.1% per annum on a simple interest basis.

The interest rates applicable to each deal are determined through our thorough credit assessment in order to appropriately reward investors for the risk taken by investing in each deal.

We provide an Annual Percentage Rate (APR) and an Expected Net Return (ENR) for each deal.

Annual Percentage Rate
This is the annualized interest rate that is to be paid by the Borrower under the terms of the debt note.

Expected Net Return
This is the indicative return that Investors will receive after deducting the 20% commission payable to SmartFunding. Kindly take note that the actual net return may depend on other factors such as the occurrence of any early repayment, late repayment etc.

At SmartFunding, we employ both quantitative and qualitative analysis to assess the Borrower’s ability to fulfill debt obligations.

The scope of our credit assessment and due diligence typically include:

  1. Financial analysis on the Borrower’s financials, with an emphasis on the Borrower’s capability to generate cash flow and their existing debt obligations;
  2. Site visits for physical verification of the Borrower’s business;
  3. Interviewing the Borrower and its management to understand the purpose of borrowing and assessing the viability of their business plan;
  4. Conducting credit bureau checks on the Borrower and their shareholders/directors/guarantors to understand their credit history and repayment record, as well as whether there are any outstanding litigations; and
  5. KYC and AML checks on the Borrower and their shareholders/directors/guarantors.

Among others, below are the most common potential risks:

  1. Non-payment by the Borrower.
    The Borrower might fail to make any repayment. Once the Borrower is in default, SmartFunding will, on behalf of the Investors, commence recovery action. Despite all precautions, there exists nonetheless the risk that part or all of the debt is not recoverable, and that Investors may lose all of their invested capital.
  2. Liquidity Risk.
    There is no secondary market for debt securities offered on SmartFunding’s platform. Investors therefore cannot sell or return their investments during the term of the debt securities.
  3. Changes in the Macro-Environment.
    Changes in the macro economic situation could have a negative impact on the repayment ability of Borrowers. A slowdown in the economy or a change in interest rates might have an unexpected effect on the default rate, which in turn would reduce the total returns an Investor receives on his investment.
  4. Foreign Borrowers
    If Investors subscribe to debt securities of a Borrower in a foreign jurisdiction, such investment will be subject to the laws and regulations of that jurisdiction. Investors may be subject to additional tax liabilities, transaction costs and capital controls.
  5. SmartFunding Bankruptcy
    While we take utmost care and precaution to avoid cases of bankruptcy, there still exists the possibility that SmartFunding might be exposed to the risk. Such event has the potential to negatively affect repayment of funds to the Investors. However, we have adopted mitigation measures aimed to minimise the effect of this worst case scenario:

The repayment amount and dates will be provided on the loan sheet of each deal.

Yes, some Borrowers are allowed to make early repayment, subject to them paying an early repayment fee. This will be disclosed in the loan sheet.

Late payments are not uncommon. In general, SmartFunding will immediately get in contact with the Borrower to understand the reason for the late payment.

If a debt is not paid back by the expected repayment date, it will be shown as “delayed” in the Investor’s portfolio overview. For the period that the repayment is overdue, Investors will receive their standard interest, as well as a late payment interest of 0.1% per day on the outstanding loan balance.

If the Borrower continues to default on its repayment, SmartFunding may, upon obtaining consent from the Investors, commence recovery actions against the Borrower on behalf of the Investors.

In addition, in the rare case that we do not receive adequate information and/or communication from the Borrower and perceive the debt security to be at risk of default, SmartFunding may also deem the Borrower to be in default before any actual delay in repayment occurs.

The recovery actions that SmartFunding may undertake on behalf of the Investors include the following:

  1. Appointment of a third-party debt collection agency to recover the amounts outstanding;
  2. Initiate legal proceeding against the Borrower; and/or
  3. Claim against the director/shareholder’s personal guarantee and/or the parent company’s corporate guarantee.

Any cost in relation to the undertaking of the recovery actions shall be borne by the Investors.

