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By now we’ve made it pretty clear that one of the biggest reasons we love Zagga is that it’s underpinned by a ‘Kiwis funding Kiwis’ model.
But who exactly are these Kiwis we’re talking about? To help you get a better feel for how Zagga could work for you we’ve put together a few case study examples to show how a borrowing situation may look. Thinking of investing? Watch this space because in a matter of days we’ll be posting a follow up blog spotlighting investor success stories.
Jenny runs an Auckland based catering company and sales have been steadily increasing for the past two years. She’s recently moved to bigger premises though it’s put a significant strain on her staff and capacity. To double her capacity and maintain efficiency Jenny needs to buy new ovens and equipment. The combined cost of these new machines is $80,000, though when she inquired about a loan at her local bank they reminded her she only has a $20,000 overdraft facility and is still paying off the final year of a $50,000 loan for the initial investment. Taking this into account the bank is only willing to offer her a loan of just $40,000 at a 14.5% interest rate. This doesn’t cover her financial needs, and is 3% higher than the 11.5% she previously had in place. Cue peer to peer lending. With Zagga’s Business Loan Jenny was able to unlock direct access to investors from all over New Zealand. Secured by her own property and the business assets, she’ll get access to the cash she needs. Compare this with interest rates that won’t cripple her business and she can fuel the growth her business needs.
Golden Years Loan
While banks tend to focus a lot on young entrepreneurs and home buyers there’s a frustrating lack of attention placed on mature borrowers. The arrival of peer to peer lending means retired couples like Jan and Rob now have options. With Zagga’s Golden Years Loan they won’t need to worry about amassing a huge debt courtesy of compound interest. There’s the option of paying interest only which means the amount of the loan remains unchanged throughout. It’s fair, transparent and entirely free from nasty surprises.
Investing in property can be a fantastic way to pad out the retirement fund, but it’s not always simple. Just look at Pam and Dave. They’re a typical Kiwi couple, with Dave about to turn 65 and still planning on working for another 5 years. Pam is retired and currently on a pension, which means there’s not a huge amount of cash coming in. Their savings are modest, with around 30K in the bank. The good news is they own a property worth $700K but still have a $200K loan to pay off. The next 5 years are critical for a couple like this if they want to plan for a happy retirement. A small investment property could help to bolster their upcoming retirement, though most banks would probably shy away from lending them cash secured by refinancing their existing home. This is where Zagga makes a life-changing difference. With competitive interest rates, improved access to credit and speedy loan approvals, Zagga can connect Pam and Dave with New Zealand based investors that can help them purchase a second property and strengthen their retirement pillars.
Ever had the feeling that your brood is too big for its boots. Couples like Kate and Max may find that while their family of four has outgrown their two bedroom home, banks make it impossible to upsize. Zagga’s Bridging Loans break down the barriers and empower couples like Kate and Max with the financial flexibility to cover the time between buying a new house and selling their old one. They won’t have to struggle with double mortgage payments because they can choose to make interest only payments. It’s simple and stress free, which means Kate gets a bigger kitchen, Dave gets a home study and the kids get their own bedrooms.
New Zealand’s economy is heavily intertwined with the farming industry, though many banks fail to recognise the unique quirks that go hand in hand with rural financing. Brent is finding this out the hard way, when he can’t find the cash to invest in new grain but knows that if he can’t plant his crops he won’t have an income. Banks would see him as a risky investor but Zagga knows better. Built exclusively to meet the needs of farmers, Zagga’s Seasonal Loan empowers rural borrowers like Brent with another option for short term finance. The biggest difference is that many of Zagga’s investors are Kiwi born and bred, many of them from rural areas. This means they have a deep understanding of the seasonal nature of farming and are interested in supporting local producers while earning a fair return on their money.
Invest securely. Borrow simply. This is what Zagga is all about, and these example case studies demonstrate just how simple borrowing with Zagga can be.
Zagga has a range of investments available now, with some great opportunities to dip your toe in and earn better returns. Click here to see what’s currently available.
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