Frequently Asked Questions

SELLER
General
Is KyoPay registered by any government body?

Yes, our company name is KyoPay Technologies and is a registered corporation as an online marketplace for movable assets.

How does it work?

There is a one-time registration, Know Your Customer (KYC) process which is very similar to banks. Once registration process is completed, you are able to post the invoices in KyoPay’s platform. KyoPay does its due diligence of confirming the validity of the invoices posted. Once approved, your invoice will be posted on our online platform and buyers make bids on an online auction. After the auction you can request to get your funds.

How do we know if our business is eligible for KyoPay’s services?

So long as your company fits the following criteria:

  • Legally registered in the Myanmar (Corporation / Partnership / Sole Proprietor).
  • The company engages in business-to-business, service now pay later model.
What invoice amounts will be accepted?

KyoPay will accept an invoice with at least a minimum value of MMK 1,000,000.

What is the discount rate?

The discount rate is based on the payment behavior and credit rating of your clients through a proprietary algorithm that measures the risk of delay and default of payments.  It also takes into account the financial standing of your client and how long the invoice has been outstanding.

KyoPay asks for an average discount rate of 2%-5% of the invoice face value per 30-day cycle. For example, if the maturity date/payment term of your invoice is scheduled to be paid in 60 days, then the discount rate will be multiplied by 2.

Application
How do I sign up as a seller?
  • Sign up in KyoPay’s platform: <link to platform>
  • Verify your email
  • Complete your ‘Know-Your-Customer’ (KYC) requirements
  • Entering Memorandum of Agreement with KyoPay
  • Once your account is verified, you can start uploading your invoices for invoice selling at a discounted price.
What are the KYC requirements?
  • Personal Information
  • Business Information 
  • Valid Identity 
    • Soft copy of NRC / Passport
    • Soft copy of NRC / Passport of authorized persons
  • At least one (1) latest Billing Statement billed to the Company Address 
    • Utility Bills (i.e. Electric, Water, etc.) 
    • Copy of Company Bank Book / Bank Statement
  • Business Documents 
    • Company Registration Card
    • Articles of Association (if applicable)
    • Memorandum of Association
    • Form 6, Form 26
    • BOD resolution to open platform trading account and appointment of an authorized person to perform all action relating with invoice selling in KyoPay’s platform (stating NRC number)
    • *For Import/Export business, licenses of import/export are required

*We only accept JPEG, PNG, and PDF file type with a maximum of 5MB per file.

Which banks are accepted?

For fund deposit - All registered banks in Myanmar.
For fund release/disbursement - All registered banks in Myanmar

**There may be some banking charges depends on your selected banks.

TRANSACTION
How much of my invoice will be supported?

You can sell 100% of your invoice - less the any tax (i.e. Commercial Tax, Withholding Tax, etc.). We only support the face value of the invoice, hence any Tax amount which will be collected from your client will be credited to you on the collection date. 

The responsibility of related tax payments which arise from your original transaction with your client is rest on you.

How soon will my invoice be put up for sale from invoice upload?

Invoice approval and validation usually take about 24 hours (during business days). Upon approval, your invoice will be scheduled for auction equating to a total of 2 days. Once an invoice has been awarded to the winning buyer, the funds will automatically be reflected in your e-wallet and it is ready for a withdrawal request.

How do you compute for the discount rate?

You give us a list of your clients and we will check the credibility of your clients. This means company background research. The initial discount will be based on your clients (1) Financial Standing, (2) Info in Supplier Payments - how long do they actually pay, (3) Size of your invoice. The higher the financial standing, the lower the rate and vice versa. If your client on average pays 30 days after the due date, we’ll also add 30 days on top of your invoice due date. All of this is factored in to give you an initial discount rate for your invoice.

Are the discounts rates fixed?

The system will only be providing initial rates because during the Invoice Auction, invoice buyers will be bidding down on your invoices. So for example you may initially get a total discount of 5% but through the bidding system it has potential to decrease to 4% or 3%.

Are there any fees?

We will deduct a invoice posting and processing fee of 2% of the total face value of the invoice once your invoice has been sold and any applicable taxes.

