A new peer-to-peer lender, LendMe, has been granted a licence by the Financial Markets Authority and is aiming to launch in the next three months.
LendMe founder Mark Kirkland says that LendMe is very excited to receive its peer to peer lending licence from the Financial Markets Authority, commenting:
“Our intention is to become New Zealand’s most trusted P2P lender specialising in secured loans between $25,000 and $2 million. We will deliver transparency, choice and control to kiwis borrowing and lending money in New Zealand.”
The other P2P lender in New Zealand is Harmoney. Earlier this year the platform completed a NZ$10m capital raise and partnered with TradeMe. And last year the platform saw institutional investors commit $100 million of lending capital to the platform.
“We are delighted to join Harmoney in helping disrupt the New Zealand financial services sector. Peer to peer lending is hugely successful overseas and LendMe will provide a viable alternative to traditional financial institutions by connecting people who want to borrow and lend money – kiwis funding kiwis, through a secure and trustworthy platform.”
He added that there is strong demand from institutional investors:
“We are in talks with a number of organisations including banks both here in New Zealand and overseas as potential institutional investors.”
LendMe will offer secured loans for top-up deposits, home purchases, residential investments, commercial property, business growth, new equipment and the rural sector. Loans will be secured against borrowers’ assets, in the majority of cases by first mortgage over property.
“Borrowers who can show a good credit history and ability to service debt but don’t have a deposit and can’t borrow through the traditional banks due to the current LVR restrictions, will be able to borrow 100% through LendMe to purchase a home.”
A key focus for LendMe will be the rural sector, with mortgages on farms and equipment, seasonal lending plus environmental product lending on offer.
Unlike traditional investment opportunities, lenders can expect to receive higher returns on their money and will know exactly where their investment is going. The company will also look to lend to older borrowers who are excluded from borrowing from the banks due to their age.
“Access to money for older people can be very difficult even though they may have an impeccable credit history and good security to offer lenders. LendMe will allow older kiwis to borrow the money they need whilst ensuring lenders receive great returns on well secured loans”.
Join AltFi for its third annual Alternative Income Forum, exploring closed-ended funds (investment trusts) specialising in generating an income using alternative assets such as specialist finance, P2P lending, direct lending, asset leasing and more. Hear from the leading investors and fund managers in this rapidly growing market.