Koredor frequently asked questions

Crowdfunding serves as a dynamic method for sourcing capital from investors to fuel diverse projects and businesses. There are several types of crowdfunding, including debt, equity, reward, and donation-based approaches. Koredor specializes in debt-based crowdfunding, wherein an SME's debt or borrowings are converted into a promissory (promise to pay) note, creating an avenue for a collective pool of investors to participate.

With Koredor's crowdfunding concept, SEC-qualified individual and institutional investors can choose SMEs they wish to support, and the SME will repay the borrowed funds at the due date. This innovative form of fundraising presents a financing alternative for SMEs that are underserved or unserved by traditional financing institutions with more stringent and lengthy processes.

Koredor's crowdfunding platform facilitates a relationship that connects SMEs with a pool of investors eager to contribute to their growth and success.

Koredor serves as an intermediary platform connecting SMEs with partner investors for financing solutions. Koredor itself does not directly provide funds; instead, it collaborates with sophisticated investors who are willing to assist SMEs with additional capital and who they trust to pay back on time.

The SMEs or business owners who are availing of financing through a crowdfunding platform are referred to as Issuers. The Security or Promissory Note are issued by the SMEs, hence Issuers.

A note, or Promissory Note is a financial instrument that contains a written promise by the SME (Issuer) to pay the Investor a definite sum of money.

We cater to SMEs' business financing needs with our supplier financing: Purchase Order Financing, Invoice Financing and Working Capital Term Loans.

We do not provide personal financing services. Instead, our financing solutions are designed to cater specifically to the needs of Filipino SMEs seeking to achieve business growth and expansion.

For immediate concerns, you may reach us via info@koredorcapital.com.

You can start by creating an account here.

Your information is stored and used in accordance with our Data Privacy Policy. Koredor will not disclose customer information to third parties without your permission, and will not contact you for personal information other than during the verification process. You may visit our Data Privacy Policy for full information.

Your Relationship Manager will contact upon receipt of application to confirm the details. Once your information is complete and verified, your application will be submitted for credit evaluation. Term Sheet will be sent to your registered email upon financing approval. Following that, it will be endorsed for a 5-day auction, or earlier if we receive an early close bid from our investors. Funds will be disbursed in 1-2 business days after you accept the investor offer in the dashboard.

This is the fee that you pay to Koredor for each successful funding. The fee is deducted from the financing proceeds.

You may ask your Relationship Manager or contact us at info@koredorcapital.com to find out the status of your disbursement.

If the investor has bidded and fully funded a note at the onset of note listing, there is a possibility for earlier release of funds (early closing). Otherwise, a 5 day standard note listing period will apply to allow more time for investors to bid on the note.

Once fully funded, a notification will be sent to you indicating the fully funded status, a confirmation will be required for the acceptance of early closing. Once confirmed, other Investors will be given a 24-hour window to conduct rebidding in case they wish to do so. The auction will be closed if no bids are received.

Yes, we will be sending you an email confirmation once the disbursement to your bank account has been completed.

No collateral required! We only request a set of Post-Dated Checks (PDCs) as a form of security.

For security purposes of the collected PDCs, there are 2 options to choose from:

1. PDC Destruction: After financing is fully paid, the default option for the unused/remaining PDCS is by destruction. Issuers may sign the PDC Destruction Approval form in advance, which will be attached in Note Purchase Agreement upon signing. In case of disapproved destruction, we will send the result to the Issuer for second confirmation and will proceed to PDC Return.

2. PDC Return: For any PDCs collected for security purposes, we will return these to you and requests for the delivery details once the financing is fully.

• Return within Within Metro Manila – by using a recognized delivery application (e.g. Grab, Lalamove, etc)
• Return outside Metro Manila - by using a known courier (e.g. LBC and the like)
• For Pick up – The issuer may pick up the remaining PDCs in our office by coordinating with your Relationship Manager for pick up schedule.

Yes, you can pay off the financing before it matures with no penalties or charges. Please note that if you choose to pay off your financing before the minimum tenor is fulfilled, you must still pay off the minimum interest amount following the minimum tenor. The minimum tenor of a note is usually 14 or 30 days, depending on the tenor of the note.

Requesting for the re-computation for early repayment should be done between 9AM and 5PM, at least 1 day before the day of intended early repayment

We charge an additional 0.13% of the outstanding financing amount along with the daily interest amount for each day of late repayment. If you have any concerns before your maturity date, please contact your Relationship Manager.

There are many possible reasons why an application may be disapproved, among the top three reasons are (1) existence of default payments in bank, credit cards, and other lenders, and (2) capacity to pay, and (3) incomplete documents. We encourage you to talk to your Relationship Manager to assess which area you can work on to possibly get an approval in the future.

