Lending capital is increased to $10 million
A BNZ-backed social enterprise disrupting predatory lending is forecast to deliver $7 in social good for New Zealand for every dollar invested, a recent independent report by ImpactLab showed.
BNZ said that in recognition of the Money Sweetspot’s positive impact, the bank will double lending capital it provides to the debt-busting social enterprise, from $5 million to $10 million.
Money Sweetspot CEO Sasha Lockley (pictured above) said the extra support from BNZ will help the organisation help more New Zealanders who continue to face increasing cost-of-living pressures.
“Before partnering with us, many of our customers were battling interest rates of between 25% and 50%,” Lockley said. “This can mean it’s difficult to make progress or get through unexpected financial shocks. Our financial reset loans help break that cycle and set them on a sustainable path out of debt and on with their lives.
“As people gain control over their debts, it’s not just their own lives that change for the better. As ImpactLab’s findings show, the ripple effects are seen in improved mental health, and less dependence on emergency benefits, supporting healthier, safer, more resilient communities.”
Money Sweetspot has made quick progress since its official launch four months ago and has since then provided nearly $5 million in debt consolidation loans to hundreds of New Zealanders.
Its debt consolidation enables customers to undertake a financial reset by converting their multiple high-interest loans into a single, manageable payment. They also offer Sweetspot Points, which customers can earn and redeem as additional payments off their loan or as savings to help with future expenses.
“We’re pleased to be able to support Money Sweetspot to expand their services to give more Kiwis a helping hand when they need it,” BNZ CEO Dan Huggins said. “This partnership reflects our focus on growing the long-term social, cultural, and financial wellbeing of all New Zealanders.
“We’ve committed to delivering $50 million in low- or no-interest loans by 2024, and supporting Money Sweetspot is one way we are achieving this goal.”
Visit the Money Sweetspot website for more information about the social enterprise.
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