For a growing business, winning a major contract can bring new opportunities, but it can also put pressure on cash flow. Staff and suppliers often need to be paid months before customers settle their invoices, leaving businesses struggling to cover immediate operating costs.
This was the challenge faced by Manforce Group Berhad, a workforce management company that turned to CapBay for financing as it expanded.
“Cash flow management is one of the most critical challenges for growing businesses, especially in workforce management where we must upfront significant operational costs on behalf of clients,” said Andrew Chin, Finance Director of Manforce Group Berhad.
He added that CapBay took the time to understand the company’s business model and offered flexible terms, unlike traditional financing models that focus heavily on physical collateral.
Faster access to funds also helped Manforce Group bridge liquidity gaps during challenging periods, including the COVID-19 pandemic, and optimise its cash conversion cycle so it could pursue business expansion with greater confidence.
The company is among more than 2,700 small and medium-sized enterprises (SMEs) across 20 industries that have worked with Bay Group Holdings Sdn Bhd, better known as CapBay, which marked its 10th anniversary on 16 October 2026.
Since its establishment, the Malaysian fintech company has facilitated more than RM6 billion in financing through 45,000 financing notes.
“Our first financing was RM6,000 to a sole proprietor trying to bring in lab equipment for a Malaysian university. Ten years and 45,000 financing notes later, we’ve crossed RM6 billion,” said Ang Xing Xian, Co-Founder and Group CEO of CapBay. “That number is not one we celebrate for its own sake. It is thousands of payrolls met, contracts delivered and businesses still trading,” he added.
Using Business Data to Improve SME Financing Access
CapBay provides Supply Chain Finance and Peer-to-Peer Financing (P2P) through platforms designed to help businesses access working capital.
Rather than relying primarily on physical assets such as property as collateral, its approach assesses businesses based on their trading activities. This includes live trading data, invoice validity and buyers’ payment records, which can reduce financing approval times from months to days.
By focusing on how businesses operate and generate revenue, the company aims to help SMEs address cash flow challenges and access financing to support their growth.
CapBay has also become a channel for public funding through co-investment frameworks such as the Malaysia Co-Investment Fund (MyCIF) and the NIMP Strategic Co-Investment Fund (CoSIF), both under the Securities Commission Malaysia (SC).
It serves as an appointed financial intermediary for SME Corp. Malaysia under the Ministry of Entrepreneur Development and Cooperatives (KUSKOP), supporting national financing schemes such as BERKAT and programmes under the 13th Malaysia Plan (RMK13).
The company also works with TERAJU to support Bumiputera entrepreneurs and the Malaysia Digital Economy Corporation (MDEC) under the MD Technology Financing Programme. These partnerships contribute to national priorities, including the development of Malaysia’s digital economy.
Budget 2027 Strengthens Support for P2P Financing
CapBay’s 10-year milestone comes as alternative financing gains traction among Malaysian businesses.
Since the Securities Commission introduced its P2P regulatory framework in 2016, SC-registered platforms have become an established channel for business financing.
According to the SC Annual Report 2025, alternative financing avenues raised RM5.7 billion for micro, small and medium-sized enterprises (MSMEs) and mid-tier companies in 2025, representing a 39% year-on-year increase. P2P financing accounted for RM2.8 billion, up from RM2.5 billion in 2024.
Budget 2027, tabled on 9 October 2026, further reinforced the role of digital financing platforms in supporting businesses. The Government allocated RM270 million to attract private capital into SMEs, mid-tier companies and social enterprises through P2P financing and equity crowdfunding platforms.
The Budget also set stamp duty on financing agreements executed through P2P platforms at RM10 for agreements made from 1 January 2027 to 31 December 2030.
“Budget 2027’s support for P2P platforms confirms that regulated digital financing is now part of how Malaysia funds its SMEs. Our job in the next decade is to get that capital to every viable business that needs it,” Ang said.
CapBay Looks Ahead to Its Next Decade
As it enters its second decade, CapBay plans to deepen its public-private partnerships and further develop its artificial intelligence (AI)-driven credit assessment capabilities.
The company aims to reach more Malaysian businesses across different sectors, continuing to provide financing options for companies that need working capital to manage operations, fulfil contracts and expand.
Its growth from an initial RM6,000 financing facility to more than RM6 billion facilitated over 10 years reflects the expanding role of alternative financing in helping SMEs navigate cash flow pressures and pursue new business opportunities.
