Co-Lenders Agreements

Nextpayday limited is a Nigerian company duly registered to lend and borrow on interest and non-interest-bearing basis with RC No. 1580678. It also possesses requisite licenses to lend money under the money lenders act 2003 and will act as lenders on record for quick loans availed to employees of profiled companies. We also affirm that we have obtained requisite approvals of all employers listed on our platform and has unmitigated access to make payroll deductions from their salaries and direct debit to salary account held with Nigerian banks for all loans disbursed.

1. Introduction

  1. 1.
    This agreement outlines the terms and conditions (the “Terms”) between you (a “Co-lender”, or “backer”) and Nextpayday Ltd. (Nextpayday, the “Company”, “we”, or “us”) under which you agree to co-lender with us through the Company’s alternative finance website (the “Platform”) to back financial request from third party borrowers.
  2. 2.
    It is important that you read these Terms carefully. We strongly recommend that you seek independent financial and tax advice when considering whether to lend your money through the Platform.
  3. 3.
    We do not provide any advice, nor do we make any recommendations to you. The Company solely allows you to invest in loans applied for by Borrowers on the Platform. It is your responsibility to assess whether the Platform is suitable or appropriate for your needs and any decision made to use our Services is done so entirely at your own risk. Please be aware that execution of these Terms does not imply that we have confirmed that use of the Platform and our Services are suitable or appropriate for you. We advise you to consider whether lending through the Platform meets your required risk appetite and investment objectives.
  4. 4.
    You confirm your agreement to these Terms either by registering on our online application system or by signing a copy of these Terms. You should read these Terms carefully before making an online application or signing a copy of them and you should retain a copy for future reference.
  5. 5.
    By signing electronically below, you agree to the following terms together with the Terms of Use, consent to our privacy policy, agree to transact business with us and receive communications relating to the Agreement electronically.
  1. 1.
    Nextpayday Ltd is a limited liability company registered in Nigeria (registration number RC 1578309).
  2. 2.
    Nextpayday Ltd is a technology solutions company which provides a range of online services including nextpayday.ng, an online alternative finance marketplace for borrowers to access credit more efficiently and cost-effectively; and for Co-lenders to earn competitive returns on their investment.
  3. 3.
    Nextpayday operations is regulated by the money lenders act, 2003

3. Co-lender identification

  1. 1.
    As part of the account opening process, you will be asked to provide personal information about yourself. The Company will use this information to verify your identity using a number of electronic checks.
  2. 2.
    You agree that we may pass your personal information to our Service Providers or any other recognised third party company solely for the purposes of verifying your identity, performing anti-money laundering checks and fraud prevention.
  3. 3.
    We do not have to accept you as an Co-lender or accept any funds from you until we have satisfied ourselves, at our absolute discretion, that we have sufficient and appropriate information to accept you. We do not have to give you any reason for rejecting or delaying an application from you.

4. Co-lender representations and warranties

  1. 1.
    you are over the age of 21 years;
  2. 2.
    you are of sound mind and have the capacity to enter into these Terms and be matched to each Loan Agreement;
  3. 3.
    all personal information that you provide about yourself is accurate and true to the best of your knowledge;
  4. 4.
    you hold a bank account in Nigeria in your own name and will use this account to transfer money to our account when you loan money to a Borrower and to receive repayment of loans made;
  5. 5.
    you have carefully considered the risks involved with using the Platform, the Services and being matched to Loan Agreements and also the risks associated with debt financing.
  6. 6.
    if you are registering or accepting these Terms on behalf of a legal entity such as a company, trust or Partnership, you are legally authorised to do so and we may request evidence of such legal entitlement (by way of a copy of any document which shows the valid and subsisting authorisation);
  7. 7.
    you (as an individual or a legal entity) have only registered as an Co-lender once with the Company, except where you have registered as a Co-lender in your personal capacity and have disclosed to us that you are seeking to register as a Co-lender on behalf of a separate legal entity or a Third Party; and
  8. 8.
    you are not breaching any laws or regulations that are applicable to you or any company, trust or co-lendership upon whose instructions you are acting.

