Capital Match Crowdfunding Platform - Review for Investors

Capital Match Crowdfunding Platform - Review for Investors

Decent platform, offering short-term business loans and invoice financing, limited by high fees

Good for

  • Investors seeking a crowdfunding platform for investing in short-term business loans or invoice financing to Singaporean SMEs

Bad for

  • Investors seeking equity or long-term investments
  • Investors seeking to avoid high fees
  • Individuals with less than S$1,000 to invest

Editor's Rating

4.0/5.0

Capital Match is a standard P2P Crowdfunding platform in Singapore. For example, its return profile and investment requirements are quite similar to other platforms that have developed in the country. However, Capital Match is not among the best P2P/Crowdfunding platforms for Singaporean investors due to its high investor fee (20% of interest earned). That being said, the platform's track record indicates that it offers investors many opportunities to invest in loans to Singapore SMEs with estimated returns similar to competitors.

Summary of Capital Match Investment Platform
High investor service fee: 20% on interest earned
High minimum investment: S$1,000
Total amount funded: S$69 million

Table of Contents

What Makes Capital Match Stand Out to Investors

Overall, Capital Match is best categorized as an average crowdfunding investment platform. For instance, the platform's typical returns (15 - 25% after fees) is competitive with other Singaporean P2P/crowdfunding platforms. Additionally, the platform has lent a total of S$69 million, which is a similar total to other competing platforms in Singapore.

Bar graph showing total loans funded, as of february 2017, capital Match has lend SGD69.4 million, which is the median of the lenders presented

However, there are several drawbacks to the Capital Match platform compared to its competitors. First, it charges 20% on interest earned, which is higher than most investor service fees. For investments that offer good returns, this fee becomes very costly to investors. For example, for return rates above 12%, MoolahSense fees are cheaper for 6 and 12 month loans. Further, Funding Societies, which charges 18% on interest earned always charges less in fees.

Graph showing Investor service fees as a percentage of initial investment, assuming annualized returns of 20%. Over 6 months and 12 months, Capital Match has the highest fee ratio

Also, Capital Match requires a higher minimum investment (S$1,000) than many other P2P/Crowdfunding platforms, which limits the accessibility of the platform.

Graph showing the Minimum investment per financing campaign requirement of five major P2P platforms in Singapore. Capital Match charges S$1,000, much more than Funding Societies and MoolahSense, S$100 each, and Kapital Boost (S$500).

Investment Opportunities at Capital Match

Capital Match offers invoice financing and unsecured, short-term SME loans. Invoice financing allows businesses to receive funding based on invoices from their completed work. Because the businesses have a reasonable expectation to be repaid, these are generally less risky investments and therefore offer slightly lower returns than business loans. In general, invoice financing investments may be more attractive to risk averse investors.

Unsecured business loans, which are not backed by the borrower's assets, are viewed as riskier than secured loans, because the business does not provide assets to be sold in case of default. Since they are riskier, these loans tend to yield higher returns. Individuals seeking a slightly higher risk/reward profile might consider unsecured business loans.

SME LoansInvoice Financing
Annualized Returns (net of fees)15 - 25%15 - 25%
Investor Service Fee20% of interest earned20% of interest earned
Minimum InvestmentS$1,000S$1,000
Tenure3 - 12 months3 - 12 months

Investor Eligibility Requirements

Capital Match doesn't provide too many details about investor eligibility, however, to register as an investor individuals must visit the Capital Match website. Both Singaporean individuals and businesses are eligible to invest using Capital Match. Additionally, investors must have a bank account with a Singapore-registered bank.

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