How do you verify the invoices?

Verifying your invoice will take in 3 forms:
We directly contact your client - by means of calling or sending an email.
You send an email confirmation for the invoices to your client and put BCC us in the email exchanges.
Providing us with supporting documents (a) Contract with your client, (b) Receiving copies /stamped invoice from your client, (c) Purchase order from your client, (d) Any evidence that can support that the service/product is completed.

What exactly are KyoPay asking from your client?

We’ll resend them an invoice copy and verify the details: 
(a) Invoice Amount
(b) Applicable taxes
(c) Date of Collection

Are there any legal implications to selling an invoice?

When you have successfully sold your invoice, you are legally transferring the invoice ownership from you to the buyer of the invoice (through the Standard Terms and Conditions of Sales and Mutual Agreement), you are also transferring the risk of late payments. This also means that your invoice buyer will have the right to collect from your client if it passes the expected date of payment.

How do I make a withdrawal?

Log in to your account
In your sidebar, click ‘Withdraw’ menu
Fill in the necessary details
Click ‘Continue’ button
A confirmation will prompt you that the request is successful.

*The maximum amount for withdrawal is MMK 100,000,000.00. For withdrawal requests more than MMK 100,000,000.00, you can make a separate ticket.

How fast is fund disbursement upon request for a withdrawal?

Upon withdrawal request, a transfer from your e-wallet to your company bank account will take 1 to 3 business working days depending on your selected bank. (to include bank clearings).

What happens when my Invoice is not sold?

In the unlikely event that your invoice is not successfully bought, you may choose resell that invoice for the next auction or (or you may withdraw your invoices from the platform) it goes through the normal terms of payment with your client.

Can we apply for another invoice sale if we already have an active invoice sale with KyoPay?

Yes, you may apply for a subsequent invoice sale with KyoPay as long as it is within your transaction cap.

Which currency can the platform support?

Currently, the platform is only supporting for MMK.

If the invoice value is in USD, we will negotiate the exchange rate by using CBM USD exchasnge rate of the date of invoice uploading and if the seller agreed that rate, Seller can upload the invoice with MMK value on the platform.

Therefore, you will receive your invoice selling in MMK.

When the payment is made by Payor in USD, we will convert it into MMK by using the exchange rate of that payment date. If there is any difference in the invoice face value (which was agreed on invoice selling) for the repayment, there will be cash adjustment by KyoPay and Seller will incur for any surplus/deficit of that payment.

REPAYMENT & COLLECTION
Who collects payment for the invoices I have sold in the KyoPay Platform?

KyoPay will collect the payment on behalf of the invoice buyer.

KyoPay’s collection team will follow up on the payments of your clients and we will collect on your behalf. All you have to do is to authorize us to collect from your client. Given that you have already assigned your invoice to the buyer, the buyer now takes on the risks of late payment. And since we are directly collecting the whole amount from your client, we will remit the tax payment paid by your client to you and we will hold only the invoice face value.

  •  Cash collection requires only an authorization letter from the Seller.
  • If your clients make bank transfers directly to your bank account, you have to immediately remit the repayment amount value back to the segregated account in within 24 hours. If you fail to remit within the same date of funds receiving from your client, you will be imposed penalties in daily penalties
  • Cheque Payments collection or Cash collection requires an authorization letter from the Seller and a cheque from the Seller addressing to KyoPay’s segregated account
What happens when my client fails to pay on the due date of the invoice?

KyoPay uses a proprietary algorithm to measure the risk of delay and default of payments. Our company considers previous payment behavior and incorporates in the expected days of repayment and collection. If your client on average pays 30 days after the due date, we’ll also add 30 days on top of your invoice due date. This will now be the adjusted due date.

What happens when my client fails to pay on the adjusted due date of the invoice?

Selling your invoice means assigning its risks to its buyers. You’ll be asked to assist in collecting from your client from time to time and if needed but it is ultimately the Buyer’s responsibility to follow up payment.

What is the standard process of collecting payments from the Payors?

