Moneysave (M) Sdn. Bhd. has recently announced the launch of its Peer-to-Peer (P2P) Crowdfunding platform to assist 40,000 Malaysian SMEs with RM8 billion worth of investments from investors with between 7 and 16% returns per annum in the next 5 years.
According to Chief Executive Officer/Founder, Vincent Soh, “To achieve the target of RM8 billion, Moneysave is only tapping a very small number i.e. approximately 0.33% of Malaysia’s combined deposits and unit trust investors estimated to be around RM2.4 trillion currently. This consists of Malaysia’s unit trust investments of RM500 billion in 2018 (Source: The Federation of Investment Managers Malaysia) and the Malaysian depositor base estimated at RM2 trillion as of March 2020 (Source: Bank Negara Malaysia)”.
“To crowdfund the SMEs, particularly after the Covid19 outbreak which hit the economy badly, Moneysave is hosting investment notes which offer both retail and institutional investors returns between 7% to 16% per annum. We specialise in Trade Invoice Financing which is short term from 30 days to a maximum of 180 days with up to 85% margin of the invoice value. For example, an Invoice Value of RM100,000 can be crowdfunded up to RM85,000,” he added.
Moneysave is also believed to be the first P2P crowdfunding platform in the world to offer multi risk reduction investment strategies to lower the risk of investments. It allows its investors to select and filter investment notes based on 8 Multiple Risk Reduction Strategies as per Table 1 below.
Moneysave offers a FREE and convenient investment platform that allows investors to register and start investing in less than 3 minutes through its 100% online portal which is accessible 24/7 globally. It also allows SMEs to apply for the funding request and receive a conditional approval from Moneysave within 3 minutes.
During its first week of business, Moneysave hosted investment notes for a variety of companies including Online Pet Specialist (‘A’ Rating with 10.75% p.a. returns), Energy Saving Engineering Firm (‘A’ Rating with 9.50% p.a. returns) and Trademark and Intellectual Property Specialist (‘C’ Rating with 10.25% p.a. returns) and has in its pipeline companies such as IT Hardware Supplier, Security Chip Specialists, Green Water Systems Specialists, Marine and Oil Bunkering Supplier, Accounting Firm and Telco Tower Contractor. The paymasters or clients of the SMEs are mostly BURSA Listed companies and Government Linked Companies and Agencies.
In order to lower the cost of financing, the SMEs would be rewarded with incentives if they perform or meet certain risk reduction criteria. The description of the various risk reduction criteria and its respective incentives awarded to the SMEs are as per Table 2 below. The maximum incentive that can be awarded to any single investment note is 5% p.a. at any time.
Investors would in return get to filter and choose investment notes based on the various risk reduction criteria met by the respective SMEs, thus reducing their investments risks.
To further safeguard the Investors, all investment monies are transferred to and are held in Investor Trust Accounts custodised by Maybank Trustees Berhad. Moneysave’s P2P Platform is also regulated by the Securities Commission of Malaysia.
Soh added, Moneysave aims to expand its business in Indonesia and other ASEAN countries in the next three years. At the moment, the platform is preparing its submission to the Securities Commission of Malaysia to be a Shariah Compliant P2P Crowdfunding Platform by August 2020.
Soh aspires for Moneysave to be the top P2P platform in Malaysia and Asia specialising in the Supply Chain Financing of Trade Invoice/Receivables Financing where Issues or Small Medium Enterprises (SMEs) come to Moneysave’s platform to seek financing by selling their Trade Invoices or Trade Receivables.