Since launching Squirrel Money last November, the Secondary Market has always been the most requested and anticipated feature from our investor community and after months of developing and testing, the team is proud to deliver an innovative New Zealand first to market.
You will now have the ability to ‘sell’ an existing investment on the marketplace and access your funds early, should another Investor be willing to match the original terms of your investment (i.e. interest rate, investment amount and remaining term). Simply select the new ‘Sell Investment’ option which can be found on the Investments tab of your Squirrel Money dashboard. For new Investors, you will now be able to both bid against new loans as well as ‘buy’ existing investments that are currently for sale via the secondary market. The 5 year market has attracted 60% of total lending through the Squirrel Money platform to date and offers Investors the best return on their money with an average interest rate of 8.9% p.a. Despite this, we have experienced that Investors were often reluctant to have their funds tied up for 5 years in case of emergency. We hope the launch of the Secondary Market will help encourage more people to invest longer term and take advantage of the great rates on offer.
One...Investors who ‘buy’ an investment through the secondary market continue to receive protection from our reserve fund Loan Shield. Two...Investments can only be sold on a one-to-one basis meaning a new Investor must take over the whole amount of an investment that is being sold. Three...Investments being sold through the Secondary Market are subject to an administration fee of 1% up to a maximum of $50 per investment sold. We are continually looking for ways to improve the Squirrel Money platform and have a few more innovations ready to be released shortly. In the meantime, we hope you are as excited about the launch of the Secondary Market as we are, just don’t all rush to try it out at once…
Read the Secondary Market Rules here.