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The investing nitty gritty


The investing nitty gritty

An alternative asset class for wholesale investors

As a wholesale investor, you can invest in an alternative, higher-yield asset class through our marketplace. You retain absolute choice and control by investing only in loans that provide the level of risk and return which you believe may assist you to meet your investment objectives.

All loans are secured by a registered mortgage over real property and, are written in the name of the Zagga Investments Pty Limited as trustee for Zagga Investments Lending Trust. This Trust has been specifically established to issue loans, hold securities and disburse funds, on behalf of the investors.

As an investor, you have a beneficial interest in:
  • any funds that you have committed to invest that are not yet allocated to a particular loan
  • any loan which you have funded, and the associated loan rights and security, in the proportionate share in which you are invested, subject to the terms of the Trust Deed.

The Trustee is required to maintain a register of each investor's proportionate interest in a loan, and any funds they have invested that are yet to be allocated.

The Zagga Credit Assessment Score – an alphanumeric grading system

To assist you with your decision making, Zagga assigns a Credit Assessment Score to each loan, based on information we obtain from the borrower, external credit checks and verification, and our comprehensive credit assessment, all of which we share with you via our secure portal. You only pay once you commit to funding a loan.

The Zagga Credit Assessment Score comprises of an alphanumeric grading system.

Alpha grading (A–F)

The alpha part of the Zagga Credit Assessment Score considers the borrower’s expected ability to service the proposed loan and the borrower’s credit history. The best grade is A, while F is the worst.

  • Lowest risk. Default is considered remote
  • Low risk. Default is considered highly unlikely
  • Moderate risk. Default is considered unlikely
  • Acceptable risk. Default is not anticipated
  • Possibility of default. Risk features merit close attention and scrutiny
  • High risk of default in the event of changes in the economic and/or business environment

Numeric grading (1–5)

The numeric part of the Zagga Credit Assessment Score considers the loan to security value ratio (LVR). This is the amount of the loan against the value of the security. For example, if the loan amount is $100,000 and the security is valued at $400,000 then the LVR will be 25%. The most secure band is 1 while the highest is 5.

  • LVR under 20%
  • LVR 20% to 34%
  • LVR 35% to 59%
  • LVR 60% to 74%
  • LVR 75% or greater

How to start investing

1 Join
  • create an account
2 Register
  • provide your details
3 Customise
4 Review
  • notification of investment opportunity
  • log in and review loan information
  • accept proposed amount, modify investment or decline participation
5 Invest
  • investment amount confirmed
  • transfer funds