Contract Financing
Secure the Funding to Deliver on Your Next Big Contract.
Winning a contract is a milestone. Having the resources to fulfil it matters just as much. Explore funding for eligible project costs and business commitments.
Designed around your business needs.
Explore a financing option that responds to the way your business operates, subject to eligibility and approval.
Fund project requirements
Explore financing for eligible project costs and contractual obligations.
Support business continuity
Manage operating commitments while allocating resources to projects.
Manage upfront costs
Help bridge the gap between initial delivery expenses and customer payments.
Pursue new opportunities
Explore financing for eligible projects that match your operational capacity.
HOW IT WORKS
A clear path from application to funding.
Each application is assessed before an approved financing opportunity proceeds to the investor-funding stage.
STEP 1
Share your contract
Submit the contract, project details and supporting business documents.
STEP 2
Application review
Your business, contract, repayment capacity and security are assessed.
STEP 3
Funding opportunity
Approved Investment Notes may be listed for investor participation.
STEP 4
Deliver the work
Funding is disbursed when the applicable conditions are met.
Is your business eligible?
Capsphere currently considers businesses with an established operating track record and eligible security, subject to assessment and applicable requirements.
The following entities are eligible:-
Public sector organizations (i.e., Federal, State, or Local Government) Government Linked Companies (“GLCs”) or its subsidiaries Multinational / Large public listed companies Large/established companies
Frequently Asked Questions
Contract financing is a form of long-term financing that enable businesses which have been awarded contracts to receive cash in advance prior to project completion.
This is how it works:
Capsphere will finance up to 80% of your contract value with financing limit up to RM500,000. The tenure of the facility is based on the contract tenure/milestone of not more than 3 years.
Applicants to provide the following:-
-
- Copy of company Director(s) NRIC
- Latest 2 years audited financial statements
- Latest management account
- Latest 6 months bank statement
- Details of existing borrowings
- Latest trade receivables aging report
- Latest trade payable aging report
Please note that Capsphere may require additional documents for application. Our representatives will inform you accordingly.
The applicable fees and charges are:
-
- Verification fee : RM 50
- Administrative fee: RM 40
- Documentation fee: RM 800
- Success fee : 3% to 6% of the funds raised (depending on the size and the tenure of the Investment Note).
- Transaction charges :
- FPX at RM 1 per transaction
- IBG at RM 0.10 per transfer
- Stamping fee:
- 0.5% of funding amount + RM350 for charge and charge removal & any other late/amendment charges by SSM
- Prepayment Fee (if any) : Up to 20% of total outstanding returns on Investment Note.
- Late Payment Fee (if any):
- Conventional
0.05% to 0.1% daily returns on principal outstanding on Investment Note. - Shariah
Ta`widh and Gharamah shall not exceed 10% of the outstanding amount or as may be determined by the SAC from time to time.
- Conventional
- Restructuring Fee (if any) : Administrative fee of 1% of outstanding Investment Note amount.
- Legal/Recovery Fees : Based on quotations given by providers.
- SST (if any): 8%
Note:
There is no need for you to manually pay for any fees since we will take the charges from the final amount that is successfully raised. There will be no charges for any listing that is unsuccessful. Issuers will be subjected to third party charges such as processing fees, legal charges, and taxes.
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