Praised by Forbes and funded by tycoons like Richard Branson, private lending, (also known as peer to peer lending), is rapidly gaining momentum. It’s reimagining the way people borrow and invest, with companies like Zagga using technology, traditional expertise and data to matchmake with wild precision. A fiscal cupid, if you will…
Introducing the 4th way to invest
We’re all familiar with property, shares and savings accounts. But what if there was a fourth way to invest? An option designed to empower everyday people, instead of padding out CEO salaries or augmenting shareholder payouts.
Cue private lending. Simple, fast and secure, Zagga is designed to seamlessly match the risk preferences of registered investors to the credit risk of approved borrowers.
Making your funds work harder
For investors, this has unlocked an exciting new source of fixed income. At its core private lending is all about making funds work harder, with less volatility and higher yields than playing the stock market. P2P loans also offer far more flexibility than conventional bank investments, not to mention low interest rates that run circles around the likes of BNZ, Westpac and other big-name banks. For investors, rather than receiving 3% on your investment, you’ll receive anywhere between 6-10%. This gets even better through Zagga in particular, offering investment security on the borrower’s property, just like a bank.
A matter of can’t, not won’t
Beyond profitability, banks handcuff themselves with strict sets of criteria that create a very narrow window of who’s eligible to borrow. As a team of self-confessed entrepreneurs, we like to think of it this way: Zagga lends to the people banks can’t lend to, not won’t lend to. So, while banks are forced to continually deny loan applications, Zagga can broaden its horizons and look beyond the red tape. Flexible lending criteria and the ability to cater for larger loan sizes means Zagga can help more borrowers, while still offering strong, risk-mitigated returns to investors. It’s this ‘can do’ attitude that will continue to alienate banks from innovative new lending platforms and ensure that it remains an utterly people focussed lending solution.
Power to the people
Until now banks have managed to get away with dictating the lending market. Not only have they set strict guidelines on who they lend to, but they also ensure that most profits stay in house. You’ve got to give it to them for maintaining such a partisan business model for so long. But it’s definitely time for change…
When Peer to Peer lending arrived on the scene this bias model was given a serious run for its money. And yes, we mean literally. Fronted by platforms like Zagga, private investors now have the power and systems at their fingertips to act as the banks do and enjoy the rewards.
For more information on how Zagga can help you move beyond the red tape, make your cash work harder and harness the benefits of private lending, visit https://www.zagga.co.nz/