KyoPay introduces itself as your 3rd party collections agency. KyoPay gives out reminders 5 days before the due date. On the due date of the invoice, and once the invoice falls delinquent we do a daily reminder until we have received a pay date promise from your clients. This is all done in the most respectful manner as our value proposition to our Sellers is making sure their business relationship with their clients improves with KyoPay.

Who can be the buyers of my invoices

Your invoices will be bought by investor who tend to be high net worth individuals or institutional investors, or hedge funds.

Will my clients know if I have sold the invoice

Yes, your clients related with the invoices that you are going to sell may be aware that you have sold the invoices as we have to ask your clients as a process of invoice verification for your invoices.

How can we contact KyoPay for additional questions and concerns?

You can email us at info@kyopay.co for any queries and our team will get back to you within 1 hours (between 9:00 AM - 6:00 PM of a business day Yangon Time).

BUYER
GENERAL
Is KyoPay registered by any government body?

Yes, our company name is KyoPay Technologies and is a registered corporation as a online marketplace for movable assets.

How does it work?

There is a one-time registration, Know Your Customer (KYC) process which is very similar to banksSellers who want to sell their receivable invoices will post their invoices in KyoPay’s platform. KyoPay does its due diligence of confirming the validity of the invoices posted. Once verified, we will schedule an Invoice Auction where you can make bids on available invoices for a portion of a day. Once the auction ends, the buyer with the highest bid is awarded the invoice.

What are the basic qualifications to be become a KyoPay Buyer?
  • For Individuals
    • You need to be at least 18 years old to participate. Both local and foreign buyers are accepted as long as they have a local account in Myanmar.
  • For Institutions
    • Both local and foreign financing, asset management or investment firm are eligible to participate.
How does KyoPay assess the Payors?

Payors, which pertain to the clients of the Invoice Sellers, are the focus of the assessment. KyoPay checked the financial standing and reputation of Payors and combined with the risk of delay and default of a transaction based on the experiences of the Payor and the Seller.

APPLICATION
How do I sign up as a Buyer?
  • Sign up in KyoPay’s platform: <link to platform>
  • Verify your email
  • Complete your ‘Know-Your-Customer’ (KYC) requirements
  • Complete the Anti-Money Laundering Form and Requirements
  • Entering into Memorandum of Agreement with KyoPay
  • Once your account is verified, you can start uploading your invoices.
Is there a minimum deposit?

Currently there is no minimum deposit needed. You may choose to deposit earlier to save yourself the trouble of hurrying to the bank when you receive an invoice auction schedule but we usually give the buyers one (1) day to deposit their funds from date Invoice Auction.
The following deposit procedures are observed:

  • You can deposit through the following methods:
Check Deposit 
Bank Transfer 
Cash Deposit 

Account Name: ---
Account Number: ---

  • In your dashboard, click the ‘Deposit’ menu. Under the ‘Add Funds’ tab, input the details of your deposit and upload your deposit slip for verification.

*We only accept JPEG and PNG files maximum of 1MB for the deposit slip. 

  • Our team will verify and approve your deposit, once approved it will be automatically reflected in your wallet. You will also receive an email from us confirming your deposit.
What are the KYC requirements?

Corporate Buyer

  • Personal Information
  • Business Information 
  • Valid Identity
    • Soft copy of NRC / Passport
    • Soft copy of NRC / Passport of authorized persons (if any)
  • At least one (1) latest Billing Statement billed to the Company Address 
    • Utility Bills (i.e. Electric, Water, etc.) 
    • Copy of Company Bank Book / Bank Statement
  • Business Documents 
    • Company Registration Card
    • Articles of Association (if applicable)
    • Memorandum of Association
    • Form 6, Form 26
    • BOD resolution to open platform trading account and appointment of an authorized person to perform all action relating with invoice selling in KyoPay’s platform (stating NRC number)
    • *For Import/Export business, licenses of import/export are required

*We only accept JPEG, PNG, and PDF file type with a maximum of 5MB per file.

