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October 30, 2019

Introducing Peer to peer factoring fund: A $500K opportunity for private investors

Traditional business lending provides new venture opportunity for private investors seeking better returns on their savings

 

New Zealanders work hard, with most retirees owning their own mortgage-free home. Though according to the latest statistics, savings and income from private assets lasts for less than a decade after retirement, meaning most seniors find themselves living primarily off the New Zealand Superannuation pension. And let’s face it, the married rate of $633 a week doesn’t necessarily cut it.

 

Introducing Peer to peer factoring fund

Zagga, a NZ-based peer-to-peer lending platform, believes that savings should work just as hard as the Kiwis who earned them. That’s why the company developed the factoring fund in collaboration with local lending solutions provider, Lock Finance.

 

Geared towards private investors, the new venture offers a $500K opportunity to invest in a managed fund of factored receivables, aka invoice finance-based loans. With the option of investing the full half a million or a smaller portion, the fund offers a flexible investment opportunity to investors of all calibres. Key benefits include healthy returns on hard-earned retirement savings, with a buffer provided against first risk exposure.

 

Invoice Finance: 101

Invoice finance, also known as factoring, is a financial concept hundreds of years in the making. Cash flow is key in any business, though with some large companies delaying invoice payments for up to two months, small businesses are often left high and dry. Invoice financing helps enterprises with limited capital mitigate the risk of late payments and long payment terms. Basically, it provides a buffer that keeps cash flows healthy, without resorting to loans or relying on capital that isn’t there.

 

A new era of investment

Until now, everyday investors haven’t had the opportunity to harness the benefits of invoice finance lending, instead limited by banks and traditional finance companies. As a company dedicated to reimagining the way New Zealanders invest and borrow money, Zagga has teamed up with Lock Finance to create an exciting new opportunity that harnesses the earning power of invoice finance investments.

 

How the factoring fund can make your savings work harder

  • Investors earn a 6.5% return over a 12-month term.
  • Interest paid monthly and deposited into nominated accounts
  • High returns that outperform traditional high interest savings accounts
  • A great way to diversify investment portfolios
  • A risk mitigated investment that appeals to retirees

Risk mitigated investments for hardworking Kiwis

For investors nearing the end of their financial journeys and looking towards retirement, risk mitigation is key. With the factoring fund, Zagga has worked hard to mitigate risks and create an investment opportunity that’s safe and retirement friendly.

  • All credit checks and due diligence on the businesses who borrow, as well as their debtors is completed for peace of mind
  • Monthly performance updates are provided to investors
  • Investments backed by Lock Finance, a New Zealand owned company with more than 130 years of experience in providing working capital for businesses
  • Lock Finance takes the first 20% of risk, and with borrowers only able to borrow a maximum of 80% total against an invoice, the maximum risk to investors is 60% (LVR), usually less based on past performance.

Supporting New Zealand businesses

Not only does the fund offer a solid investment opportunity with high returns, it also presents a unique chance to support local businesses, aka the heart and soul of the New Zealand economy.

Want to know more? Get in touch with the Zagga or download our Factoring Overview brochure to discuss how you can get involved with the factoring fund and make your savings work harder.

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