5. Obligations of nextpayday.ng

  1. 1.
    Nextpayday is solely responsible for profiling employers, approving loan requests after a thorough KYC [Know Your Customer] process.
  2. 2.
    We acknowledge that all loans listed on the nextpayday marketplace has been thoroughly screened and borrower’s capacity to repay is in line with the applicable extant laws.
  3. 3.
    Nextpayday confirms that it has put in place, all necessary machinery to ensure collection on due date, and recovery, where collection fails.
  4. 4.
    Nextpayday sets interest rates on loans taking into cognisance, employer’s risk rating, competition and other risk factors associated with unsecured loans.
  5. 5.
    Nextpayday will also ensure that all loans disbursed and financed by Co-lenders are fully secured under our hybrid credit insurance policy. This policy covers death, disability and Loss of job. We shall interface with insurance partners to ensure that outstanding principal on the loan are recovered and Co-lender fully indemnified.
  6. 6.
    Nexpayday shall ensure that all collection and recover are updated on the platform within 24hours after receipt of funds, where funds are received through un-automated payment gateways.
  7. 7.
    Nextpayday shall assist Co-lenders to liquidate their loans in the event of partial of whole exit. Such commitment to assist is subject to availability of willing buyer, and at a price in offer for the loans. Nextpayday cannot influence the pricing offered by offtakers in the secondary marketplace.

6. Obligations of the co-lender

You agree that you will do the following, in connection with any loans, Notes, or other transactions involving or potentially involving us;

  1. 1.
    You acknowledge that, subject to these Terms, you will not be entitled to receive repayment of any money until the Borrower to whom you have lent money has made a repayment in accordance with the terms of the applicable Loan Agreement.
  2. 2.
    You also expressly agree and acknowledge that Nextpayday shall not be liable for any loss that you may suffer (howsoever arising) as a result of your decision to make a Lending Commitment.
  3. 3.
    Engage in any activities in connection with a Member Loan that require a license as a loan broker, credit services organization, credit counsellor, credit repair organization, Co-lender or other regulated entity, including but not limited to soliciting loans or loan applications, quoting loan terms and rates and counselling Borrower Members on credit issues or loan options; or
  4. 4.
    Violate any applicable federal, state or local laws.
  5. 5.
    You understand that claims on nextpayday is limited to amounts in your vault, which represents loan instalments received from borrower at any point in time.

7. Access and use

  1. 1.
    The Platform and Website is, at all times, subject to our Website Terms of Use.
  2. 2.
    Secure access to the Platform is provided by way of your username and password. These log-in credentials are unique to you and are the primary method of securely identifying you when delivering our Services to you. It is therefore extremely important that you keep your username and password secure at all times.
  3. 3.
    If you suspect that your secure access to the Platform has been compromised in any way, it is your responsibility to contact us.
  4. 4.
    You confirm that you will only use our Platform for the purposes set out in these Terms.
  5. 5.
    You confirm that you will not attempt to gain unauthorised access to the secure areas of the Website or Platform and furthermore you will not attempt to use code or software to manipulate or automate functions available on the Website.
  6. 6.
    You understand that we may store your IP address information and may monitor your use of the Website in accordance with our cookie policy.
  7. 7.
    Access to the Platform may be restricted at the discretion of the Company, particularly during periods of maintenance and updating.
  8. 8.
    We have the right not to act on your instructions including where we deem that your instruction was not sufficiently clear, or we could not verify your identity to our satisfaction, or the instruction was not made by you, or we believe that the instruction may be related to an illegal activity.
  9. 9.
    You are responsible for any telecommunication costs, broadband fees or data charges that you incur through your access to the Platform.

8. The lending process

  1. 1.
    You acknowledge and confirm that, when you offer to lend money through the Platform, you will be offering your money to be lent to a Borrower through debt financing and you are not lending money to either the Company or any of its members.
  2. 2.
    We acknowledge that when a Borrower applies for a loan, a risk check is run on the Borrower through three tier verification process and our proprietary algorithm.
  3. 3.
    You lend money to a Borrower through this platform when a loan is put up on the Nextpayday platform and you lend your desired amount.
  4. 4.
    You acknowledge that pending when a loan is disbursed to a Borrower, Nextpayday may manage and invest funds in its custody, provided that the complete funds are made available at the time the loan is to be disbursed
  5. 5.
    You are not permitted to vary or cancel the terms of any Loan Agreement to which you are matched as a Co-lender.
  6. 6.
    You acknowledge that where we engage a debt collection agency on your behalf to recover a repayment for a defaulted loan from a borrower, fees for such recovery process shall be at your cost and will be deducted from the recovered repayment.