Individual Buyer

  • Personal Information
  • Valid Identity
    • Soft copy of NRC / Passport
    • Soft copy of NRC / Passport of authorized persons (if any)
  • At least one (1) latest Billing Statement billed to the your Present/Permanent Address 
    • Utility Bills (i.e. Electric, Water, etc.) 
    • Copy of Company Bank Book / Bank Statement

*We only accept JPEG, PNG, and PDF file type with a maximum of 5MB per file.

Which banks are accepted?

For fund deposit - All registered banks in Myanmar.
For fund release/disbursement - All registered banks in Myanmar

(List of Acceptable Banks - Annex A)

Buying Receivables
How do I begin Buying?
  • First, you must log in to your account.
  • You can browse for the receivables for sale in the "Marketplace" menu on the sidebar of your dashboard. We will remind you via email at least one (1) day before the next auction, so you have enough time to deposit funds in your account.
  • To bid, your e-wallet balance should be equal or more than the face value of the invoice you are bidding for. So if you are bidding for a receivables worth MMK 10,000,000.00, your e-wallet balance should be equal to or more than this amount. Otherwise, you will not be able to bid for that particular receivable.
  • The exciting part of the auction is the competition. Remember that you are competing with other buyers during the auction, and someone may also be observing to outbid your current bid.
  • Once you have placed a bid on a receivable, an amount equal to half of the invoice value will be held (meaning, you cannot use that amount to bid for other receivables) until the auction is done or someone outbids you.
  • In case you win the auction, KyoPay will take the full amount from your e-wallet and the awarded invoice will be assigned to you (a “Standard Terms & Conditions of Sale” and Mutual Agreement). If you are unsuccessful in the auction, the amount held from you will be given back to your e-wallet, so you can participate the next bidding. You can bid as many invoices as you want as long as you have enough balance in your e-wallet.
As buyers, what are we buying?

As corporate/individual Buyer in our platform, you will be funding the invoices of SMEs with promising projects; an alternative investment platform. 

By buying receivables, you will be a catalyst for the growth of SMEs so they do not have to wait for them to get paid. This will help them grow the business faster.

When you have successfully bought an invoice, the Seller is legally transferring the invoice ownership from them to you, the buyer of the invoice (through the “Standard Terms & Conditions of Sale” and Mutual Agreement), they are also transferring the risk of late payments. This also means that you are the buyer of the invoice will have the right to collect from your client if it passes the expected date of payment.

How will be know if the invoices are legitimate?

Verifying an invoice takes 3 forms:

  • We directly contact the client of Invoice Seller - by means of calling or sending an email.
  • Invoice Seller send an email confirmation to their client for the invoices for sale and put BCC us in the email exchanges. We’ll resend to the Invoice Seller’ client an invoice copy and verify the details: 
    • (a) Invoice Amount
    • (b) Applicable taxes
    • (c) Date of Collection
  • Providing us the  supporting documents by Invoice Seller (a) Contract with their client, (b) Receiving copies /stamped invoice from their client, (c) Purchase order from their client, (d) Any evidence that can support that the service/product is complete
May I know the details of the Seller after I bought the receivables?

During the auction, we can disclose the name of the SME’s client(s). Rest assured, the company’s public data will be provided to you. In addition, their risk scores of delay or default payment will be included.

How long is the bidding/auction of the receivables?

Starting from 9:00 am to 1:00 pm.

How much is the average value per invoice?

The invoices are sold as one, which means one invoice is for one Buyer. Average per invoice value ranges from MMK 1,000,000 – MMK 100,000,000

How are discount rates determined?

KyoPay determines the floor price for the bidding of the invoices, which varies depending on the delay and default risk of an invoice. 

The initial discount will be based on the Invoice Seller’s clients (Payor) (1) Financial Standing, (2) Info in Supplier Payments - how long do they actually pay, (3) Size of the invoice. The higher the financial standing, the lower the rate and vice versa. If the Payor on average pays 30 days after the due date, we’ll also add 30 days on top of the invoice due date. All of this is factored in to give you an initial discount rate for the invoice.

Buyers will then bid out for the invoice within 4 hours, and the winner with the closest bid to the X% (of invoice value) ceiling price wins. 

