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  1. #1
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    Sep 2009
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    Default Zagga P2P [formerly LendMe P2P]

    One of several looking to register
    http://www.interest.co.nz/rural-news...pected-shortly
    Last edited by STMOD; 19-07-2017 at 12:47 PM. Reason: company name change

  2. #2
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    Nov 2015
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    209

    Default

    Will be interesting to hear about others experience registering with this new P2P

  3. #3
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    Feb 2015
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    Quote Originally Posted by Darchie View Post
    Will be interesting to hear about others experience registering with this new P2P
    I have registered am looking at whats on the market - which so far has only been 1 x residential property purchase loan at 8.29% - On a 5 year term with interest only repayments.

    For me harmoney works well because I can invest small amounts over lots of loans ($25 minimum)
    Squirrel Money has potential because while it has a $500 Minimum and it has loan shield
    Lendme however has $1000 minimum and nothing like loan shield - So im not sure ill be able to make it work for me

    The 3 companies have also taken very different approaches in what they disclose about the borrowers to investors

    Harmoney - borrower demographics, loan amount, repayments, income, location, credit grade.
    Squirrel Money - for all intensive purposes nothing is disclosed - just secured/unsecured
    Lendme - Everything is disclosed the current loan has full name, address, several months bank statements, full credit checks on both borrowers, full list of other assets, copy of property sale & purchase agreement

  4. #4
    Banned
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    Dec 2015
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    13

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    Quote Originally Posted by humvee View Post
    I have registered am looking at whats on the market - which so far has only been 1 x residential property purchase loan at 8.29% - On a 5 year term with interest only repayments.

    For me harmoney works well because I can invest small amounts over lots of loans ($25 minimum)
    Squirrel Money has potential because while it has a $500 Minimum and it has loan shield
    Lendme however has $1000 minimum and nothing like loan shield - So im not sure ill be able to make it work for me

    The 3 companies have also taken very different approaches in what they disclose about the borrowers to investors

    Harmoney - borrower demographics, loan amount, repayments, income, location, credit grade.
    Squirrel Money - for all intensive purposes nothing is disclosed - just secured/unsecured
    Lendme - Everything is disclosed the current loan has full name, address, several months bank statements, full credit checks on both borrowers, full list of other assets, copy of property sale & purchase agreement
    Harmoney - I invest only a v small amount but with the amount of neg publicity and the terrible investor dashboard, I'm going off them. Plus it's unsecured, which I'll expand on below.
    Squirrel - I couldn't get the user verification process to work. Tried a number of times holding my license to the web cam, then scanned it and tried uploading that way - but even then it didn't work. Plus choosing the return rate seems too involved for me.
    LendMe - the 'buy in' is more significant however it's totally secured lending and feels a bit more grown up than something like Harmoney which feels like GE finance dressed up as p2p.

    LendMe provides three levels of disclosure that Lenders can see:

    1. Disclosure - Borrowers’ names are disclosed to registered lenders.
    2. Partial disclosure - All supporting loan documents are released to registered lenders, but borrowers’ names, addresses and contact details are removed.
    3. Anonymous - Borrowers’ names are not disclosed and no supporting loan documents are released to registered lenders. Registered lenders receive instead a basic loan summary.


    Ref: LendMe FAQ

    "Will lenders see my personal information?"

  5. #5
    Junior Member
    Join Date
    Feb 2016
    Location
    Auckland, NZ
    Posts
    12

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    Quote Originally Posted by humvee View Post
    I have registered am looking at whats on the market - which so far has only been 1 x residential property purchase loan at 8.29% - On a 5 year term with interest only repayments.

    For me harmoney works well because I can invest small amounts over lots of loans ($25 minimum)
    Squirrel Money has potential because while it has a $500 Minimum and it has loan shield
    Lendme however has $1000 minimum and nothing like loan shield - So im not sure ill be able to make it work for me

    The 3 companies have also taken very different approaches in what they disclose about the borrowers to investors

    Harmoney - borrower demographics, loan amount, repayments, income, location, credit grade.
    Squirrel Money - for all intensive purposes nothing is disclosed - just secured/unsecured
    Lendme - Everything is disclosed the current loan has full name, address, several months bank statements, full credit checks on both borrowers, full list of other assets, copy of property sale & purchase agreement
    Hi Humvee, we don’t offer Loan Shield type protection for investors because LendMe is different. We're the only peer to peer lender specialising in secured lending, with the majority of our loans secured by a 1st mortgage over a property.

    We thought carefully about the minimum a lender can invest through LendMe and the feedback from investors was that anything smaller than $1,000 is just too much admin for the lender. Given the nature of the security for each loan, our investors have confidence to lend in larger increments. In addition to the loan security, requests for loans may be for as much as $2m. Quite a different model compared to funding smaller unsecured loans, where, in order to manage risk, I would absolutely see the need for smaller fractionalised investments across a large number of loans.

    Just to clarify how we handle the issue of Disclosure at LendMe. We don’t require full disclosure for all loan applications, but provide borrowers with three options. See below.

    1. Disclosure
    Borrowers’ names are disclosed to registered lenders. All supporting loan documents are released to registered lenders, but borrowers’ addresses and contact details are removed. Borrowers who select disclosure are more likely to attract lenders and receive a lower interest rate.

