We are an online marketplace using state of the art technology to allow investors to purchase short term invoices in Singapore. These invoices are from local businesses who sell the invoice at a discount to their face value. Investors realise a return when the invoice is paid by the debtor.
Capital Springboard (S) Pte Ltd is a Singapore registered company with registration number 201603875N. Capital Springboard Limited is an Irish registered company with company registration number 565930.
Capital Springboard Limited does not carry out any of the “regulated activities” as set out in Part I of the Second Schedule to the Securities and Futures Act (Cap. 289) and is therefore not required to be licensed or registered with the Monetary Authority of Singapore (“MAS”).
The activities contemplated to be carried out over the CS Platform do not involve the provision of a loan and therefore does not contravene the Moneylenders Act (Cap. 188). Further, the sale and purchase of Debts over CS platform only cater for corporate invoice sellers.
Further, CS does not take any deposits for the purposes of the Banking Act (Cap 19.). All members’ monies are held in a regulated escrow agent’s bank account pending disbursement and is not co-mingled with CS’ monies.
P2P or peer-to-peer investing involves the use of a platform to match investors with individual investment opportunities. For Capital Springboard these opportunities are short term invoices issued to large corporates.
Watch this short video to learn more about P2P investing
We work directly and through a network of brokers to identify solid small and medium sized businesses with working capital requirements. Our trade finance experts ensure that these invoices meet our key criteria. Most invoices traded on our platform are to large corporates. Some guidelines are:
Large corporates, well capitalised companies and Government owned/sponsored entities.
Debtors with annual gross revenue in excess of S$70m are more likely to be accepted than smaller debtors.
Companies with good history of paying on time (against comparable industry) are more likely to be accepted. Companies with strong balance sheet and low debt to equity ratio are stronger candidates.
Companies that are highly profitable, net of liabilities and debt servicing are more likely to be accepted.
Companies based in Singapore or other OECD countries are more likely to be accepted.
We evaluate not only the credit worthiness and the financial strength of the debtor but also that of the seller since if there is a performance issue between the seller and the debtor and the debtor does not settle the invoice within 30 days after the expected due date, the seller needs to be in a financial position to repurchase the invoice. Aside from evaluating quantitative metrics, we also look at more qualitative elements such as the history of the relationship between seller and debtor, the types of industry that the seller and debtor are in, the duration of the invoice, amongst others. All elements are put through a scoring system which generates the grade for the invoice.
Credit reports from Dun & Bradstreet and DP Information form part of the input in our credit grading and risk analysis. Depending on the strength of the seller, extra security may be required to reach an agreement.
Singapore has been a key global business and financial hub and one of the most developed countries in Asia. It is also well recognised as one of the world’s freest, most competitive and business friendly economies, and is currently ranked first in the World Bank’s Ease of Doing Business Index and second in the World Economic Forum’s Global Competitiveness Index. Major strengths in Singapore include a stable government and political system, effective laws and regulations, advanced infrastructure and favorable tax regime. SME Business represents close to 50% of the Singapore economy and GDP. 99% of companies are SME’s. Singapore government is focused on supporting growth and innovation from SME’s.
Singapore is ranked 14th globally by factoring volume according to Factor Chain International with year-on-year growth of 280% in 2014.
Coface, the world’s second largest Trade Credit insurance company has also accorded the best rating to Singapore for risk of businesses defaulting in their Q1 2016 country assessment.
Investments on the Capital Springboard platform are only available to an "accredited investor" as defined in Section 4A(1)(a) of the Securities and Futures Act (Cap. 289)("SFA"), or an "institutional investor" as defined in Section 4A(1)(c) of the SFA. For the avoidance of doubt, such products and services are not available to retail investors.
The sign-up process is made up of the following steps:
Once all the required documents have been received, completing the sign up process typically takes between two and five business days. You can read more about investing on Capital Springboard on our Investors page.
The minimum investment amount is: S$50,000.
The minimum amount is 500 SGD. When purchasing via our AutoInvest function, the minimum may be lower.
