Service Disclosure Statement

We are licensed by the Financial Markets Authority to provide peer-to-peer lending services in New Zealand.

We are registered on the FSPR in accordance with the requirements of the Financial Service Providers (Registration and Dispute Resolution) Act 2008 to provide peer-to-peer lending services.

GLG Trustees Limited (Trustee) is the Platform’s lender of record (as a bare trustee). The Trustee is registered on the FSPR to provide credit under a credit contract and to provide a client money or property service.

Our Platform matches Borrowers seeking finance with Investors who can fund them.

Investors may use the Platform to subscribe for or purchase interests in Loans listed on the Platform (including Loans listed on the Secondary Market). When subscribing for or purchasing interests in a Loan on the Platform, your interest in the Loan will be held on bare trust by the Trustee for you and other participating Investors in that Loan. The Trustee agrees to enter into the Loan (as the lender on record) and hold all amounts received under or in respect of a Loan on bare trust for the benefit of all participating Investors.

Investors appoint us as agent in relation to the following:

• entering into agreements on the Trustee’s behalf in relation to the use of the Platform by Investors and Borrowers;
• entering into Loan Documents with Borrowers and any Guarantors on the Trustee’s behalf;
• opening and administering the Investor Call Account and the Clearing Account;
• administering the Priority Arrangements agreed between the Investors on the Trustee’s behalf;
• transferring funds and otherwise settling all Loans in accordance with the Loan Documents;
• administering Loans including by collection and enforcement in relation to the Loans and any security or guarantee provided in respect of the Loans;
• transferring any funds to Investors which are or may become payable from time to time;
• performing all or any of the other functions or obligations of the Trustee relating to the Loans.

Further details regarding our Platform are set out in the following documents which are available on the Platform:

• The General Terms and Conditions;
• The Investor Agreement;
• The Borrower Agreement;
• The Secondary Market Rules;
• The Fair Dealing Policy;
• Example of our Loan Documents.

To be accepted as an Investor on the Platform, you must apply to register with us, and comply with the conditions we specify. These conditions include:

• for an individual, being located in New Zealand, unless we otherwise agree;
• for a body corporate, being incorporated or constituted in New Zealand or otherwise having a place of business in New Zealand, unless we otherwise agree;
• for an individual, being 18 years of age or older at the time you submit your application;
• having a New Zealand bank account;
• submitting  a  fully  completed  Investor  Application  Form,  and  providing  us  with  any  other information we may ask for subsequently;
• completing  our  verification  processes  in  relation  to  your  identity  and  relevant  personal information (this may include the identity and personal information of other persons) to our satisfaction, enabling us to comply with anti-money laundering law as well as law relating to tax matters;
• not carrying on the business of being a creditor under a credit contract (as defined in the CCCFA), unless registered to do so on the FSPR; and
• meeting any other requirements we notify to you from time to time.

To  be  accepted  as  a  Borrower,  you  must  comply  with  the  conditions  we  specify.  These conditions include:

• for an individual, being located in New Zealand, unless we otherwise agree;
• for a body corporate, being incorporated or constituted in New Zealand or have a place of business in New Zealand, unless we otherwise agree;
• for an individual, being 18 years of age or older at the time you submit your application;
• having a New Zealand bank account;
• submitting  a  fully  completed  Borrower  Application  Form,  and  providing  us  with  any  other information we may ask for;
• successfully  passing  all  required  credit  checks  and  assessments,  demonstrating  a  credit score that meets our criteria;
• completing  our  verification  processes  in  relation  to  your  identity  and  relevant  personal information (this may include the identity and personal information of other persons) to our satisfaction, enabling us to comply with anti-money laundering law as well as law relating to tax matters; and
• meeting any other requirements we notify to you from time to time.

When you have submitted a Loan Proposal, we will review and, in our sole discretion, decide whether to approve the Loan Proposal for listing on the Platform (subject to you meeting the conditions above). Once we have accepted a Loan Proposal, we will provide you or your authorised representative with a Letter of Offer setting out information about the approval, the associated terms, and other relevant documents.

In  addition,  all  Borrowers  (once  the  Loan  has  been  approved)  are  required  to  appoint  an independent solicitor who will:

• independently  advise  the  Borrower  on  the  Loan  including  explaining  the  Loan  terms,  the Borrower’s rights and obligations and the nature of the security being provided;
• assist in registering the security;
• ensure all documentation is fully completed and signed; and
• facilitate the exchange of funds and settlement of the Loan.

Guarantors (if any) are also required to appoint an independent solicitor who will undertake the same role as for the Borrowers, above.

