P2P lender Squirrel Money is the first to launch secondary market for investors in NZ

P2P lender Squirrel Money is the first to launch secondary market for investors in NZ

- in All News, Crowdfunding
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Peer-to-peer lender Squirrel Money announced on Thursday it is launching secondary market next week, which will allow loans to be on-sold to other investors. The Squirrel offer will be the first P2P secondary market available in New Zealand.

In fact, the new service will allow loans to be on-sold by those investors who wish to get their money out before the loan term is up. If, for example, someone invests in a five-year loan, he will now be able to “sell” the investment on the marketplace and access his funds before the 5-year term expires. Of course, this will be possible only if another investor is willing to match the original terms of his investment, such as interest rate, investment amount and remaining term.

Squirrel Money’s Managing director John Bolton revealed that such services were often requested by Squirrel`s clients since the P2P platform was launched in November.

So Squirrel Money expects that the launch of the secondary market will encourage more people to make long-term investments. New investors, on the other hand, will be able to both bid against new loans as well as ‘buy’ existing investments that are currently on sale through the secondary market. Furthermore, Investors who ‘buy’ an investment through the secondary market continue to receive protection from Squirrel’s reserve fund, called Loan Shield.

Keep in mind, however, that Investments being sold through the Secondary Market are subject to an administration fee of 1% (up to a maximum of $50) per investment sold.

Squirrel Money has so far lent $225,899 in loans. Earlier this year, the company raised $3,424,400 through its crowdfunding campaign on Snowball Effect – NZ’s leading equity crowdfunding platform.

Squirrel article

Squirrel Money Limited is part of the Squirrel Group, which also provides mortgage brokerage services. is licensed to provide a peer to peer lending services by the NZ Financial Markets Authority.

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