It had a 50% growth in its loan book over the last year
It seems P2P lender Southern Cross Partners’ loan opportunities became a massive hit as investors keep snapping up the offerings within minutes of posting.
Cliff Carr, chief executive officer at Southern Cross Partners, revealed that they had a 50% growth in their loan book over the last year.
“There is no shortage of investors eager to participate,” Carr said. “Loans put on the investor platform are sold within minutes. Even a multi-million-dollar loan can quickly sell as investors are continuously looking for a better return on their funds than what’s on offer from mainstream banks.”
“This highlights the confidence that Kiwi investors have in seeking alternative ways of investing, including peer-to-peer with Southern Cross Partners.”
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Carr claims that their P2P opportunities demonstrate where the future of P2P potentially lies, with Southern Cross Partners being the only P2P lender in the country that offers investments supported by first mortgages over land and property.
“Kiwis are naturally familiar with property investment, and there’s much comfort in our investment model,” he said.
“[Our investors told us] that due to several factors in the market, such as softening interest rates (in terms of deposits), people are looking elsewhere for returns. Banks' rates offered to those with money to save have been steadily diluted to the point where it's challenging to find a return starting with a three.”
