What is a Wholesale Investment?
Southern Cross Partners provides mortgage lending under the regulations that govern peer-to-peer lending in New Zealand. These regulations restrict the amount that can be borrowed by any entity to $2M in any 12-month period.
As part of our normal business activity, we are often presented with lending opportunities more than $2M and under current legislation we have been unable to fund these through the peer-to-peer platform.
These loans are provided via our sister company Southern Cross Finance Limited to investors outside of the peer-to-peer framework, and only available to those who qualify as wholesale investors.
Typically, loans offered in this manner will be larger loans (requiring a larger investment) and they will generally have more complex securities attached to them, as opposed to a simple residential property.
Because the sums are larger and the securities more complex, we can offer a higher interest rate to our wholesale investors.
Find out more about wholesale investing here.