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FAQs +

For SMEs


Through crowdfunding, financiers offer capital to small businesses for the purchase of assets. This is a cost-plus profit arrangement (also known as Murabaha in Islamic Finance), wherein financiers buy assets for businesses at market value and immediately sell the asset to the business at a marked-up price on a deferred payment basis (see infographics on How it works). The typical funding period is 3-12 months depending on the SMEs cash flow strength and timing of receivable payments on existing orders.

To be eligible for funding from Kapital Boost, a business will need to fulfill the following requirements:
  • At least one year of operation;
  • Revenue of at least SGD100,000 in the past financial year;
  • Positive free cash flow in the past year; and
  • Preferably with receivables from existing orders or sales contracts with fixed payment terms.
If you do not meet these requirements, please contact us to discuss how we can help you.

Click on 'Contact us' and provide us with information on your business and asset purchase needs. A Kapital Boost representative will contact you to request for additional information including company registration details, historical financial statements or bank records, and business plan or company presentation.

Between two to five weeks. This assumes five working days for Kapital Boost to conduct due diligence on the SME and a maximum of four weeks for the crowdfunding campaign.

Most deferred payments will be amortising on a monthly basis to reduce repayment risk for financiers. For businesses that prefer a bullet payment at the end of the contract period, the profit margin on the asset purchase is likely to be higher to account for the increased risk premium.

Compared with most non-bank money lenders, we provide lower funding costs. Versus banks, we offer a higher approval rate, less administrative paperwork, and less restrictive covenants. Additionally, Kapital Boost's funding adheres to Shariah principles, which are ethical. The use of an asset purchase/cost-plus profit structure versus a loan increases the sharing of risk and reward between businesses and financiers.

A successful campaign will be charged an administrative fee of 5% of the total funding amount. A failed funding campaign will be charged a fixed fee of $50 to cover our administrative costs. The profit margin on asset sales will be determined by Kapital Boost with the business owner's consent, and will depend on the repayment period and risk profile of the business.

No. Kapital Boost encourages an accelerated payout (asset purchase) by businesses.

Yes and no. There is no collateral involved in this financing structure. However, assets purchased businesses will belong to the financiers until after they are fully paid for.

Yes, although at this time only to Indonesia and Malaysia. We intend to expand our services to other ASEAN countries over the medium term.

For Financiers (Members)


At Kapital Boost, our investment opportunities are guided by moral and ethical values. For instance, we do not support activities involved in gambling, weapons or those causing environmental harm.

Additionally, our financing arrangement ensures that the funding is for productive rather than consumptive purposes. The former creates far more positive impact, in terms of production and growth in real economic activities that is beneficial for the society.

Several steps are taken to reduce the risk to financiers. First, Kapital Boost screens for businesses with stronger credit profile to provide funding to. Second, Kapital Boost prioritizes funding of businesses with existing sales receivables, of which the proceeds can be used to purchase contracted assets from financiers. And third, we believe the asset purchase funding model lowers the overall risk to financiers. The financing structure prevents businesses from using the funding for unintended purposes (e.g. for owner's personal use). The initial ownership of the assets by the financiers also offer some form of collateral for the funding.

Businesses must meet the following requirements:
  • At least one year of operation
  • At least SGD100,000 of sales in the past year
  • Positive free cash flow in the past year
Additionally, we have a credit risk scoring system based on the company's business profile, financial position, and corporate governance. On a risk scoring scale of 1 (lowest) to 10 (highest), we only allow businesses with a risk scale of below 3 to raise a crowdfunding campaign through Kapital Boost. We have also partnered with UK startup Friendly Score (www. friendlyscore.com) to determine the credit-worthiness of the business owner based on his/her social media activities.

The three core areas we focus on are the company's business profile, financial position, and corporate governance.

1. Business risk:
  • Industry profile (e.g. industry competitive landscape, profitability, life cycle/growth potential, economic sensitivity, and regulatory risk)
  • Company profile (e.g. size “ in terms of annual sales, historical profit, operating track record, differentiation)
  • Management (e.g. experience, risk profile, risk mitigation)

2. Financial risk:
  • Cash flow (operating cash flow/interest, historical free cash flow)
  • Operating performance (net income margin, sales/net profit growth)
  • Capital structure (Total debt/EBITDA, total debt/assets)
  • Liquidity (current ratio)

3. Corporate governance risk:
  • Credit score of largest shareholder
  • Clarity of company strategy
  • Availability of a business plan
  • Availability of historical financial statements“ audited or not

We give a score of 1 to 10 for each of these factors (1 being the least risky; 10 being the most risky). Based on weighted average score, we get a final credit risk score. Only businesses with a score of below 3 will be eligible to apply for financing through Kapital Boost.

No. While we utilize the Kapital Boost credit score to pre-screen all businesses and select the best for inclusion in our platform, we are not responsible for formal due diligence on the funding investments. The need and onus to do due diligence lies squarely with the financiers as we do not profess to advise on the same. All dealings and transactions are directly with businesses and financiers.

In the event of a default, Kapital Boost will immediately engage with the business to find out the reason for the missed payment. We will attempt to find a solution which will satisfy the financiers and the business. If after eight weeks there is a failure to come to an agreement between the financiers and the business, and there is a continued default, the financiers may take legal actions to either force the payment of asset purchase by the business or to take back the assets. Note that Kapital Boost as a broker, will not be involved in the legal matters between the financier and the business.

All contracts/agreements will be sent electronically to to the investors. Signing will also be done electronically using Echosign. Once signed, the contract will be binding under Singapore Law.


Any project which supports less-privileged communities in Southeast Asia. This may include, but not limited to, the building/renovation of schools or mosques and funding for the development of infrastructures in lower-income communities.

