PledgeMe

PledgeMe have received a license to offer P2P, they say around the end of may before it is live.

http://blog.pledgeme.co.nz/license-to-lend/

There is a PDF at the bottom with a bit more info, whether it takes off or not is another matter, suggested rates for investors seem low compared to everyone else in the market (but they are only suggested rates), fee's for investors are 1% (of what exactly I don't know), appears they will only be doing business loans, secured and unsecured up to $2m.

Who would make an unsecured $2m loan?

Not sure you can go $2m unsecured, I only briefly read the info sheet. There might be a smaller limit on unsecured.

I wonder what systems in place to protect the investor. Will PledgeMe do credit checks? Will PledgeMe actively chase up missed repayments? What happens if someone defaults?

I also wonder if we can trust the borrower to set a rate that reflects the amount of risk.

The fees for the borrowing entity seem quite high, 4% of amount borrowed, in addition you have to go through the whole pitching and campaigning crap.

PledgeMe's first loan is up: https://www.pledgeme.co.nz/loans/5-e...ch-lunch-bonds

Quote:

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Originally Posted by Kelvin

I wonder what systems in place to protect the investor. Will PledgeMe do credit checks? Will PledgeMe actively chase up missed repayments? What happens if someone defaults?

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FYI it says at the bottom: "We have completed a Veda check on the company and their directors, as well as a Google check. There were no adverse findings."

Probably nobody.