KUALA LUMPUR, July 1 — Malaysian peer-to-peer financing platform Capsphere has announced its Shariah-compliant financing solutions for small and medium enterprises (SMEs).
The solutions by the Securities Commission-registered platform are based on commodity Murabahah via Tawarrug arrangements.
The firm said in a statement that Malaysia is the cornerstone that continues to champion Islamic financing, hence the opportunity to develop Shariah-financing has captivated other developing industries.
Capsphere founder chief executive officer Yoon Jun Jie said he foresees continuous growth in the segment in which Capsphere can potentially play a role in.
Malaysia is a market leader in Islamic finance based on the Global Islamic Economy Indicator, while the Global Islamic Fintech index reveals that the demand for Shariah investment products will continue to rise.
"Capsphere’s latest offering, Shariah compliant financing solutions, will present more opportunities to all investors to partake in Shariah and Non-Shariah Investment.”
Introducing Asset-Based Shariah Financing
Capsphere is an asset-based financing platform that helps SMEs obtain funding by matching them with a pool of keen investors.
Understanding the complexities and sanctity of Islamic financing, Capsphere is working closely with Shariah advisory service provider Masryef Advisory Sdn Bhd, when it comes to matters in accordance to Islamic governance.
The firm’s principal Khairil Anuar Mohd Noor said they are proud to play a role and be part of Capshere’s Islamic finance journey.
"We also believe that Capshere’s Islamic finance platform would give micro, small and medium size business enterprises access to an alternative mode of financing that is not only fast and affordable, but also aligned with their business needs.
"In addition, the platform enables the Islamic investors to directly participate in the risk and reward of the business without having to be actively involved in the day to day running of the business.”
To mitigate risks, the platform offers assurance to investors through collateralising valuable assets as security for each financing, while bringing asset-based financing into effect.
Asset-Based Shariah financing is a type of financing that is provided using the Shariah contract of Commodity Murabahah (via Tawarruq arrangement), where SMEs offer an Islamic investment note that is collateralised by an asset.
It allows SMEs to enjoy competitive rates, along with RM1 million worth of financing options as well as up to three-year tenures for more flexibility.