Please email hello@kapitalboost.com and provide us with details of the social project that is in need of funding. Our team will review the project and determine the funding eligibility. It will be up to Kapital Boost's discretion on which projects will be featured.

We do not. We offer donation crowdfunding services as a Corporate Social Responsibility.

We encourage our members to donate generously. Therefore they can contribute more than the target funding indicated, provided that the campaign is still open.

Yes, only members are allowed to participate in our campaigns, be it for donation or investing in SMEs.

Yes, donors will be given periodic updates, via email, on how far the project has progressed. Donors can be assured that the money will be spent according to the intended use as described in the campaign.


Private crowdfunding campaigns require a password to access. This can be obtained directly from the SME owners or upon request to the Kapital Boost team.

Kapital Boost can help the business draft a detailed and investor-friendly crowdfunding campaign, which can raise the likelihood of a successful fund raising. Additionally, Kapital Boost can assist with the fund transfer and preparation of legal funding agreements between parties. This enhances the professionalism of the deal and increases trusts.

Any business that do not go against the Islamic principles.

We charge an administrative fee of 3% of the total funding raised.

A campaign usually runs for 30 days. If not fully invested in or target funding not met, the campaign period can be extended up to 15 days.

Through crowdfunding, financiers offer capital to small businesses for the purchase of assets. This is a cost-plus profit arrangement (also known as Murabaha in Islamic Finance), wherein financiers buy assets for businesses at market value and immediately sell the asset to the business at a marked-up price on a deferred payment basis (see infographics on How it works). The typical funding period is 3-12 months depending on the SMEs cash flow strength and timing of receivable payments on existing orders.

Click on 'Contact us' and provide us with information on your business and asset purchase needs. A Kapital Boost representative will contact you to request for additional information including company registration details, historical financial statements or bank records, and business plan or company presentation.

Between two to five weeks. This assumes five working days for Kapital Boost to conduct due diligence on the SME and a maximum of four weeks for the crowdfunding campaign.

Most deferred payments will be amortising on a monthly basis to reduce repayment risk for financiers. For businesses that prefer a bullet payment at the end of the contract period, the profit margin on the asset purchase is likely to be higher to account for the increased risk premium.

Compared with most non-bank money lenders, we provide lower funding costs. Versus banks, we offer a higher approval rate, less administrative paperwork, and less restrictive covenants. Additionally, Kapital Boost's funding adheres to Shariah principles, which are ethical. The use of an asset purchase/cost-plus profit structure versus a loan increases the sharing of risk and reward between businesses and financiers.

No. Kapital Boost encourages an accelerated payout (asset purchase) by businesses.

Yes and no. There is no collateral involved in this financing structure. However, assets purchased businesses will belong to the financiers until after they are fully paid for.

Yes, although at this time only to Indonesia and Malaysia. We intend to expand our services to other ASEAN countries over the medium term.

e-Wallet


Xfers is a payment processing gateway that simplifies online bank transfers. It is currently compatible with all major retail banks* in Singapore and compliant with Singapore's FAST (Fast and Secure Transfers) protocol.

*ANZ, POSB, Deutsche Bank, CIMB Bank, DBS, HSBC, Far Eastern Intl Bank, Citibank, Maybank, OCBC, RHB, UOB, RBS, SMBC and Standard Chartered.

Only those with internet-banking enabled Singapore bank accounts can use Xfers as a payment method to make the fund transfer.

Xfers uses a Amazon Web Services' (AWS) data servers to store your information. Additionally Xfers do not reveal or share your information to third parties unless required by law to do so. For more information on Xfers' Privacy Policy, please click here.

Xfers payment service is regarded as a stored value facility under the Singapore law. Although not required to obtain the approval of Monetary Authority of Singapore (MAS), its operations and business activities are in compliance with MAS' regulation, specifically the PSOA-NO2 on Prevention of Money Laundering and Countering the Financing of Terrorism.

You will first need to top-up your Xfers e-wallet by depositing funds into an Xfers designated bank account. Once the top-up is successful, you can make payment for the SME / Donation campaign. The Xfers payment process is fully integrated and can be completed on Kapital Boost website. To start, click on the campaign name on the Portfolio page on your dashboard and follow the instructions for top-up and payments accordingly.


If done correctly, your e-wallet should be updated with the new account balance within 5-10 minutes. However, if the Xfers services or the banking network is under maintenance, it may take up to 3 hours.

If your account balance is still not updated within 3 hours, you should do the following: (1) Take a screenshot of the bank transfer that you have done. For ATM transfers, you will need to take a photo of the transfer receipt. (2) Fill up and submit the following form: https://www.xfers.io/support/transactions. It may take up to 1 business day for the funds to be credited into your Xfers account.

There are no costs to the Investor for using Xfers.

You may contact Xfers support at support@xfers.io

If you already have an Xfers account, here’s how to withdraw funds: (1) Log in to your Xfers account at www.xfers.com. (2) On the left panel, go to "Withdraw from Wallet". (3) Add a Singapore bank account. (4) Make a withdrawal request. If you do not currently have an Xfers account, here’s how to withdraw funds: (1) Go to www.xfers.com. (2) Sign up for an account using your phone number (ensure this is the same phone number that is registered with Kapital Boost). (3) Log in to your Xfers account. (4) On the left panel, go to "Withdraw from Wallet". (5) Add a Singapore bank account. (6) Make a withdrawal request. If you experience problems with your withdrawal process, you may send an email to support@xfers.io. In all cases of withdrawal, do take note to enter your bank account details correctly. For withdrawals that have been reversed by Xfers' bank as a result of you having entered an erroneous bank account number, we will charge an administrative fee of $25.

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