Sample Computation:

Invoice Value: 100,000
Monthly Discount Rate: 3%
Total Days till Maturity (number of days delay incorporated): 47
Total Rate: 4.7% (47 days * 3%/30)
Total Discount Amount (Gross Buyer Earning): 4,700

What are the fees associated with buying invoices?

25% (service fee) of your gross earnings will be deducted as part of KyoPay’s service fee. 

*Exclusive of the 5% commercial tax of the 25% service fee.

What is the default rate?

Currently, our default rate is 0.00%

Based on our scoring system, we are not accepting invoices that have risks of default. It is very important for us to make sure that our default rates in the platform are within banking/financing standards. More so, the higher the risk of the invoice, the higher discount rates we provide.

Is the gain on purchase of invoice I earned taxable?

Yes, the gain on purchase of invoice is taxable and can be considered as another source of income (assuming that the BUYER has a main source of income). It will be your responsibility to declare your earnings and income from transacting in KyoPay Platform.

Both Local and Foreign Buyers are still subjected to the Commercial Tax of KyoPay’s service fee.

Why does the Face Value of the invoice differ from the Invoice Amount in the physical invoice copy?

These are just the common reasons for this:

  • Withholding Tax
  • Commercial Tax; are already deducted from the Invoice Amount – we show only the original goods or services amount.
What happens if the invoice repayment defaults?

In the rare event of a default, KyoPay is on standby to pursue fund collection. If it fails, we would assist our buyers in taking legal action to exercise the rights on the invoice. As a buyer you have the legal and collection recourse from the Payor, being the owner of the invoice. Collection activities will be fully passed on to the Buyer once after the invoice reaches 30 days beyond the adjusted due date of the invoice.

How do I minimize the risk?

Like any other investment, we encourage our buyers to diversify your investments in different invoices. If you plan to buy in a low scored invoice, we highly suggest you also back it up with conservative invoices to even the odds.

Can I cancel an invoice that I have already bought?

Once you have bought an invoice, you cannot cancel it. This is to be fair with the SMEs, as an attempt to back out from such agreement would disrupt the whole business process. With this, we highly suggest that you properly review all available invoices for auction/sale before confirming.

When is the repayment made?

Repayment is made after a clearing period once the invoice falls due.

Who handles the collection?

KyoPay collects from the Payor on behalf of the buyer of the invoice.

KyoPay’s collection team will follow up on the payments of Seller’s clients and we will collect on your behalf. Invoice Seller gives us authorization to collect on behalf of them to collect payments from their clients.
 
From the collection, KyoPay has a prescribed number of business working days to clear the payment. (1 to 3 business working days)

How do I make a withdrawal
  • Log in to your account
  • In your sidebar, click ‘Withdraw’ menu
  • Fill in the necessary details
  • Click ‘Continue’ button
  • A confirmation will prompt you that the request is successful.

 
*The maximum amount for withdrawal is 100,000,000 MMK. For withdrawal requests more than 100,000,000 MMK, you can make a separate ticket.
 
*Depending on the bank, you can get the amount in as fast as real-time up to 3 business days.

What legalities have you set to be able to ensure the invoice subrogation and payment?

The Invoice Seller is bound by the contract with KyoPay to transfer the collection and economic rights of the invoice to the buyer of the invoice. 

Once an invoice is awarded to you, you will receive a soft copy of the “Standard Terms & Conditions of Sale”, it will be the prerogative of the Buyer if you wish to strengthen the “Standard Terms & Conditions of Sale” through signing and stamping the document. KyoPay will assist in the getting the authorized signatories and the stamping but it will be the buyer who will shoulder the stamping fees.

Which currency can the platform support?

Currently, the platform is only supporting for MMK.

If the invoice is in USD, we will negotiate with the seller to change the invoice amount to MMK by using CBM rate of the date of invoice uploading.

For the funder, there can be a difference between the actual invoice value (which is in USD) and adjusted invoice value (which is in MMK).

But the funder can buy the invoices with the value in MMK and there will be no impact on the funder due to the exchange rate.

It means that if you are buying the invoice in MMK value, you will get back the same payment with MMK.

Annex A

List of Accepted Banks for Bank Transfer