With economic hardship expected to increase for many this year, we’re focused on attracting high quality investments. We have a robust loan management strategy in place to ensure this remains the case through economic uncertainty.
Southern Cross Partner’s target is short-term property lending to borrowers looking for alternative funding to the banks. Our investments are secured by a first mortgage, and we outline a clear exit strategy with every borrower.
We are conservative lenders who know what types of deals work for us and we lend on them, and them alone. We have been doing this for more than 25 years, and while past performance doesn’t indicate future results, we’re proud to say that no investors have ever lost any money.
We lend our own money first before we place the loan on our investor platform for you to invest in. This is a key element of SCP’s strategy because it gives investors greater loan choice and peace of mind.
In times of economic uncertainty, we often experience an increase in loan renewals. A loan renewal is where a loan surpasses its expected maturity date and the borrower requests more time to repay the loan.
A loan renewal is not necessarily a sign of a bad loan. There are many external factors that impact both our residential and construction loans, such as delays in council code of compliance, supply or labour shortages or other delays.
Be assured that each loan that requests a renewal goes through the same high standard of due diligence as a new loan, before being approved.
Not all requests are approved and if the loan is no longer suitable for SCP, or our investors, we will use the legal rights we have as first mortgagee to ‘encourage’ a repayment as soon as possible, or instigate a sale.
SCP is the loan manager, and we manage all aspects of the loan on behalf of the investors.
To understand more about our investment strategy and what that means for your potential returns, feel free to give our friendly investment team a call. They’re always available to answer any questions you may have.