Table of Contents
CapBay Referral Code (RM100)
If you’re signing up and registering with CapBay, don’t forget to use my code and link for a free RM100. To qualify, you’ll have to make the RM10K deposit and select one of the Auto Invest profiles (Conservative, Moderate and Aggressive). The full terms and conditions can be found here.
Register hERE.
Use my code: DIVMAGIC
CapBay Portfolio Update
An important note: First started investing in May 2021.
September 2024
Unfortunately, we’ve been hit with a default this time around.
RM1,305.68 to be exact. Of that RM1.3K, CapBay has managed to recover RM552.94.
On a brighter note, returns are not too bad – we’re at 7% annualised return. In total, I put in RM10K, and I got RM2K back, invested since May 2021.
I’ll continue to leave my money in there and let it roll, 7% per annum is not too bad at all. If and when it goes to above 10+%, then I’ll seriously consider depositing more.
CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also, my code, for an additional RM100.
Register hERE.
Use my code: DIVMAGIC
If you’d like to read about my stock investments, my Freedom Fund can be found here.
July 2023
No defaults yet on my side and it’s amazing that the portfolio has been maintaining 11.1% for like.. forever. I’m going to check how this is calculated or if it is a bug..
As I only put in RM10,000 so far, since May 2021, this comes up to 17.95% returns in 2 years.
Nov 2022
Still happy with CapBay!
CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also my code above for an additional RM100.
I’ll be adding in a little more money the next time they have a promo.
June 2022
I’m pretty happy and satisfied with CapBay. With the markets in turmoil, CapBay is the one that outshines my other investments for the year at an 11% annual return. A little lower of course once you take into account the fees.
CapBay is also having a few promotions on and off recently so if you’re looking to start investing, make sure to capitalise on that. Also my code above for an additional RM100.
May 2022
Many of you have been asking for an update on my P2P lending portfolio on CapBay. The good news is that there are still zero defaults! And the even greater news is that the annual return is still above 10% right now.
I prolonged the update a little because this month marks the 1 year anniversary of my investment in CapBay. We put in RM10K back in May 2021. And now, we’ve got a net return of RM780.51. That is a 7.8% return. Not too shabby compared to the markets now.
In light of the decent returns and zero defaults, I’ll be placing another RM10K into CapBay. I wish I could spare a little more but I don’t want to spread myself too thin.
If you’re thinking of giving CapBay a try, register hERE.
Use my code: DIVMAGIC and get RM100 for freeee.
Read on for the step-by-step guide to register and how to choose your portfolios.
January 2022
I invested RM10,000 in CapBay back in May 2021. The first update (as below) was in September 2021 in which I got RM262.77 back, amounting to a 2.62% ROI in 5 months.
Fast forward to January 2022, from the same RM10K in investment, we’ve got a net return of RM525.15. That’s a 5.25% return in 8 months.
Not sure if we’ll be able to reach 10% in returns at the end of one year. But we’ll check back again in May 2022! Still pretty happy with the returns AND of course, no bloody defaults.
If you’re thinking of giving CapBay a try, register hERE.
Use my code: DIVMAGIC and get RM100 for freeee.
Read on for the step-by-step guide to register and how to choose your portfolios.
September 2021
I invested RM10,000 in CapBay back in May 2021. Here’s how the portfolio is doing almost 5 months after.
I’ve gotten back RM262.77 which was of course reinvested again. That comes up to about 2.62% ROI in 5 months. It does seem a little low right now but bear in mind that due to the nature of financing, it’ll take a few months for each note to mature. We’re looking at an average time period of 6 months per note. Below is an example of a note that took about 2 months to mature.
For now, I’m happy with the 2% return in 5 months. And I’ll probably keep the money in for 1 year or maybe 2 then re-evaluate CapBay’s performance.
The best part, however, is the zero defaults so far. That has always been a concern when investing in P2P lending. With no defaults in 5 months, I’ll be continuing with CapBay for the foreseeable future.
The P2P Lending Scene in Malaysia
I’ve been receiving inquiries on and off on what P2P platform I’m currently in. And if you’ve been reading the blog for a while, you’d know I had some money in Funding Societies. However, due to their increasing defaults, I’ve pulled out most of my capital.