Loans will be offered to Investors directly through the Platform (a Primary Market Loan). We also operate a Secondary Market through which Investors, if approved by us, may sell their interests in Loans on the Platform (a Secondary Market Loan). See the Secondary Market Rules on how the Secondary Market will operate.

Investors have the option to subscribe for or purchase interests in any Loans that are listed on the Platform by submitting an Investment Commitment (non-Auto Invest). An Investment Commitment can also be designated as recurring (known as Auto Invest). If you have opted for Auto Invest, a new Investment Commitment will automatically be created on your behalf by the Platform, to be matched with Loans that meet the Acceptable Criteria, provided that your Investor Call Account has sufficient balance to meet the relevant investment amount.

Your Investment Commitment remains binding unless validly withdrawn before:

• it has been matched with a Loan; or
• the full value of the selected Loan has been fully subscribed or purchased.

Once an Investment Commitment is accepted or created, it will be matched with eligible Loans in the following order of priority:

• First,  Investment  Commitments  under  Auto  Invest  will  have  priority  over  other  Investment Commitments under non-Auto Invest, and we will allocate between them on such basis as appears fair and reasonable to us.
• Secondly, if a Loan is not filled or fully filled by Auto Invest Investment Commitments under the  paragraph  above,  Investment  Commitments  (under  non-Auto  Invest)  submitted  or created  earliest  in  time  will  be  given  priority  over  Investment  Commitments  submitted  or created later.

Investment Commitments will be matched until the full value of the Loan is met. If the remaining value of the Loan is less than the value of the Investment Commitment, the Investment Commitment will be filled up to the full value of the Loan. We will notify you via the Platform and via email if your Investment Commitment has been matched to a Loan.

The Platform will display the following information about each Loan offered:

• terms of the Loan (including amount, drawdown and maturity dates, and loan interest rate);
• terms of the investment in the Loan (including minimum investment amount, total amount available for investment, and the investment interest rate);
• a  description  of  the  security  including  valuation  details  (but  without  disclosing  personal information about the Borrower);
• other Loan information (including the Borrower’s credit score, the Loan purpose, the loan to value ratio and a statement of how the Loan is serviced);
• confirmation  of  whether  the  Loan  is  a  Secondary  Market  Loan  (including  a  link  to  our Secondary Market Rules (if applicable));
• any other information that we consider should be disclosed.

We use a Credit Assessment Scoring (CAS), a scoring system used by our internal credit team to assess the level of risk associated with a Loan and determining, among other things, the appropriate interest rate for the Loan. We will disclose the CAS to Investors.

We will establish an Investor Call Account for each Investor. Each Investor Call Account will be held on separate bare trust by the Trustee for each Investor. The Investor Call Account will be used to receive and hold the funds required to fulfil the Investment Commitments you made. All funds in the Investor Call Account will be managed in accordance with the Investor Agreement.

Interest received on any funds held on your behalf in the Investor Call Account will either be paid to us as a fee for our services or a portion of it will be offered to you, at the rate published on our website. Rates are subject to change at any time at our discretion. This interest is not paid or guaranteed by us but is a portion of the interest earned on the balances in the Investor Call Account, which is held on bare trust for you by the Trustee. The underlying interest is payable by the registered bank or banks with whom the Investor Call Account is held.

You must ensure that you have sufficient funds in your Investor Call Account to meet the amounts specified in your Investment Commitment. If an Investment Commitment is designated as Auto Invest, a new Investment Commitment will automatically be created on your behalf by the Platform, provided your Investor Call Account has sufficient balance for the relevant investment amount. You authorise us and the Trustee to transfer up to the value of your Investment Commitment from the balance in your Investor Call Account to the Borrower or selling Investor (as applicable) via the Clearing Account and to otherwise take such steps as are necessary to settle the Loan under the terms of the Loan Documents.

If there is a shortfall in your Investor Call Account, the shortfall may be funded by us or a Related Party. Should the Loan remain undrawn for one week after the proposed settlement date, your funds will remain in your Invest Call Account as unallocated.

You can make withdrawals from your Investor Call Account at any time. We will pay any cleared funds held on your behalf in your Investor Call Account, which are not required for any outstanding Investment Commitments, to your Nominated Account (to the extent that the full withdrawal request can be satisfied). Withdrawal requests will normally be processed within 24 hours of your request but may take up to 48 hours to reach your Nominated Account.

To apply for a Loan, a Borrower must provide us with:

• a synopsis of your Loan Proposal including a brief background about your financial situation, Loan amount requested, and details of how the Loan is to be repaid and of the security being offered;
• servicing information (i.e., where does the income come from and how much is it);
• a fully completed statement of financial position, including assets and liabilities;
• a fully completed monthly budget;
• details of any property being offered for security;
• signed authority for us to undertake appropriate enquires and credit checks;
• any other information we request in relation to you or your Loan Proposal; and
• if you are proposing any Guarantors, then the above information must be provided for each proposed Guarantor

This information will allow us to make an initial assessment of the Loan Proposal, and we will respond by requesting further information or by providing a Letter of Offer.

