As an investor, you already know the importance of investing your money instead of hoarding it. A good investor is someone who is proactive, sets financial goals, and is familiar with a variety of investment options.
There are a number of investment options for you to choose from and each comes with its own pros and cons.
In this article, we will discuss peer-to-peer lending with Southern Cross Partners.
What is Southern Cross Partners?
We started in 1997 as Southern Cross Finance Limited and are 100% NZ owned.
We have been providing an alternative financial solution to Kiwis who are unable or unwilling to secure finance through big corporate banks.
As legislation changed over the years, the company evolved into Southern Cross Partners - the largest property backed peer-to-peer lender in New Zealand.
For the past two decades, we have earned credibility through our simple process, affordable solutions, and friendly service from our experienced team - 22 years of experience cannot go wrong.
Our peer-to-peer lending process
The investment opportunities that are offered are first mortgage secured loans that we have provided to our clients who sought a non-bank, short-term lending solution.
Here is an easy, step-by-step explanation:
1. A borrower requires a loan
When a borrower approaches us for a non-bank borrowing solution, their loan application is assessed by our credit team. We use our own funds, initially, to provide this loan.
2. The loan is loaded onto the Southern Cross Partners website for your selection
If you visit our website, you will notice that we have created a separate portal for investors to log in and take a look at the available loans. You can take all or part of these individual loans as peer-to-peer lending gives you the flexibility to invest in many loans at once.
3. Your funds are allocated to the loans of your choice
Once you have selected the loans you want to invest in, you can transfer your funds to us securely. The first mortgage will be held in trust for you by our Trustee Company, Loan Investment Trustees Limited.
4. We will continue to manage the loans that you have invested in on your behalf
Even though you have invested in the borrower's property supported by a first mortgage, you will not have any contact with them and we will manage your investment on your behalf. After collecting the interest payments from the borrower, we will pay you your interest each month.
When the loan repays, we will collect your funds for you and repay it back to you in accordance with your instructions. If there are any problems with the borrower or loan, we will deal with these ourselves.
Benefits of investing via peer-to-peer lending with us
Fact is, every type of investment has some sort of risks and rewards associated with it - this includes peer-to-peer lending.
Ideally, an investment should offer you an ample amount of return so you can enjoy your life without worrying about money. The idea is to make money work for you and not the other way round.
Keeping that in mind, let us discuss the advantages of investing via peer-to-peer lending with Southern Cross Partners.
1. Responsible risk mitigation
The biggest risk associated with peer-to-peer lending is the borrower's failure to repay the loan. We mitigate this risk by conducting proper background and credit checks. Not only this, but we use our own funds, in the beginning, to provide the borrowers with a loan.
2. Monthly payments
Unlike so many other investment options, we do not make you wait. You will receive your interest payments every month, with nothing deducted except your tax.
3. Attractive returns
Here at Southern Cross Partners, investment interest rates range from 6.25% – 8.00%* p.a. Compared to other investment options, like savings account, such high and relatively steady return rate is what attracts so many investors to us.
4. Invest in many loans at once
Any successful investor knows to not test the depth of a river with both feet. Investing with us allows you to build a diverse portfolio by investing in multiple loans of your choice.
5. Security
All investments are supported by first charge registered mortgages over properties and on terms that you have personally selected.
When it comes to investing, hasty decisions can prove to be costly. If you still have any questions about peer-to-peer lending or Southern Cross Partners, you are encouraged to contact us.
Want to calculate how much you can earn via peer-to-peer lending? Use our free calculator below.