Over the past few months, I’ve been looking to re-invest in the sector. I’m on the lookout for lower risks and default rates, somewhere my money can grow steadily at a reasonable rate of return. Which lead me to CapBay.
Types of Loans – Business Term vs Invoice Financing
During P2P’s infancy days, the loans offered by most platforms consisted of mainly business term loans. Which is, of course, the essence of P2P financing i.e. You lend money directly to businesses for a fixed period, typically between 12 to 36 months.
However, it is when the defaults came in that investors realized just how risky it was to hand out loans willy-nilly. And of course, the importance of really diversifying and not putting your capital into a few loans. Instead, when it comes to P2P financing, diversifying over many loans is advisable.
Fortunately for me, my returns today are still in the positive region. I’ve almost withdrawn 100% of my capital with a net return of 10+% per annum.
Right now, I’m looking to get back into the P2P scene as the industry as a whole matures. And I’m looking to lower my default risk by going for primarily Invoice Financing. There is lower risk here because investors are essentially lending money in the short term to SMEs based on a transaction.
In short, when an SME sells their services to a buyer on credit, they often must wait up to 6 months to get their payment. Invoice Financing allows these SMEs access to upfront payment. With Invoice Financing, the SME has already made the sale and the risk of default is actually transferred to the corporate buyer. Typically, Invoice Financing is for the short term, you’ll normally see a loan term of not more than 6 months.
Why CapBay?
CapBay specializes in providing Invoice Financing to SMEs who supply to blue-chip companies and government-related entities. Among the few P2P players in Malaysia, CapBay currently has had no defaults SO FAR since their launch in February 2020. This is no easy feat and caught my attention right away and got me digging for more info about them.
As reported by Fintech News Malaysia, CapBay is the fastest platform to hit RM100 million in P2P Financing. Typically, fast growth leads to problems with risk. The fact that they’ve managed to achieve this growth while still maintaining a 0% default rate is impressive.
How CapBay Works
CapBay works a little differently from the platforms I’ve used. They’re encouraging ”Auto-investing” whereby you let the platform pick the loans to invest in. As you all know, I’m a big fan of automating investments and so I will be using their Auto Invest feature all the way.
You choose from 3 different Auto Invest Profiles based on their respective risk profiles and potential return – Conservative, Moderate and Aggressive. If however, you want to have better control of your capital, you can choose to customize.
Within these 3 different profiles, you’ll find a further 3 categories of notes:
1. Select: Safer and lower return notes
2. Motor: Dealer financing notes
3. Diversified: Riskier and higher return notes
There’ll be a section for you to read up on these on the platform itself.
Another thing to note: Your uninvested funds will earn an estimated 1.7% per annum. This is a special feature called CapBay Plus that ensures you continue to generate returns on uninvested funds if you utilize their Auto Invest.
Simple Steps to Get Started
You’ll need RM10,000 to start
This one here got me thinking a little and I know RM10,000 is a huge amount to start with for many, myself included. But after looking at the 0% default rate for a year, as well as the expected net return of up to 10% per annum on their investment opportunities, I’ve decided to go ahead. I’ll be posting updates on the performance here, probably on a regular basis.
Registration
Registration took me about 5 minutes. All the usual KYC are required. I.e. pics of your IC and a 5-sec video upload.
If you don’t have a webcam, make sure you download the app and register there as you’ll need to upload a video during registration as part of their KYC requirements.
CapBay Referral Code
And finally, if you’re signing up and registering with CapBay, don’t forget to use my code and link for a free RM100. To qualify, you’ll have to make the RM10K deposit and select one of the Auto Invest profiles (Conservative, Moderate and Aggressive). The full terms and conditions can be found here.
Register hERE.
Use my code: DIVMAGIC
End.
My Portfolio
I’ve added in RM10,000 to the Auto-Invest feature and selected the Aggressive profile.
The Auto-Invest feature was quick and my funds are 40% invested in a few days. Returns range from 7.3% to 9.7% currently.
Look forward to future updates to my P2P portfolio.
Risks of P2P
Please understand that I consider P2P investing a high-risk venture. Even with CapBay’s focus on Invoice Financing, I still consider this to be a risky investment. But how else can you expect a potential net yield of up to 10% per annum.
This is why I’ve been doing a lot of research and looking around the Malaysian market. I’ll be testing the waters with CapBay and will let everyone know how it goes via my updates.