Our Loan application committee will consider:

• the Loan amount requested;
• the nature and location of the security property;
• the Loan-to-Value Ratio (LVR);
• the Borrower’s exit strategy for repaying the Loan (strategies may include refinancing to a bank or sale of the security property or other acceptable strategy);
• the pricing of the Loan;
• the Borrower’s ability to service the Loan (if applicable); and
• whether the income information provided can be or needs to be verified and whether bank statements need to be reviewed.

We check all financial information provided by potential Borrowers for reasonableness and the applicant’s ability to service the Loan.

We check all security property information provided using online data and property valuation records. We also use external valuation advice from real estate professionals or registered valuers, as appropriate. In all cases, we require documentation to support the valuation of the security property, which may include any of the following:

• a sale and purchase agreement;
• government valuation records;
• online valuation appraisals;
• real estate professional appraisals; and
• a registered valuation.

In  addition  to  the  requirements  set  out  above,  the  following  checks  are  conducted  on  all Borrowers  and  Guarantors  and  if  the  Borrower  or  Guarantor  is  a  trust  or  a  company,  on  the trustees or directors of the Borrower or Guarantor:

• identity check to enable us to comply with anti-money laundering law as well as law relating to tax matters;
• credit check to ensure that they have credit history acceptable to us.

For Secondary Market Loans, we will re-assess the Loan if the performance of the Loan has not been satisfactory, or we have reason to believe that the financial position of the Borrower or the value of the security property has materially adversely changed. In this case, we will re-assess the Loan to ensure all information on the Loan is current considering any other information that may have come to hand. This reassessment may involve obtaining a new credit check, undertaking new servicing checks, retesting the Borrower’s Loan exit strategy or any such evaluations that we consider are appropriate in the circumstances. However, we may not re-assess the Loan if it is not in default, and we have no reason to believe that the financial position of the Borrower or the value of the secured property has materially adversely changed. Therefore, there may be certain information affecting the Borrower's creditworthiness since the Loan was originated, that is unknown to us or the Investors. See our Secondary Market Rules for more information.

We will generally require all Loans to be secured. The security provided by the Borrower will be held by the Trustee (on bare trust) in accordance with the Loan Documents and the Borrower Terms. We require Borrowers to provide security in relation to a Loan subject to requirements notified by us from time to time. When a Borrower provides security, it will be held by the Trustee in accordance with the terms of the Loan Documents, the Security Documents, and any Priority Arrangements.

If security is provided by a person other than the Borrower, we will require that person to provide a guarantee of the Loan. Where we require a guarantee, Borrowers must ensure that each Guarantor signs the Loan Documents and provides us with all information we require in relation to the Loan, the Guarantors, and the guarantee. We may also agree with a Borrower that a guarantee is to be provided in other circumstances.

We will disclose to Investors whether security has been provided in relation to the Loan before it is entered into. This disclosure will include any Priority Arrangements.

We have a system in place to keep track of Loan repayments and any arrears. This includes daily monitoring of Loan arrears.

When a Borrower has fully or partially missed a payment under Loan, we will contact the Borrower to secure their commitment to remedy the default either by catching up with the missed payment or making a commitment to make the payment at a future agreed date.

If we do not reach an agreement with the Borrower or they do not honour their commitment, further contact is initiated, and the consequences of non-payment are clearly explained. If appropriate, we also advise the Borrower of their rights if they are facing hardship.

When a Loan is in default and no acceptable outcome is achieved, we may in our sole discretion, take one or more of the following actions:

• We may purchase all Investors’ interests in the defaulting Loan.
• We  may  commence  enforcement  action,  including  sale  of  the  security  property  through enforcement of the Security Documents.
• We may continue to make investment interest payments to the Investors until such time we deem appropriate.

Where applicable, proceeds from enforcement of the Security Documents will be distributed to Investors in accordance with any Priority Arrangements, as set out in the Priority Arrangements section of the General Terms & Conditions.

If, after the sale of the security property or repayment of a Loan, there is a shortfall in any payment to you, we will pursue the Borrower for the shortfall where we consider there is a reasonable expectation of a material recovery (after costs) at our sole discretion. Any payments received (less any expenses incurred) will be paid to you and other Investors, in proportion to your interest in the Loan, subject to any Priority Arrangements.