Missing payment on time will register as bad credit history and will make financing difficult for you in the future.

Invoice financing works by guaranteeing the financing with an invoice— a bill for goods or services given to you by your buyer. A single repayment should be made at the due date. You can use the funds to grow your business while waiting to get paid by your buyer.

* This will vary based on the assessment made by our Risk team.

You can get funds of up to 80%* of the invoice amount.

* This will vary based on the assessment made by our Risk team.

We charge an interest rate between 2% and 4% per month, depending on our Risk team's assessment of your business profile and the financing type.

Our proprietary credit scoring technology uses a risk-based pricing model to determine the interest rates, which are based on the profiles of your business and your client.

Our tenor ranges from 30 to 720 days.

The costs involved are the interest payment and the processing fee, called the Marketplace Fee. All costs will be made transparent to you in the term sheet.

We charge a processing fee of 5%, referred to as the Marketplace Fee, of the financing amount per each transaction.

Purchase order financing works by guaranteeing the financing with a purchase order— an order for goods or services given to you by your buyer. The financing due date will be set around the time that you expect payment from your client for the purchase order. Purchase order financing will help you accept larger orders from your buyer.

* This will vary based on the analysis made by our Risk team.

You can get funds of up to 50%* of the purchase order amount.

* This will vary based on the assessment made by our Risk team.

We charge an interest rate between 2% and 4% per month, depending on our Risk team's assessment of your business profile and the financing type.

A Real Estate Mortgage is an agreement where a real estate property is put up as a guarantee by the debtor (the "mortgagor") in the creditor's favor for a loan. If the debtor fails to pay the loan the creditor may foreclose the mortgage and sell the real estate property. The proceeds of the sale will then be used to pay the debt.

Unfortunately, Koredor's financing programs are exclusive to registered businesses.

Yes, you may use more than 1 collateral to increase the amount that you can borrow.

If the documents are complete and submitted on time, you can receive your fund between 5-7 weeks.

The note is payable from 7 months to 36 months.

Yes, you can choose how long you can pay to make payments easier and more flexible for you.

Unfortunately, early partial payment is not an option yet.

Yes, you can make early full payment without penalty.

Bullet payment or one-time payment at maturity is not an option yet. Payment option is monthly installment for principal and interest.

Marketplace fee, processing cost, and insurance.

The processing cost include but is not limited to appraisal fee, inspection fee, and annotation of mortgage to Registry of Deeds.

Fire Insurance and MRI.

Mortgage Redemption Insurance (MRI) is a type of insurance that will settle the outstanding mortgage balance in the case of death of the borrower.

In some cases life insurance may replace MRI with additional documentation needed like assignment of the investor as a beneficiary, among others. Talk to your Relationship Manager if this is an option you would like to take.

A co-borrower is an additional borrower whose name appears on financing agreements and will have an obligation to repay the loan. For mortgages, the names on the property's title will be co-borrowers.

Depending on whom the property is titled to and the relation to the business or company, we may accept subject to third-party REM. We can discuss the details more thoroughly with you.

The owner of the TCT will not change but we will register the mortgage on the property to the Registry of Deeds.

Missing payment on time will register as bad credit history and will make financing difficult for you in the future. You might also lose the collateral if payments remain unpaid for a certain period.

Currently, we can only accept individual and institutional investors that are Qualified Buyers defined in SEC SRC Rule 10 (https://www.sec.gov.ph/wp-content/uploads/2019/11/SRCRule10.1.pdf)

On Koredor, only Qualified Buyers as defined in SEC SRC Rule 10 can provide funding. These include banks, registered investment houses, insurance companies, pension or provident funds, registered securities dealers, and certain trust corporations. Other eligible entities include mutual funds, collective investment schemes, and certain foreign entities that meet the qualifications of financial sophistication and capacity under the SEC's guidelines.

Investor's Fees are calculated based on: (Rate * funded loan amount * tenor) / 365

Koredor, as a crowdfunding platform, performs KYC on SMEs (issuers), assesses their applications, and provides investors with details via a Fact Sheet. It secures legal agreements, administers disbursement and repayment transactions, and handles collection activities on behalf of investors

We offer Invoice Financing, Purchase Order Financing, and Working Capital Term Loans to SMEs.

While Koredor has measures to mitigate risks when approving applications, the investors bear the credit risks when funding applications from issuers. We advise investors to make use of our Fact Sheet to screen applications based on their own risk appetite.

If you are interested to apply as an investor, you can fill up the form on our investor page (https://www.koredorcapital.com/investor) or send an email to info@koredorcapital.com

You can call your assigned relationship manager or send us an email at info@koredorcapital.com or you may check your portfolio through your online portal.