Before undertaking any recovery action, SmartFunding will communicate to the Investor the cost to be borne under each recovery option and obtain Investor’s consent to proceed prior to incurring such costs. In such cases, the cost to be borne by each Investor shall be on a pro-rata basis, based on the amounts that they have invested or committed.

Yes. Investors should fully understand the investment product and also the potential risks involved before investing in anything. If you require additional information on investing, we encourage you to seek professional advice.

BORROWER

Loan Application

Currently, we provide only Term Financing and Buy Now, Pay Later (BNPL) for SMEs scheme. But we will launch other types of financing options soon. Contact us for more info!

Only approved Borrowers are able to make loan requests on our Platform.

Step 1
Click here and select “2. I want to seek financing”. Fill in the online application form on our website and carefully read and agree to the Borrowers Terms and Conditions before proceeding.

You will receive a verification email from us. Verify your email by clicking “Activate my account”.

Step 2
Login, fill up and submit further company info and upload documents such as your latest audited financial statements or management accounts. This information is used by our relationship manager to perform preliminary assessment on your financial strength and health.

Step 3
Our officer will get in touch with you to understand your financing needs and advise the further documents that are required to complete your application.

The maximum amount of a loan request depends on our credit assessment. In general, the debt securities on our platform are above $10,000, and do not go above $500,000.

Please click here to understand the fees that SmartFunding charges Borrowers.

The documents required by our officer will differ on a case by case basis. In general, we require the following documents:

  • Copy of latest ACRA Bizfile Business Profile report;
  • Copy of limited liability partnership agreement / memorandum & articles of association (M&A);
  • Certified true copy of Accounts receivable & payables aging list;
  • Certified true copy of financial statements for the last 2 years;
  • Certified true copy of latest management accounts;
  • Proof of local trading address (e.g., utility bills);
  • All company bank statements, sequenced and covering the previous 6 months;
  • IRAS returns filed by company (last 2 years);
  • Certified true copy of photo identification of directors/partners/managing partner (e.g., passport or identity card);
  • IRAS returns for any guarantors (last 2 years);
  • Individual credit report of directors and/or guarantor; and
  • Other documents as may be requested by our credit analyst.

A certified true copy is a copy that has been acknowledged (i.e., stamped or signed) to be a true copy of an original document. It can be obtained with the help of a licensed professional or authority (e.g., a lawyer), or from the very institution that issued the original document. This is to comply with the relevant Anti Money Laundering (AML) and Know Your Customer (KYC) laws.

Typically, a full assessment takes two (2) working days once all documents have been received and all clarifications obtained.

If your application is approved, we will extend a Letter of Offer setting out the terms of the loan, including the loan amount, tenure, interest rate etc.

Once you have accepted the Letter of Offer, you may submit a formal loan request for crowdfunding on our platform.

Our Investors will receive a notification of your loan request and will be able to view a loan sheet disclosing the proposed loan details and your company details. The loan request will be on our Platform for a period of 30 days or until it is 100% funded, whichever earlier (“Loan Request Period”).

At the end of the Loan Request Period, if the loan request received sufficient funding from Investors (typically 70%), then the loan request is successful. You will be required to enter into a debt instrument with the Investors and SmartFunding (where SmartFunding will be acting on behalf of Investors).

Disbursement of the crowdfunded sum (less processing fee) will be made within 2 working days from the signing of the debt instrument.

In general, our Borrowers are companies which fulfil the following criteria:

  • Have been operating for 1+ Years
  • Annual Revenues of at least S$100,000

However, we may also review companies which do not meet the above criteria on a case by case basis. Please  for a free consultation:

Email: hi@smartfunding.sg
Mobile: +65 9782 7165

Yes. There is a late payment interest of 0.1% per day in addition to the standard interest during the default period.

The applicable interest rates are determined through our thorough risk assessment in order to appropriately reward investors for the risk taken by investing in each debt security.

 

We provide Investors with only as much information as judged relevant for them to appropriately assess risk, be it financial or non-financial information.

No, you will not be able to access Investors’ profiles.