Issuer FAQ

Why shall I apply for P2P financing?

If your company is growing fast, it is often difficult to obtain financing due to certain restrictions by traditional financial institutions. With financing from the crowd (P2P) your company may enjoy less hassle and better interest rates with this alternative way of financing.

How to get started?

Please click on the Sign-Up link and follow the steps by step process.

Who can be the issuer?

An issuer can be sole proprietorships, partnerships, limited liability partnerships, private limited and non-listed public companies. The following entities are prohibited from raising funds through a P2P platform:
(a) Commercially or financially complex structures (i.e. investment fund companies or financial institutions)
(b) Public-listed companies and their subsidiaries;
(c) Companies with no specific business plan or its business plan is to merge or acquire an unidentified entity (i.e. blind pool)
(d) Companies that propose to use the funds raised to provide loans or make investment in other entities
(e) Any other type of entity that is specified by the SC.

Is there a minimum an issuer can raise?

Currently, the minimum amount for financing is RM 50,000.

How much money can an issuer raise?

There is no limit on how much an issuer raise on the platform. However, an issuer will fail to obtain any fund from the platform if less than 80% of its target amount is subscribed by investors. On the other hand, it will not obtain anything more than its target amount even if the fundraising is oversubscribed. Please note that the amount an issuer is seeking to raise is furthermore subject to our credit capacity check and approval.

Why do you require documents?

The documents are required to comply with regulations, perform identity and verification checks and to check the financial viability of the campaign. Rest assured that we will treat your documents with discretion.

Over what timeframe can I raise finance?

Currently, financing tenures are limited between 1 months to 24months. Alixco is working on offering tenures with different time spans for both short-term and long-term financing.

How many details will investors see about my campaign?

At Alixco, we aim to be as transparent as possible for both investors and issuers. This might also help investors on the platform get more confidence in financing your business. Investors will be able to see your company name, business description, incorporation numbers, risk evaluation, the amount you seek to raise, the interest rate, loan tenure, purpose of the loan and a few key financial metrics such as revenue/earnings growth, EBIT and cash flow.

How much time does it take to prepare and launch the campaign?

Depending on how much information the issuer has lined up, it would take about 2-6 weeks to create a campaign. If you have a business plan and budget ready and a team to help you with the presentation, the process will be relatively fast.

How long does it take to find investors?

This depends on a variety of factors such as the amount an issuer seeks for financing, the interest rate and the strength of the business. Campaigns will be left open for financing for up to 30 calendar days. Strong campaigns might already close within hours!

When will be the monthly repayment date?

Monthly repayment dates will be set on the date of disbursal of the fund to your account.

What interest rates can I expect to pay?

We aim to give you the best and most competitive rates possible. 8-12 % p.a. is the median. Businesses with very strong fundamentals might be financed at 5% p.a. whereas higher risk issuers will be charged up to 16% if accepted.

How is the interest rate calculated?

We will aim to give you competitive ratings and calculate the interest rate based on the riskiness of the issuer’s business (risk-based pricing). This includes both quantitative and qualitative criteria which are specified in our proprietary algorithm and will then be matched with our risk-based table.

How are repayments done?

Repayments are equal monthly instalments.

How much does Alixco P2P Financing charge?

Alixco charges an origination fee of the total amount financed of between 2-6%. The fee is dependent on the riskiness of the issuer, tenure, investment size and any additional services requested by the issuer.

There are also upfront due diligence fee to pay upon applying the financing: RM 100 per director (non-refundable)

Retention charge: a retention charge will be deducted from the financing amount (successfully financed) from issuers to cover for administrative charges in the event of default. This charge is fully refundable and will be returned to the issuer in case the issuer does not default on any payments and does not have any late payments. Usually this retention charge amounts to RM 500 per month of the financing tenure. The retention charge may vary and be higher in case of certain high-risk P2P investment notes (usually grade C p2p investment notes).

How does AlixCo assess my creditworthiness?

Alixco assesses a businesses’ creditworthiness according to a set of quantitative and qualitative criteria. The quantitative part includes an assessment of key financial ratios and financial statements. AlixCo will also perform a check on the issuer’s creditworthiness with a leading credit rating agency.

Why was my application declined?

You are very happy to reapply. Maybe your business was not ready yet. Alixco reserves the right to decline a campaign in certain cases such as: weak credit score of company.

Do you require collaterals?

Yes, we will require a personal guarantee by all directors, at least minimum of two guarantors. This serves as a positive signal to investors of the good intention of the issuer to repay the outstanding amount.