Unless specified otherwise, investors are not included in this enforcement process. Investors authorise us to administer the Loans (and to instruct the Trustee on their behalf) in our sole discretion including enforcement actions and Investors are not entitled to influence the process.

The following is a summary of the fees payable by Investors at the date of this document.  Full details of these fees are available on our Platform.

Any request received by us for a Secondary Market sale by an Investor (other than an Initial Investor) will incur an administration fee, in the amount disclosed on our website, to cover our administration costs. This cost is payable by the Investor irrespective of the success or otherwise of the sale, and irrespective of whether the Loan is offered on the Secondary Market or not.

We may change the fees payable by Investors by providing notice of the amendments on the Platform. Any amendments we make to the fees payable by Investors will only apply in relation to new Loans they list on the Secondary Market following the date which the amendments are made.

The following is a summary of the fees payable by Borrowers at the date of this document. Full details of the fees payable by Borrowers are disclosed in the Letter of Offer and Loan Documents and are available on our Platform.

Borrowers are required to pay a Loan application fee which is determined at the time of application.

Other fees that may be payable by a Borrower include: Monthly Loan administration fees, missed/late/dishonoured Loan payment fees, and early repayment fees.

We  may  alter  the  fees  payable  by  Borrowers  by  providing  notice  of  the  amendments  on  the Platform. Any amendments we make to the fees payable by Borrowers will only apply in relation to new Loans entered into following the date which the amendments are made.

We do not use the Platform as a Borrower. In some circumstances, Loan advances may be initially funded by us (or a Related Party) as the Initial Investor. The interest in the resulting Initial Investor Loans (wholly or partially) may then be made available to Investors through the Secondary Market. There may also be circumstances where an Investor wishes to sell their interest in a Loan. In these circumstances, we may allow the Investor to offer interests in that Loan to other Investors on the Secondary Market at our discretion. We may also use the Secondary Market to sell our interests in Initial Investor Loans (i.e., Loans that have been prefunded by us or a Related Party as Initial Investor).

We may purchase interests in a Loan offered by an Investor. This will generally be done to provide immediate liquidity for the selling Investor. We will then, as soon as practicable, re-offer the interest in that Loan to Investors on the Secondary Market as a Secondary Market Loan, unless we consider the Loan is not suitable for sale to Investors on the Secondary Market, in which case we may continue to hold the interest in the Loan.

Except as disclosed in this document, if we are an Investor in a Loan, we will be subject to the same rules, obligations, and requirements as all other Investors in relation to the use of the Platform.

Other Related Parties are also permitted to invest through the Platform and will be subject to the same rules, obligations, and requirements as all other Investors in relation to the use of the Platform.

Where we are an Initial Investor in a Loan, we will be paid interest at the full documented Loan rate of interest, i.e., there will be no margin deducted by us in respect of our interest in the Loan.

All Initial Investor Loans offered on the Secondary Market will be offered to Investors at a notional interest rate (rate of return) determined by us, which will generally be the contracted Loan rate less a margin which is retained by us as a fee. Both interest rates (and the deducted margin) will be disclosed to Investors.

Interests in Loans being offered by Investors (other than Initial Investors) will be offered on the Secondary Market on the same terms and at the interest rate as those enjoyed by the selling Investor. Therefore, all interests in Loans traded on the Secondary Market will have the same face value, terms and conditions and pricing as the current Loan being sold by the selling Investor. The only exception to this is if the terms of the Loan have been renegotiated, which will be disclosed to Investors.

We have a Conflicts of Interest Policy in place to ensure that we, and our Related Parties, comply with the requirements set out above.

We do not currently hold any interests which may materially adversely impact on our ability to have fair, orderly, and transparent systems and procedures for providing the peer-to-peer lending service through the Platform.

Upon request we will provide Investors with a record of details of all investments including:

• amounts invested;
• rate of return;
• interest received;
• dates of all transactions; and  
• security given in relation to the Loans.

We will also provide Investors with the above information within 5 working days after the Investor invests in a Loan, or otherwise as required under the FMCA.

The transaction information will also be provided to Investors upon request. Requests can be made by contacting us at our contact details below.

Go Lend Limited
34 Greenpark Road
Penrose
Auckland 1061
Phone: (09) 582 1777
Email: accounts@golend.co.nz

If you have a query or wish to complain, please contact us at the details set out above.

See our Complaints Policy on our Platform.

As registered financial service providers, we and the Trustee are each a member of an approved dispute resolution scheme to which you can direct any complaint. The contact details for the scheme are:

Financial Services Complaints Limited
PO Box 5967
Wellington 6140
Website: fscl.org.nz

You may contact us at any time to obtain further information or to request an electronic copy of any documentation applicable to your investments or to the borrowing process free of charge. Further information is also available on the Platform.