tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, April 2nd, 10:34PM

News

rss
Latest Headlines

First year loss not unexpected: LendMe

LendMe boss Marcus Morrison says a $1 million loss in its first financial statements reflects the investment made in getting the platform off the ground.

Wednesday, September 7th 2016, 6:00AM

by Susan Edmunds

The peer-to-peer operator reported a $1.096 million loss for the 2016 year.

It focuses on secured loans of between $25,000 and $2 million.

Morrison said the result reflected LendMe’s start-up costs, including the legal fees for the licence application and the design and construction of the platform's technology.

It launched in February.

But he said because the business relied mostly on technology, and a focus had been placed on building a smart back-end for the platform, it was expected it would be profitable within the next two months.

“That’s quite unusual for a start-up but is reflective of the fact we are relatively conservative as a group and trying to grow in a controlled fashion, with long-term sustainable growth.”

The peer-to-peer sector is watching the Commerce Commission’s case against another platform, Harmoney, closely.

The commission has asked the High Court to clarify how the Credit Contract and Consumer Finance Act applies to its loans.

Morrison said the case would affect LendMe because the fortunes of all peer-to-peer platforms were perceived as interrelated by the public.

But he said, of the $3.5 million LendMe had lent, only one loan of less than $100,000 had been to an individual. The rest had been to companies or trusts.

“They don’t fall into the consumer finance space so the CCCFA doesn’t apply to 99.99% of our transactions.”

LendMe’s lawyers had engaged directly with the Commerce Commission and the fees were structured in a way that met the CCCFA anyway, he said.

Morrison said the development of LendMe was about two months behind where he would want it to be in terms of the speed with which it was getting up and running.

It has declined the vast majority of the $40m in applications made to it because of concerns about the risk involved or the borrowers’ capacity to repay.

Morrison said, because all the money being lent was from retail investors, the platform had to be especially prudent.

Tags: LendMe

« ComCom wants legal claritySquirrel looking for more opportunities »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Advisers 'will drop out'
    “@gavin austin - actually our focus is on getting Advisers to ask their existing customers "What can we do to help you?"...”
    7 hours ago by Andrew Scott GM Newpark
  • Advisers 'will drop out'
    “Interesting comments Andrew. I take it from your comment about Dgs being worth their salt that you've provided your members...”
    9 hours ago by gavin austin adviser business compliance
  • AML flexibility offered
    “AML flexibility is great and well received. What are the law society and the JP organisation doing to find ways to reduce...”
    11 hours ago by Tony Walker
  • Advisers 'will drop out'
    “@Fred Dodds - with respect, focusing on your Level 5 qualification, or for that matter your transitional FAP licence, is...”
    13 hours ago by Andrew Scott GM Newpark
  • Covid withdrawals possible 'but not always desirable'
    “Very few of us have any idea what facing homelessness and potentially starvation (literally and figuratively) is like. As...”
    13 hours ago by Chris Hardcastle
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 ▼2.95 ▼3.09 ▼3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.94 4.08 4.39
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 ▼4.09 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - ▼3.09 ▼3.39 ▼3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
Lender Flt 1yr 2yr 3yr
TSB Bank 5.34 ▼3.89 ▼4.15 ▼4.49
TSB Special 4.54 ▼3.09 ▼3.35 ▼3.69
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.60 3.65 3.89 3.99

Last updated: 31 March 2020 8:55am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com