New notes are made available on the platform nearly every day. You will be notified of new SMEs that apply through the investor portal.

Bid allocation is determined based on the following priorities (in order)

1. Bids equal to full note amount
2. Lowest Interest Rate
3. Time of bid (in the event of tied bids)

For Notes with full bids, the final rate will be the rate at which the winning investor bid.

For Notes with partial bids, highest interest rate among winning investor/s serves as the final interest rate to be applied.

Bids may fall within or below the price range stated in the Platform/Fact Sheet.

Bids may be cancelled within 24 hours and will be subject to a processing fee.

Standard Auction
The standard auction period is 5 calendar days.

Early Closing
In the event that the note reaches full allocation, the issuer has the option to initiate early closing, which closes the bidding in 24 hours. During this period, other investors can still place their bids.

Extended Auction
If there are no bids placed on the note after 5 calendar days, the note goes into extended auction for 10 calendar days. If there are no bids placed after the extended auction period, the note will be cancelled.

If the note does not reach full allocation, the issuer will be given the option the following options

1. Put up note for auction (re-listing) in order to raise a higher amount
2. Proceed with documentation & disbursement

Fact Sheets contain information on the approved notes that are available to be funded by investors. The investor can see the following on the Fact Sheet:

• Product type
• Note amount and estimated disbursement date
• Note maturity date
• Note tenor and minimum tenor
• Note price (interest rate and interest amount) range and the indicative note repayment amount
• Any purchaser fees
• Basic information on the SME's business, financial standing, and the PO/Invoice being funded

Funds will be directly deposited into the nominated issuers account. For security purposes funds will only be disbursed to accounts owned by the issuer.

1-2 working days

Yes, the issuer may fully pay prior to the original maturity date but must settle at least 30 days worth of interest.

The account will be turned over to Koredor's dedicated in-house collections team. Koredor will initiate the collection process by issuing warning letters, depositing the PDCs for safekeeping, and scheduling visits to the issuers. We will keep investors informed throughout this process and recommend possible endorsement to third party collection agencies or litigation if there is no movement despite in-house collection efforts.

Should the investor choose to turn over the account to a third party collection agency or for litigation, costs will be shouldered by the investor.

Koredor can be your lending arm and provide your suppliers/service contractors/merchants with access to alternative financing mechanisms. By being a Koredor anchor, your suppliers can maximize their business operations through more competitive rates and faster processing for financing compared to walk-in applicants.

Koredor is able to customize the partnership structure according to the specific requirements of your business. The objective of the anchor partnership is to generate value for both you and your associated network of suppliers.

Suppliers commonly encounter lengthy credit terms, resulting in a working capital gap. Koredor aims to assist suppliers in overcoming this working capital gap through the provision of alternative financing solutions, eliminating the necessity for conventional collateral. This approach ensures a seamless supply of goods and services, fostering an enhanced working relationship.

Yes. Koredor can accept such applications provided that the underlying transactions come from payors or clients that meet the criteria.

If you are interested to pursue an anchor partnership with Koredor, you can fill up the form on our anchor page or send an email to info@koredorcapital.com.

A Koredor Konnect Partner (KKP) is a person who has gone through Koredor's accreditation process to join the company's referral program and earn up to Php 50,000 per successful referral.

Any professional individual who has a network of business owners can qualify as a Koredor Konnect Partner (KKP).

As a Koredor Konnect Partner (KKP) you can refer the following:

1. Small and Medium Enterprises (SMEs) who are qualified for Koredor's supplier financing.
2. Qualified Individual and Institutional Investors as defined by the Securities and Exchange Commission on SRC Rule 10

Kick-start your journey to unlimited income potential as a Koredor Konnect Partner (KKP) by completing the accreditation as follows:

1. Sign up through this link: [link]
2. Go through the self-paced orientation.
3. Take the easy 5-minute quiz.
4. Sign the contract.
5. Start referring SMEs and earn.

The commission is 0.50% of the approved financing amount of your referral. The releasing of the commission is divided into two (2) tranches: the first tranche is being deposited into your bank account after successful disbursement of the funds to the referred SME, and the second tranche is being deposited into your bank account after full repayment of the note.

Once you have been successfully accredited as a Koredor Konnect Partner (KKP), you can start sending your referrals. Once we receive your referral, a Relationship Manager (RM) will further qualify and assess your referral and give you an update through a status sheet.

The initial contract is effective for one (1) year and will be subject to renewal.

Yes. You may still refer SMEs through our Express Referral and earn ₱300 for every qualified SME.

For immediate concerns, you may reach us via info@koredorcapital.com