Capital Match Crowdfunding Platform - Review for Investors
Capital Match Crowdfunding Platform - Review for Investors
ValueChampion Rating 
Pros
- Investors seeking a crowdfunding platform for investing in short-term business loans or invoice financing to Singaporean SMEs
Cons
- Investors seeking equity or long-term investments
- Investors seeking to avoid high fees
- Individuals with less than S$1,000 to invest
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
- Investment Opportunities at Capital Match
- Investor Eligibility Requirements
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.
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.
Also, Capital Match requires a higher minimum investment (S$1,000) than many other P2P/Crowdfunding platforms, which limits the accessibility of the platform.
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 Loans | Invoice Financing | |
|---|---|---|
| Annualized Returns (net of fees) | 15 - 25% | 15 - 25% |
| Investor Service Fee | 20% of interest earned | 20% of interest earned |
| Minimum Investment | S$1,000 | S$1,000 |
| Tenure | 3 - 12 months | 3 - 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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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.