All investor funds are held securely with our independent escrow agent, Vistra Trust (Singapore) Pte Limited ("Vistra"), which is regulated by the Monetary Authority of Singapore (MAS), in an independent escrow account managed by Vistra. You may withdraw any unused cash at any point. You must leave a minimum of S$10,000 in your account value at any time. Any deployed cash may only be withdrawn once the invoice is paid.
SME’s who do businesses with well-established customers may choose to sell their invoices at a discount through Capital Springboard instead of waiting for their customers to pay. The discount earned less a performance fee charged by Capital Springboard provides investors with their returns.
Investor’s net expected return is a function of the distribution of the risk grades across the portfolio, the cash utilisation rate and the default rate. The expected net annualised return on the purchase of invoices ranges from 11% to 25%. Positive returns are not guaranteed. Investors may lose some or all of their capital.
APR stands for Annual Percentage Rate. It represents the annual rate earned through an investment. The realised APR is calculated based on actual discount received, net of the platform performance fees when an invoice is settled, divided by the original amount advanced on that invoice. The realised APR on a portfolio basis is calculated based on the weighted average of the actual discount received, net of platform performance fees, over the sum of the amount advanced.
The realised APR is calculated based on the actual discount earned on invoices paid. It does not take into consideration expected gains from invoices not yet due. The portfolio projected return provides investors with an indication of what their portfolios may return taking into consideration potential write-downs and write-offs. The portfolio’s projected return does not take into account any unused cash in the portfolio.
We have been in the invoice financing market since 2014 and our default rate to-date is less than 0.15%. The Fintech industry is still young and many platforms have not been in operation long enough for their selection process to be rigorously tested. However, based on platforms in the US with longer operating history, the reasonable expectation of default rate over the long term is between 3% and 5% with the higher credit rating resulting in a lower default rate than those with lower credit rating.
Fractionalisation is the purchase of a fraction of an invoice. It allows investors to be able to quickly construct a well-diversified portfolio of invoices without the need for huge capital outlay. This ensures that there is a higher probability that investors will achieve their expected return and the impact on return of any particular invoice going into default is greatly reduced. For more information on diversification, please visit our Investors page.
Investors receive their gains and principal back when an invoice is settled by the debtor. The amount will be credited into Vistra’s escrow account.
Capital Springboard charges a performance fee of 25% of the investor’s realised gain. The fee is charged on a per invoice basis as soon as the invoice is paid. There are no sign-on fees or on-going service fees. Investors only pay the performance fee on the gains they earned.
All fees are calculated daily, so even if an invoice is paid late, the fees to investors are adjusted accordingly. Please note that investors are compensated for a minimum of 30 days.
Yes. Our AutoInvest feature is available to all investors. It allows investors to select diversification and risk grade criteria for invoices that they would like to automatically purchase. You can enable AutoInvest from your Investor dashboard as soon as your account is open.
The payment status of each invoice is updated on the investor dashboard.
Debtors will often pay late and in the majority of cases, this is due to their cash management policy. We work closely with sellers to understand the debtor’s payment pattern and establish the Expected Due Date versus the invoice due date. If an invoice is not paid on the Expected Due Date, we grant a “grace period” of 14 days, during which point, we work with the seller to understand the issues behind the delayed payment. If the seller cannot pay immediately, we may negotiate with them a repayment plan for the invoice. If this is not possible then we may work with third-party collection firms to assist with collections and also demand that the seller repurchase the invoice from the platform.
Our collections efforts always seek to maximize recoveries for investors. For certain delinquent loans, Capital Springboard will leverage third-party collection firms to assist with collections and litigation efforts.
When we receive notice of a bankruptcy filing the loan status is updated to “In Default” until the bankruptcy proceedings are completed. Capital Springboard will continue to pursue any and all legal actions available to continue collection efforts.
Investors may withdraw any undeployed funds in their CS account down to an account value of S$10,000 minimum. The account always needs a minimum of S$10,000 total in it to remain open. Only funds being held in the CS account can be withdrawn. By default, funds will be remitted back to the bank account from which it originated. The investor may request funds to be remitted to another account under his/her name. Additional due diligence to ascertain the identity of the account holder will be required, including a certified copy of the bank statement of the bank account for the remittance to be made to. The request for change in bank accounts for any remittance should be emailed to [email protected]. Other than under extenuating circumstances, CS does not remit funds to third parties.
