To be an investor with Cofundr, you need to:
Be at least 18 years of age;
Be a Malaysian Tax Resident;
Possess valid identification (such as Malaysian NRIC or a valid Passport);
Have a valid e-mail address;
Have a bank account held with a licensed financial institution in Malaysia.
Yes, Cofundr accepts both individual and corporate investors.
Individual Investors are required to provide:
- Their NRIC information;
- Upload the front and back of their NRIC;
- Provide their bank details along with their bank statements (which clearly display the bank account number, account holder’s name, address and bank logo).
Corporate investors are required to provide information such as:
- Company name;
- Business registration number;
- Details of the person representing the company on Cofundr’s platform; and
- Other documentations such as bank account details, bank statement and a board resolution authorising the registration and investments.
For Premium Financing, Cofundr will apply its proprietary Financial Ratio Analysis in assessing each Issuer which include assessing the growth, profitability and working capital of the issuers; coupled with reference to credit reports from Credit Rating Agencies in determining the overall Credit Score and Probability of Default (PD) of the Issuer. Furthermore, Cofundr will also be performing background checks on the stakeholders of the entity (such as performing credit litigation history checks against the company and its directors) as part of the process in assessing the credit risk of the issuers.
For Working Capital Financing, Cofundr will base its assessment on credit reports obtained from Credit Rating Agencies in determining the overall Credit Score and Probability of Default (PD) of the Issuer. In addition, Cofundr will also base its assessment on the outcome of the background checks on the stakeholders of the entity (such as performing credit litigation history checks against the company and its directors) as part of the process in assessing the credit risk of the issuers.
Investors are unable to cancel their confirmed investments once it has been made as this action would likely hamper the fundraising process and further delay funds from being disbursed to issuers in a timely manner.
Yes, the interest income earned from investments on Cofundr is taxable. We encourage you to consult your tax advisor on this matter.
If the minimum 80% funding amount is not met, the fundraising campaign would be cancelled, and all monies placed would be disbursed back to the investors’ account on the Platform within the next business day.
Yes, there is a minimal transaction fee payable by investors when they effect a withdrawal. This transaction fee is used to cover the fee charged by the Bank/Trustee and the cost to process the withdrawal. Please refer to the Schedule of Fees and Charges for more information.
To invest, the minimum investment sum is RM100.00. As for the maximum investment sum, there is currently no limit set. However, Cofundr encourages its individual investors to limit their investments to RM50,000.00 at any one point. Nevertheless, if the individual Investors desire to invest more than the guided amount, a gentle reminder regarding the inherent risks involved will be sent as an advice to them.
Angel investor are defined as:
A tax resident of Malaysia;
Has a total net personal asset exceeding RM3 million OR;
Whose gross total annual income is not less than RM180,000.00 OR;
Who, jointly with his or her spouse has a gross total annual income exceeding RM250,000.00 or its equivalent.
Cofundr will be providing Investors with a fact sheet that contains relevant information pertaining to the Issuer’s background, financial performance, purpose of funding and Cofundr’s assessment of its creditworthiness consisting of a risk rating and the Probability of Default (PD).
Yes, the issuer can settle the Note early, but they will be subject to an early repayment fee payable to Cofundr. In addition, the issuer will need to serve an irrevocable notice of 20 days in advance to the investors (via the Platform) on its intention to settle the outstanding note early.
For Premium Financing, a Note is classified as defaulted if the Issuer fails to repay the outstanding amount and the late interest charges accrued after 1 calendar month+15 days from the repayment due date.
For Working Capital, a Note is classified as defaulted if no repayment of the outstanding amount and any late interest charges accrued has been received from the Issuer after 3 calendar months from the repayment due date.
Yes, investors would be notified about their investment status via monthly e-mail updates and dashboard notifications.
In the event of a late repayment by the Issuer, Cofundr will closely monitor the situation and follow-up with the issuer with regular calls in order to collect on the repayment due. Apart from that, Cofundr will also impose a late interest charge on the outstanding amount.
In the event of a default by the Issuer, Cofundr may consider implementing a debt restructuring plan in order to aid the Issuer in fulfilling their repayment obligations (on a case-by-case basis). However, if the Issuer continues to default, fail, neglect, delay to pay or pay partially on the subsequent repayment date, Cofundr reserves its right to proceed with its default recovery measures which may include but not limited to engaging a licensed Debt Collection Agency and/or to proceed with legal proceedings to recover the outstanding amount.
In an attempt to recover the defaulted Note, Cofundr may consider implementing a restructuring and rescheduling process for the issuer. These considerations may include:
Payment reprieve up to 60 - 90 days, and/or
Extension of the Note tenure
Whichever the case may be, each restructuring plan will be reviewed on a case-by-case basis with the objective of protecting the interest of the investors and with the focus of recovering the outstanding Principal Subscription Amount. As such, investors are to be mindful that there is a possibility that they may be impacted by a delay in the return of their investments.
There will not be any charges incurred by Investors for the implementation of a debt restructuring and rescheduling process in the event of a default on the Note. Additionally, any out-of-pocket expenses (such as legal fees, stamp duty etc.) will be borne by the Issuer.
In the event of a default on the Note by the Issuer, Cofundr will reserve its right to proceed with its default recovery measures which may include but not limited to engaging a licensed Debt Collection Agency and/or to proceed with legal proceedings to recover the outstanding amounts.
Cofundr will try to recover the outstanding debt and the estimated related legal costs/service fees from the issuer. In the event such an objective is achieved, then the legal cost/service fee incurred is deducted from the total sum recovered and the balance is returned to the investors respectively. However, in the event the recovery effort is unsuccessful, then the legal fees or costs related to the recovery will be borne by Cofundr.
Upon repayment by the Issuer, the total sum repaid would be immediately credited into the Investors’ account respectively according to their investment amount on a proportionate basis. However, if there are any discrepancies that require further review then there may be delays of 1-2 business days.
Yes, all investments made on the Cofundr platform are bound by contract. For more information, please refer to the Investor’s Terms and Conditions provided.
During the promotional campaign, investors would be provided fact sheets regarding the financing notes requested by issuers that contain detailed information including the Issuer’s background, the purpose for funding, financial performance and Cofundr’s assessment of creditworthiness consisting of a risk rating along with the Probability of Default (PD).
The interest rates between campaigns differ because the credit risk of each note is based on the risk rating of the issuer and its Probability of Default (PD).
In the unlikely event Cofundr ceases operation, all on-going notes, subscriptions and fund placements will be suspended on the platform. Cofundr will then initiate its ‘Living Will’ plan to appoint a 3rd Party Licensed Collection Agency to manage all outstanding repayments by issuers and ensure all of the funds placed in Cofundr’s trust account will be refunded back to investors.