    2. Partial disclosure
    Borrowers’ names are not disclosed to registered lenders. All supporting loan documents are released to registered lenders, but borrowers’ names, addresses and contact details are removed. Borrowers who select partial disclosure are less likely to attract lenders and incur an additional 0.5% on their interest rate.

    3. Anonymous
    Borrowers’ names are not disclosed and no supporting loan documents are released to registered lenders. Registered lenders receive instead a basic loan summary. Borrowers who select anonymous are much less likely to attract lenders and incur an additional 1.0% on their interest rate.

    Please note that borrowers’ contact details, including telephone numbers, email addresses, and place of work are never released to lenders. Where we do note an address, this is the address of the security, as this is material for a lender considering funding a loan.

    MM
    Last edited by Marcus@LendMe; 29-02-2016 at 02:03 PM. Reason: formatting

  6. #6
    Peer
    Join Date
    Jan 2016
    Location
    Christchurch
    Posts
    62

    Default

    Hi Marcus,

    So LendMe (like squirrel) is aimed more at the professional investor than your average Mum and Dad investor who has a few hundred a month to invest?

    I don't know many people who just have thousand (or $500) dollar chunks of cash lying around they could invest at will, whereas with the likes of Harmoney people can throw in excess cash and get a good return on it.

    For me that is attractive, it means I can start to build a P2P portfolio on excess cash each month.

    I guess what I am getting at is LendMe is not really suited to the average small investor, and in my mind that is going to be a very limiting factor for LendMe (and squirrel). I would love to hear your (and others) thoughts on this.

  7. #7
    Junior Member
    Join Date
    Feb 2016
    Location
    Auckland, NZ
    Posts
    12

    Default

    Quote Originally Posted by Knot View Post
    Hi Marcus,

    So LendMe (like squirrel) is aimed more at the professional investor than your average Mum and Dad investor who has a few hundred a month to invest?

    I don't know many people who just have thousand (or $500) dollar chunks of cash lying around they could invest at will, whereas with the likes of Harmoney people can throw in excess cash and get a good return on it.

    For me that is attractive, it means I can start to build a P2P portfolio on excess cash each month.

    I guess what I am getting at is LendMe is not really suited to the average small investor, and in my mind that is going to be a very limiting factor for LendMe (and squirrel). I would love to hear your (and others) thoughts on this.
    Hi Knot,

    Cheers for the question, it’s a good one and really speaks to our chore philosophy as a peer to peer lender, and the reason we are specialising in genuine secured lending.

    Before the FMA opened the market up to peer to peer lending, there were very few options for investors (particularly Mum’s and Dad’s) to confidently manage their own investments and get a fair, safe, return.

    There was a lack of information to help new investors get into the market and most investments by their nature are highly risky. Clearly very daunting for most, so as a result a large number of kiwis have had their savings (if they have been able to save any) parked on deposit with the banks earning lower rates. Those who had a higher risk tolerance/appetite may have had a mix of deposits and shares, but often invested in those companies they knew something about or had been recommended to invest into.

    Peer to peer lending in NZ is obviously still in its infancy, but people are learning quickly that the money they’ve kept in the bank can be lent securely and receive much better returns by using LendMe. Investing $1,000 dollars at a time may appear daunting to a Mum and Dad investor right now, but we think the more they learn about how we operate the more confident they will become. The types of loans they can invest in through us (usually secured by 1st mortgage), and the rigour we put into assessing borrowers’ willingness and ability to repay their debt, enable even Mum’s and Dad’s to invest larger sums (in multiples of at least $1,000) in single loans rather than fractionalising below that to spread their risk.

    To date, we have had each of our loans (totalling almost $1.5m) funded by single investors. They have been so confident in the nature of the security for these loans that they have chosen not to fractionalise their lending at all. These have all been Mum and Dad investors. While this has meant that some potential investors willing to lend $1,000 have missed out on these deals, we are still in our soft launch phase and as the number of loans coming through the site increases over the coming months, I expect that more investors will have a chance to co-fund a greater range of loans.

    I hope this has answered your question. Over the coming months, continue to look at the types of loans we have listed and particularly the nature of the security behind each of these opportunities. I believe you will see that you can gain great returns from your LendMe investment without having to fractionalise to the same extent as elsewhere.

  8. #8
    Junior Member
    Join Date
    Feb 2016
    Location
    Auckland, NZ
    Posts
    12

    Default

    Quote Originally Posted by humvee View Post
    I have registered am looking at whats on the market - which so far has only been 1 x residential property purchase loan at 8.29% - On a 5 year term with interest only repayments.
    Hi Humvee, a quick update, we now have five loans on the website. The loan terms range from 1 - 4 year.

    Cheers

    MM

  9. #9
    Junior Member
    Join Date
    Jan 2015
    Posts
    29

    Default

    Wow on what lendme disclose!

  10. #10
    Member
    Join Date
    Feb 2015
    Posts
    309

    Default

    Comcom examines LendMe fees

    Peer-to-peer lender LendMe has been contacted by the Commerce Commission, with questions over the fee it charges its borrowers.


    http://www.goodreturns.co.nz/article...nder+question+

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