To withdraw, go to my account/transfer funds. Click on Make a Transfer. Complete the form and click request Transfer. Your request will be processed within 1 business day. Note that the bank transfer may take an additional few days to reach your bank account.
If Capital Springboard were to go out of business, no new invoices will be available. We have comprehensive agreements in place for our back-up servicer, Datapool (S) Pte Ltd. , to step in and continue to collect payments on outstanding invoices and distribute these to investors.
We welcome all small and medium sized companies onto our platform.
To see if you are eligible, check if you meet the criteria below:
All businesses applying to Capital Springboard need to pass our on-boarding process.
The discount rate paid by sellers is a function of the quality of the invoice debtor, the term of the invoice, the strength of both the debtor and the seller’s credit profiles.
We believe in transparency. Capital Springboard only charges you if your invoice is sold on our platform. Our fee structure is simple; we charge a 2% fee on the first installment, plus monthly discount rate. The monthly discount rate will be determined during our underwriting process. There are no other fees, meaning your application and consultation with our dedicated invoice sales team is absolutely free.
We have a cost calculator on our Seller page that should give you a good idea of the fees involved. Feel free to call us and we can talk you through the fee structure.
Yes. Discount rates are based on a minimum 30-day term.
We charge 8% p.a. on late payments (after the grace period) which is deducted from the sale price of the invoice and passed on to our investors net of our performance fee.
All investors on the platform have gone through our rigorous on-boarding process. They must sign up to strict confidentiality agreements for the information they are able to access on individual businesses and invoices. They are only able to use such information to decide whether to buy an invoice and are forbidden to share this information with any 3rd party.
We will not contact any 3rd party during our on-boarding process. Your application will not affect your credit rating.
After your application, we may need to contact your bank or your customer, but never without your consent.
Unlike factoring, you only sell the invoices you want to sell and there are no covenants, assuming certain criteria are met.
Unlike factoring houses, we do not charge any on-going service fees. By putting your invoice on our platform, you have access to a wide range of investors with different risk appetites.
With factoring companies, the on-going costs can be high and you may not be in the driver seat when it comes to your relationship with your end client (the debtor).
With Capital Springboard, you only sell the invoices you want to sell. Due to investor diversification and market based pricing, there is a higher certainty of invoices being funded as there are multiple sources of funding all found in one centralised platform.
During on-boarding with Capital Springboard, our team will assist you in identifying invoices that are likely to attract buyers versus those that aren’t.
Your client needs to sign up with Capital Springboard first. Then they need to go through our on-boarding process. Once their account has been opened, they can then appoint you to be the manager of their account.
Money manager will be remunerated based on a percentage of the realised gains made by their clients. The rate will be dependent on the number of clients you have on the platform and the amount invested. Please contact us for more information.
If you forgot your password you can reset your password via email. Go to https://app.capitalspringboard.com and click Forgot Password. Enter the email address associated with your Capital Springboard account and click Next. Within 15 minutes you will receive a link with instructions on resetting your password.
The most common reason for non-delivery of e-mail summaries is because a spam or content filter has blocked the e-mails. When e-mails are stopped by a spam filter, there is usually no notice sent to the recipient. Check your spam folder for emails coming from [email protected] and unblock them. You may also check with your IT department or email service provider to see if spam filters are blocking your e-mails.
If your company has implemented a spam filter, ask your IT department to allow all e-mails coming from [email protected] to be delivered.
Once logged on to https://app.capitalspringboard.com click on your name on the top right hand corner of the site and then click on My Profile. Change the email in the Notification Email textbox and click on the Save Changes button.
The security of your data is our highest priority. Capital Springboard implements bank-grade security to ensure your personal data is safe. Web APIs and web pages are secured with SSL certificates that support encryption algorithms with key lengths up to 256 bits and prohibit any key lengths shorter than 128 bits.
Yes, but you will need to use two separate email addresses in order to do so.