Cofundr specialises in ‘General Insurance Premium Financing’ and ‘Working Capital Financing’.

  • For Working Capital Financing, Cofundr provides issuers with a list of different repayment options which include:

    • ‘Equal Monthly Instalments’ – Issuers shall repay both the principal amount and interest in instalments over the tenure of the Note with an option for early redemption.
    • ‘Bullet Repayment’– Issuers shall repay the full lump sum payment of principal and interest at the end of the tenure.
    • ‘Interest only’ – A repayment type where interest on the Note is paid on a monthly basis whilst the principal is paid at the end of the tenure.
    • ‘Callable’ – Similar to ‘Interest only’ repayment type but comes with an early redemption/callable option.
  • However, for Premium Financing, Cofundr only offers an ‘Equal Monthly Instalments’ repayment scheme whereby the Issuers shall repay both the principal and interest instalments over the tenure of the Note with an option for early redemption.

Issuers who wish to request for financing are required to submit:

  • Their company profile;

  • The latest audited accounts and/or management accounts

  • Past 6 months bank statements

  • Consent to Credit Background check

  • Board Resolution;

  • Any other statutory document necessary to facilitate the financing request.

  • Issuers are required to pay a one-time, non-refundable onboarding fee of RM200.00 upon application for a financing request with Cofundr. This onboarding fee is applicable in order to cover the cost of conducting the relevant credit and background checks on the Issuers respectively.

  • Furthermore, there is also a success fee payable upon successful disbursement of the financing amount to the Issuer or prior to disbursement to the Designated Recipient. To find out more, please refer to the Schedule of Fees and Charges.

Issuers are able to apply for financing of a minimum sum of RM10,000.00 and there is no maximum financing sum, but all financing amount requested are subject to issuers’ credit risks and its proposed utilisation of the funds.

  • For Premium Financing, Cofundr will apply its proprietary Financial Ratio Analysis in assessing each Issuer which includes 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.

Yes, it is possible to repay the note early, however an early repayment penalty would be imposed. Please refer to the Schedule of Fees and Charges to find out more. It is also important to note that in order to make an early settlement, 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. To find out more on early settlement, please email us at customerservice@cofundr.com.my for more information.

If you desire to apply for multiple financing requests for your respective businesses (or companies) then you are required to create separate accounts for each business. This is because each business (or company) is an entity on its own and as such will require its own due diligence and credit risk assessment.

As long as the purpose of funding is not similar, you are still able to request for financing with Cofundr. However, approval for such financing will be on a case-by-case basis.

  • For Working Capital Financing, the funds raised will be transferred to your entity’s account via online bank transfer upon perfection of all documentation.

  • However, for Premium Financing, Cofundr will directly disburse the funds (upon perfection of documentation) to the insurance company on your behalf, thereafter a receipt will be issued by the insurer to you as proof of payment.

If the fundraising target is not met, the fundraising campaign would be cancelled, and in the case of Premium Financing, the unfunded portion of the premiums and any other monies (for e.g. Stamp Duty, Sales & Services Tax, etc.) paid to Cofundr will be refunded to the issuer.

  • For Premium Financing, all Insurance Policies financed will be automatically assigned to Crowd Sense Sdn Bhd (on behalf of the investors) as collateral for the financing request.

  • For Working Capital Financing, a corporate or directors’ guarantee is required when applying for the financing request. However, if additional collateral is provided, the Issuer may be able to appeal to more investors that may consider the investment.

  • For Premium Financing, upon making a financing request, an indicative offer would be immediately provided to you. If you choose to proceed and submit the documentation requested, we will be able to revert to you within 3 working days on the outcome of the financing request.

  • For Working Capital Financing, we will be able to revert to you within 3 working days on the status of your financing request upon receipt of the requested documents.

Repayments would be made via bank transfer directly to the Cofundr’s trust account. You are advised to upload the bank deposit slip on the platform as a proof of payment. Please refer to your copy of the Investment Note for payment details.

  • In the event you are late in your repayment, there will be a late interest charge of 18% p.a. applied on the outstanding amount after 3 days past the due date. This late interest charge will accrue and become due when you regularise your account. Cofundr will advise you on the late interest amount due via the platform.

  • In the event you default on your obligations, Cofundr may consider implementing a debt restructuring plan in order to aid you in fulfilling your repayment obligations (on a case-by-case basis). However, if you continue 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 (on a case-to-case basis). These considerations may include:

  • Payment reprieve up to 60 - 90 days, and/or

  • Extension of the Note tenure

No restructuring charges will be incurred by the Issuers for the implementation of the debt restructuring and rescheduling process. However, any out-of-pocket expenses (such as stamp duty, legal fees etc.) will be applicable and payable to Cofundr.

  • For Premium Financing, a Note is classified as defaulted if the Issuer has failed to repay the outstanding amount and any 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 the late interest charges accrued has been received from the Issuer after 3 calendar months from the repayment due date.

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.

If an Investor and/or issuer have any issues and/or complaints, they can lodge their complaints via Cofundr’s customer services at customerservice@cofundr.com.my.