Investors

Zool Capital is regulated by the Australian Securities and Investments Commission (ASIC) and is the holder of an Australian financial services licence (AFSL 488196).

Loan Security

All loans are generally secured by a first charge over the assets of the borrower company and recorded on the Personal Property Securities Register. In some cases, a subsequent charge (not first) may be necessary if the first charge is with the borrowers main trading bankers. In addition a personal guarantee is obtained from each of the directors. In certain circumstances a further security by way of a subsequent mortgage over the directors and/or guarantors real property may also be required.


Default Rate And Recovery On Default

The internal classification of overdue borrower repayments are as follows:

1) Past due – a repayment has not been made by the contractual due date and remains overdue for up to 29 days;

2) Delinquency – a repayment is overdue for 30-89 days;

3) Default – the earlier of any of the following:
(i) a repayment is overdue 90+ days;
(ii) the Company is in External Administration/Receiver Manager appointed;
(iii) Director/Guarantor is declared bankrupt.

The nature and extent of the delay in repayment will determine aspects such as reporting, default amount, recovery prospects and further actions.

As all loans are secured by a charge over the borrower company’s assets and personal guarantees from directors, and assuming in a liquidation scenario the company’s assets have not significantly deteriorated in value, a loss of principal and or interest is not anticipated. However when allowing for recovery costs and diminished asset values, this may not always result in a positive outcome.

If the borrower defaults, typically specialised third party collection agents will be appointed to commence recovery action on behalf of the lenders and the first call is on the specific security given by the borrower. If enforcement of a security is not adequate, arrangements are made to call on the personal guarantees.

Interest Rates

We currently facilitate fixed-interest loans only, where the borrower offers a single fixed interest rate and the loan is filled on a first-come-first-served basis.

The interest rates quoted are per annum and is calculated each month on the outstanding capital e.g. if the annual interest rate is 12%, the monthly interest rate is 1% (12% divided by 12 months) on the outstanding capital. As the loan is repaid in equal monthly instalments you will be receiving part of your capital back each month and so the size of the loan will reduce each month and you will have received slightly less than half of your money back at the half way point of your loan term. This means that although the interest rate stays the same it will apply to a progressively smaller capital amount. It works just like a mortgage (but in reverse).

Funding, Repayments And Withdrawals

All of our Members’ funds are held by TCAN as security trustee for each Lender, with leading Australian banks in designated client money trust accounts, in accordance with the security trust deed.

We currently do not pay interest on balances held in your platform account.

Members fund their account by logging in and clicking the “Add Funds” link on the top of the page to notify us of their intention to transfer funds and subsequently transferring funds from their bank account (refer details below).

Online transfer:

To do this you will need to use the following details:

Account Name: 

Bank: 

BSB : 

Account Number: 

SWIFT Code: (for overseas transfers)

When transferring funds, please quote your numeric user id (top right of screen) and initials in the description field so that we can identify your transfer and promptly credit your platform account.

We review bank account receipts each business day and will credit the funds received to your member account within one business day of receipt of your funds with the correct reference.

Each borrower will be required to make monthly repayments into our client money trust accounts. Following receipt of cleared funds, we will credit your member account within one business day.

Members may only transfer uncommitted funds out of their account at any time by clicking the “Take” link on their Dashboard. We will pay your funds to your nominated account and we reserve the right to request a copy of your bank statement prior to payment. Funds will be transferred within two business days after receipt of your request.

We are working towards having a secondary market in place in the future which will allow lenders to sell their loans. It must be noted that when there is a known problem or uncertainty over a loan we will not allow it to be sold on the secondary market. An example of this is if a borrower has missed a repayment or we are aware of facts that reliably indicate the borrower might be about to repay the loan early.

Overseas Members

Generally yes, but it also depends on the jurisdiction where the proposed Member resides.  We will assess each overseas applicant on their individual merits and decide if they qualify to be a member. Find out more about the Process for Non-resident Applicants or contact us at support@zoolcapital.com.au

Borrowers

Zool Capital will undertake a detailed assessment of the borrower’s affairs (including a review of the borrower’s financial position, business plans, key personnel and key clients, security to be offered and the borrower’s ability to repay a loan).  They then prepare a report (which is confirmed and signed by the borrower). The report is similar to the type that a bank might produce internally in addition to a detailed credit application on the borrower’s behalf. An information pack is published on the platform for lenders to review and download.

Tax

We do not deduct tax on interest earned by Australian resident Lenders. Interest earned by non-resident Lenders is not subject to withholding tax based on current Australian tax law. It is each Lender’s responsibility to declare any money earned through loans made on the Zool Capital Platform to their respective tax authority.

Risk

If a decision is needed to be taken about varying a loan or taking legal action, lenders will be contacted by Zool Capital by email, asking for lenders to vote on a specific course of action in respect of a loan. The votes of each lender will be tallied based on a lender’s investment amount in a loan. The majority votes will be acted upon by TCAN.  TCAN has some minimal discretion, such as to act in emergencies or to deal with administrative issues for greater efficiency.

Dispute Resolution

If you have a complaint, please submit it via email to support@zoolcapital.com.au and we will ensure it is dealt with promptly in accordance with our internal dispute resolution policy.