Get to know SCP: five FAQs about the peer-to-peer lending and investment company

You may have heard of Southern Cross Partners, but who are we and what exactly do we do? Here are five commonly asked questions to help you to get to know SCP.

Southern Cross Partners (SCP) draws on more than 28 years of experience, providing quality loans and first mortgage investment opportunities to New Zealanders.

People unfamiliar with SCP often ask similar questions when they’re finding out more about the service we provide. Here are the five commonly asked questions people ask about SCP.

1. Who are Southern Cross Partners?

SCP is a New Zealand-based specialist lender providing peer-to peer (P2P) lending and investments. Founded as Southern Cross Finance in 1997, the company obtained a P2P licence in 2016 and expanded as Southern Cross Partners building on a strong reputation for providing short to medium term, property secured lending solutions.

Our loans are often used for investment purchases, construction and equity releases by borrowers who require a more bespoke lending solution than a traditional bank can offer, while offering investors opportunities in mortgage-backed investments.

SCP has grown to be one of the largest property-backed peer-to-peer lenders in New Zealand by embodying a personalised approached to lending - maintaining strong relationships with mortgage advisers, borrowers and investors, ensuring a sustainable and ethical approach to lending.

Side note: If you’re wondering if we are related to any businesses in the health or insurance industries, the answer is no! We are proud to be independently owned.

Learn more about who we are here.

2. How does SCP make money?

SCP generates income primarily through loan fees and interest rate margins. When borrowers take out a loan, they pay an application fee, and in some instances a renewal or early repayment fees.

The application fee, which is calculated as a percentage of the loan amount, varies depending on factors like loan security and duration.

In addition to fees, SCP earns income through the margin between the interest rate charged to borrowers and the interest rate offered to investors. This margin, which fluctuates depending on the loan, is clearly displayed on each listing, ensuring full transparency for investors.

While some margins are larger than others, this flexible approach allows SCP to structure competitive lending solutions while maintaining a sustainable business model. Click here to read more about our interest payments and fees.

3. Are the advertised rates on an investment listing always accurate?

SCP values honestly, loyalty and trust. That’s why when you see an interest rate displayed by SCP, that’s the interest rate you’re going to get. The interest rate that SCP displays is what you’ll receive for the original term of the loan you have invested in.

The only time an interest rate may change is when there are changes made to the loan or the loan term. For example, if the loan is renewed it may have a rate reduction or a rate increase depending on the current market conditions and rate environment. Learn more about our interest rates here.

4. What are the security measures you take to help protect my investment?

SCP offers first-mortgage security over New Zealand property. In addition, we lend our own money first, so you know that we back the loan before offering it to investors

SCP has always taken a conservative approach to high-quality lending and investing, meaning we take the time to ensure that the loan application terms such as rates, loan term and LVR are within an acceptable and achievable bandwidth. This helps set all interested parties up for success.

We are always focused on data privacy and protection, with our secure online investors’ portal a top priority. We have recently introduced new security measures to the investor portal including Multi Factor Authentication to help make sure your account is secure. Learn more here.

As a peer-to-peer lender, SCP can offer greater flexibility and take a considered case-by-case approach to a loan application. SCP knows that every situation is different and is experienced in identifying the best loan proposals to lend on and provide to investors,

The majority of borrowers who come to SCP are property investors and developers who require more short term, flexible lending than a traditional bank prefers to offer. For these loans SCP focuses primarily on the property security along with the borrower's overall financial situation. This makes SCP a valuable option for those who may not meet the strict requirements of mainstream lenders. Read more about how our loans work here. 

For more information, reach out to a member of the team via our contact form: https://www.southerncrosspartners.co.nz/get-in-touch/