Kapital Boost Overview

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Brief information: Kapital Boost is a Singapore-based crowdfunding platform that connects small and medium-sized enterprises (SMEs) with investors who are looking to fund their projects or businesses. The platform aims to provide an alternative financing solution to SMEs who may face difficulties obtaining funding through traditional means such as bank loans.

Through Kapital Boost, SMEs can pitch their projects and business plans to a pool of investors, who can then choose to fund the projects that align with their investment criteria. In return for their investment, investors receive a share of the profits generated by the funded projects.

Features:

• Short term tenor of  1-6 months
• Average annualised return: 17%

What are you investing in: Kapital Boost offers two peer-to-peer investment options, asset purchasing and invoice financing:

• Asset Purchasing: Also known as Murabaha or cost-plus financing, investors pool funds to purchase assets (such as inventories and raw materials) which they will then sell to the SME at a markup. The SME then pays investors the cost-plus markup amount at an agreed future date. To ensure availability of cash flow on payment date, the SME is required to have an existing purchase order from customers.
• Invoice Financing: Backed by an invoice that is awaiting payment from customer, investors pool funds to offer a cash advance (based on qard structure) on the unpaid invoice. At the same time, investors are appointed as agent to collect on the invoice (based on wakalah structure).

Kapital Boost’s platform is designed to be user-friendly and accessible, with a focus on transparency and accountability. The platform provides a range of tools and resources to help SMEs prepare their pitches and manage their funding campaigns, while also providing investors with the information and data they need to make informed investment decisions.

Overall, Kapital Boost aims to create a mutually beneficial ecosystem that supports SMEs in their growth and expansion plans while providing investors with attractive investment opportunities.

Is it regulated? Kapital Boost is currently unregulated.