Keeping you up to date on the world of Marketplace Lending
This article was originally written by and for Grownups.co.nz
It may seem like a popular fiscal trend, but marketplace lending isn’t new. In fact, it’s something that Kiwis have been doing for decades.
Before banks, shares and vigorous fundraising campaigns, there were honest New Zealanders helping each other out. Whether it was advancing a chunk of cash to a fellow Merino farmer or helping a friend set up a small business, marketplace lending is something that Kiwis have always embraced. Not because it was a Wall Street trend, but because it was the right thing to do. Kind of like a “you scratch my back I’ll scratch yours” scenario.
This is exactly how Zagga originally caught our attention. It’s good old fashioned market lending, only this time it’s backed by a polished business model, custom online platform and a passionate team of professionals.
Kiwis funding Kiwis
So what’s does this mean for everyday Kiwis? Basically, Zagga is changing the way New Zealanders invest and borrow money. Drawing on a wealth of knowledge and experience the company has built an exciting new platform designed to shake up New Zealand’s financial landscape.
The product is built around a peer-to-peer model and opens up a world of opportunity for both borrowers and investors. So how does it work?
Borrowers
Want to get an exciting new business idea off the ground? Maybe you want to expand an existing company or build your property investment portfolio? Whatever your needs, Zagga unlocks the freedom to borrow money at competitive rates, backed by flexible criteria that banks simply can’t offer. Once you’ve set up your loan requirements and credit profile Zagga uses its custom-built algorithm to match you to an investor. It’s as simple as that.
Investors
Want to grow your assets portfolio, maximise your investments or branch out into new territory? Maybe you’re just passionate about supporting New Zealand’s small business economy? Whatever your motives, Zagga lifts the lid on a carefully curated line-up of investment opportunities, using decades of experience to assess every loan carefully and assigning an appropriate risk grade and interest rate. Decisions are entirely yours, which means you’ll enjoy total control over who and what you want to invest in. You’ll also get to choose your preferred level of risk and return based on the details provided for every loan.
The end result is attractive returns, regular monthly payments and investment security, typically first mortgage over property. Not to mention the total peace of mind that comes from knowing exactly where your cash is invested.
A passionate team of people
From the Chairman and CEO to the cherry picked management team, everyone at Zagga is passionate about peer to peer lending. We’ve already met the team, but if you want to know more head over to the website for an introduction to the people that make Zagga tick.
Busting the myths
Despite the fact that it’s one of the world’s fastest growing marketplaces, peer-to-peer lending has endured its fair share of scepticism. Here at GrownUps we know better. We want to help our readers make the most of their assets which is why we’ve decided to bust some of the biggest myths and show you why marketplace lending is here to stay. Of course, not all peer-to-peer lenders are created equal so we’ll also spotlight some of the perks that make Zagga unique.
The Zagga difference is that if anything does go wrong with the loan, there’s real property involved to pay that loan back if needed.
First and foremost, Zagga isn’t a finance company which means it will never touch its investors’ money.
At its core, Zagga strives to make the entire lending process quick, easy and transparent.
Unlike Mr Trump’s tax returns, peer-to-peer lending is strictly regulated and scrutinised by the same strict standards as traditional lenders. This is done by the Financial Markets Authority (FMA) who are also responsible for issuing licences
Speaking of which… Zagga is fully licensed and holds a Financial Service Provider licence (FSP 393946) to provide peer to peer lending under the Financial Markets Conduct Act (2013).
Additionally, Zagga fully complies with the requirements of the Responsible Lending Code and applicable Anti-Money Laundering regulations.
We may be an online platform but Zagga definitely isn’t manned by robots. When you ring the hotline during business hours you’ll always speak to a real person.
Unlike some companies, Zagga will never reveal the names and details of investors to borrowers. This ensures borrowers remain nonaligned and investors remain anonymous.
All loans are fully secured by tangible assets, with security held by Magna Trust.
The final verdict
To us, marketplace lending is one of the things that built our brilliant little country from the ground up. That’s why we can get behind Zagga’s goal of introducing real Kiwi investors to real borrowers with real goals.
The result? Borrowers enjoy easy access to funding, while stakeholders receive higher returns on safer investments. But more importantly, we love the fact that Zagga is all about helping good, honest people get the money they deserve.
