What we offer
Kapital Boost is all about growing communities. Whether it’s helping small businesses grow big or protecting the social welfare of less-priviledged communities, our Singapore-based hybrid crowdfunding platform allows our members to invest or donate in a way that is ethical and Shariah-focused.
SMEs are often disadvantaged in their access to funds for business expansion. Kapital Boost addresses this problem by offering small businesses short-term financing alternatives with fast and friendly approval process and at competitive rates. Via a Murabaha (cost plus profit) structure can raise financing for working capital needs. They may also finance projects through a Mudharabah (profit sharing) structure.
Kapital boost gives our members the opportunity to invest and earn high returns through temporary financing of small businesses. These investments are ethical and have quick turnaround of 90 to 360 days. We focus on risk reduction and employ a robust Due Diligence & Screening Process – analysing operating and credit history, past cash flow, corporate governance, counterparty risk, and assess social media mileage – to determine the best funding opportunities for our members.
Investing is not only for financial returns. Kapital Boost offers members the opportunity to invest for the Akhirah (hereafter). Our Donation crowdfunding platform allows members to support non-profit, social-based projects in less-priviledged communities within the region. While financial returns is not expected, the reward for helping those in need will be multifold in the hereafter. Improving the social welfare is also a means of accelerating community growth in future.
So we invite our members to spread goodness, fund growth to those in need, and invest for the future.
How it works
Murabaha (cost-plus) Crowdfunding
Kapital Boost offers funding to small businesses through a Murabaha or “cost-plus” arrangement. The payment and asset purchasing flow between Kapital Boost, the small business, and the seller/supplier are shown and explained below.
- After a Kapital Boost member (financier) commits to investing in a crowdfunding campaign, a ‘Murabaha Master Agreement’ is signed between the financier and the small business. The financier agrees to purchase assets to be used by the business, with the condition that the business will purchase the same assets from the financier at costs plus a profit margin at an agreed time in future.
- The business is appointed as an agent to purchase assets on the financier’s behalf – this is called an ‘Agency Agreement’.
- The financier transfers funds to the business for the agreed asset purchase. The business purchases the assets on the financier’s behalf and takes possession of them.
- A ‘Murabaha Sales and Purchase Agreement’ is signed to officially transfer the ownership of the assets to the business. The Agreement also provides the payment schedule (usually on deferred terms, and at ‘cost plus margin’) to the financier.
- With the full payment by the business, the Murabaha agreement is finalised and terminated.
Mudharaba (profit sharing) crowdfunding
We offer a Mudharaba crowdfunding for businesses or projects which are not able to raise financing using a Murabaha structure. The key requirement for Mudharaba is that a profit sharing ratio for a financing project is determined between Kapital Boost, investors and the small business prior to launching a crowdfunding campaign. Based on financial projections on the project, investors can estimate the return it can expect to get at the end of the investment period.
This funding structure is more suited for projects which has clarity on the expected revenue and costs. To reduce credit risks for investors, Kapital Boost also prefer businesses with existing purchase orders, which require funding, or businesses having financial support from a strong parent.
- After a Kapital Boost member (financier) commits to investing in a crowdfunding campaign, a Mudharaba agreement is signed between the financier and the small business. The agreement clearly states the role of the small business as an expert in the investment of capital and the role of the financier as the provider of capital. Based on their roles, a profit sharing ratio for the project is determined between the two parties.
- Following project completion, the earnings are calculated. The investment principal is returned to financiers and whatever profits are earned from the project are divided between the financier and small business based on the agreed profit ratio.
- A loss arising from the project will be borne by the financiers, except in the case of ‘negligence of duty’ by the small business.
How To Invest (For Kapital Boost Members)
Browse Funding Campaigns
Browse SME funding campaigns across different sectors and countries
Invest from as low as SGD500 on short- term, legally-structured funding opportunities with attractive returns
Conduct Due Diligence & Analysis
Conduct your own due diligence using the in-depth information provided
Have questions? Contact us at firstname.lastname@example.org or get in touch with business owners directly
Fund SMEs, Earn Attractive Returns
Determine the amount you want to invest
Earn annualised return on investments of 15-24%
Support community growth by funding SMEs
How To Raise Funds (For Small Businesses)
Meet The Requirements
At least one year of operation
Minimum annual sales revenue of SGD100,000
Historical positive free cash flow
Have purchase order or work order that requires funding
Due Diligence & Verification
Collection and verification of information on SME
Use of proprietary credit scoring to determine SME’s risk profile
Determine the deal size, tenor, and asset purchase markup
Launch of crowdfunding campaign
Funds are transferred to SME upon campaign success
SME purchases assets on behalf of financiers; buys assets from financiers at an agreed date in future