Cycloan

Frequently Asked Questions

peer-to-Business
Getting Started into Tech Peer To Peer Business financing

What is Cycloan?

Cycloan is a P2P lending platform connecting tech sme/ startups and Sponsors. It is building a new de centralized financing ecosystem that will fundamentally change the way tech business get their projects financed

What is the currency for all transactions in Cycloan?

Cycloan transactions in Singapore is carried out in SGD and outside Singapore transactions are carried out in USD

Does Cycloan lend money by itself?

Cycloan is the intermediary between the sponsors and tech sme’s. In cases of good projects that are missed by the qualified investors are funded by the Cycloan tech fund

What is smart contract?

The smart contract is a blockchain enabled contract that saves all the data about the sponsor and tech sme. This data includes the ownership details, documents and transactions on the platform

What is Cycloan technology fund?

Platform provides capital to good projects that are missed by the qualified investors in the initial phase of matchmaking

Who can borrow in Cycloan?

To qualify, your business must be a registered entity in its operating country, with an operating history of at least 2 years. In case of Singapore the entity must be registered with ACRA

How can I borrow in Cycloan?

  • Get verified – To become a borrower, you must be verified, therefore, the platform asks for set of a documents which needs to be submitted and verified
  • Loan quotation – once you are verified, you can fill out a loan quotation with interest rates that fits your fund requirements. A personalized smart contract is created in the blockchain and it includes all details .
  • Marketplace - The project details with the bid equivalent of the funds and interest rate details is posted in the Cycloan marketplace. Lenders from all over the world bid for your project and the suitable lender will be matched to your project loan by Cycloan marketplace. A personalized smart contract is created in the blockchain and it includes all details .

Minimum, Maximum funds and the number of projects that can be borrowed or funded ?

Cycloan has no restrictions on the number of projects and funds per project for both SMEs and sponsors. Quality and creditworthiness of the project/SME plays an important role and is the deciding factor to be a part of Cycloan system

List of documents required to become a borrower on Cycloan?

Tech SME/start up in Singapore
  1. Certificate of incorporation
  2. Company Constitution
  3. Financial statements (last 2 years or 1 year audited)
  4. Management accounts for the current year
  5. Latest ACRA business profile
  6. NRIC & Passport of directors / shareholders
  7. Proof of address for company directors
  8. Bank statement for last 1 year
Tech SME/ start up outside Singapore
  1. Certificate of Incorporation
  2. Company constitution
  3. Financial statements (last 2 years or 1 year audited)
  4. Management accounts for the current year
  5. Latest country register specific business profile
  6. Country registration id and passport of directors and shareholders
  7. Proof of address for company directors
  8. Bank statement for last 1 year

How much is the commission for cycloan in a transaction?

Commission for Cycloan in any transaction depends upon the project value of SME and the risk assessment of the project conducted by Cycloan

What is the time for KYC verification?

Typically within 48 hours of our team getting all required documents and information

What is the time taken for project verification?

Typically within 48 hours of our team getting all required documents and information, and ascertaining that the funding application meets the credit risk criteria.

What is the repayment process?

The repayment process will be dependent on the project value , project duration and the contract signed between sponsor and SME

What is the procedure for default?

The default criteria is decided based on the agreement signed by the SME and Cycloan during the SME approval and it is specific to the SME

Under what circumstances will my project be funded by cycloan tech fund

Projects that are evaluated as good and credible by Cycloan system, but has not gained enough tractions from the sponsors will be funded by Cycloan technology fund. Sponsors can also allocate a part of their investment in Cycloan tech fund which can then be used for funding projects

Do I have access to all players on cycloan platform ?

Yes all stakeholders will be allowed to participate in Cycloan ecosystem

What is cycloan ecosystem ?

In phase 2, Cycloan partners can provide resources and assets to project owners and SMEs through a procurement and commerce platform. This platform provides services like purchase equipment, obtain licenses, and other things required to complete their project

What are the membership plans for borrowers ?

Membership plan for SMEs is coming soon and will be displayed in the product – SME login

Who can sponsor on Cycloan?

To qualify, your business must be a registered entity in its operating country, in case of a Tech company or financial institution. In case of high net worth individual, the individual must be an accredited investor

How can I sponsor in Cycloan?

  • Account creation - To become a Sponsor, you must create an account on the cycloan platform, the platform asks for set of a documents which needs to be submitted and verified
  • Project Marketplace- Project marketplace consists of list of IT projects from tech sme’s/ startups across the world. Interested project can be selected and bid needs to submitted for the project.
  • Funding Project - The platform matches the project to the investor with highest bid. A personalized smart contract is created in the blockchain and it includes all details .

Do you need to pay any fee for registering as a Sponsor in Cycloan ?

No, there is no registration fee for sponsor

Is there any minimum amount that is to be kept in the escrow account ?

When the project is matched between a sponsor and SME by Cycloan and system asks for confirmation from the sponsor for funding the SME, the sponsor should have the project value (to be funded) as a minimum amount in the escrow account.

What is the maximum amount that can be funded ?

The maximum amount that can be funded depends upon the worthiness and valuation of the projects submitted by SME and the risk assessment carried out by Cycloan. There is no upper limit on the amount that can be funded

What type of projects are available in Cycloan?

Tech SME/start up in Singapore
  1. • Govt.
  2. • Private
  3. • Others

What are the practice areas of projects that are available in Cycloan?

At present, Cycloan lists projects in these areas
  1. • Hardware
  2. • Software
  3. • Cyber Security
  4. • Network
  5. • Infrastructure

What details of tech sme’s/startups will be available for me as a sponsor on Cycloan?

Tech SME/start up in Singapore
  1. Certificate of Incorporation
  2. Company constitution
  3. Financial statements (last 2 years or 1 year audited)
  4. Management accounts for the current year
  5. Latest country register specific business profile
  6. Country registration id and passport of directors and shareholders
  7. Proof of address for company directors
  8. Bank statement for last 1 year These are the documents collected from the borrower during onboarding process. Based on the sponsor requirements additional documents can be collected on a case to case basis

What happens if tech sme/startup makes late repayments?

Cycloan collects penalty fees for SME’s making late repayments

What happens if tech sme/startup defaults?

The default criteria is specific to the Terms & conditions signed by the SME with Cycloan at the time of registration

How do cycloan prevent tech sme/startup fraud?

Cycloan conducts end to end robust digital KYC verification process and ensures only genuine and credible SMEs and sponsors to be a part of the system.