9. Term and termination

  1. 1.
    Except as otherwise terminated in accordance with the provisions below, these Terms shall commence on the date you register to open an account with the Company and shall remain valid and binding for as long as you have outstanding Loan Agreements.
  2. 2.
    These Terms may be superseded by any amended Terms.
  3. 3.
    These Terms may be terminated by you provided that you have no outstanding Loan Agreements. Notice of termination must be provided in writing to iDesk@Nextpayday.ng
  4. 4.
    These Terms may be terminated by the Company at any time without notice.

10. Confidentiality

We offer anonymity to both Co-lenders and Borrowers. As a Co-lender, you will not be provided with the name or identity of the party to whom you have lent money. Similarly, your identity will not be revealed to a Borrower.

You agree not to make attempts to establish the identity of, or contact, any of the Company’s Co-lenders or Borrowers

11. Tax

The Company does not provide any advice or guidance in relation to tax or otherwise and therefore we strongly recommended that you consult an independent financial advisor or tax advisor if you are unsure as to what your tax obligations are. It is your responsibility to ensure that any tax liabilities which you incur (through interest earned on loans placed on the Platform or otherwise) are paid to the relevant taxation authority. We will not withhold any tax on your behalf except where required by law. Neither the Company nor any member of Nextpayday Ltd. has any liability in relation to any tax liabilities incurred by you.

12. Privacy

You confirm that you have read and understood the Company’s Privacy Policy which provides information on how we use and store the personal information that you provide to us and you further acknowledge that the Company may amend and update this policy from time to time.

13. Indemnity

You agree that neither the Company nor its members have any obligation to reimburse or indemnify you for any cost, loss or liability which you incur as a result of the failure of any Borrower to perform its obligations under the Loan Agreement.

You agree to indemnify and hold harmless the Company, any employee or director of a member of Nextpayday Ltd, and all our other agents or sub-contractors, against all liabilities, costs, expenses, damages and losses (including any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest penalties and legal and other reasonable professional costs and expenses) suffered or incurred as a result of:

  1. 1.
    your fraudulent or illegal use of the Platform, the Services or the Website;
  2. 2.
    your negligence or any default by you of any of these Terms or the terms of any Loan Agreement to which you are matched;
  3. 3.
    any inaccurate or incomplete information that you have knowingly provided to us;
  4. 4.
    your allowing any other person to access your account either with your permission or as a result of your failure to keep your username and password private;
  5. 5.
    any service that you have offered, whether with or without our permission, to another third party using our Platform, Services or Website;
  6. 6.
    any moratorium, rescheduling, refinancing, suspension of payments or similar arrangement or circumstances applying to you and which restrict a Borrower’s ability to repay under a Loan Agreement;
  7. 7.
    any claim made against you for actual or alleged infringement of the Company’s Intellectual Property Rights or any actual or alleged infringement of a third party’s Intellectual Property Rights arising out of or in connection with the Services or your use of the Platform
  8. 8.
    Co-lenders understand that being co-lenders, does not entitle them to claim of profits of the company, or vote in Nextpayday General meetings or participate in decision making process of the company. Co-lenders benefits ends with interest received on loans backed.

14. Dispute resolution

This Agreement shall be governed by the Laws of the Federal Republic of Nigeria. Any dispute arising out of this Agreement, which cannot be settled, by mutual agreement/negotiation within 30 days shall be referred to arbitration by a single arbitrator at the Port Harcourt Court of Arbitration (“PHCA”) and governed by the Arbitration and Conciliation Act, Cap A10, Laws of the Federal Republic of Nigeria.

15. Applicable law

This Agreement shall be interpreted and governed by the laws in force in the Federal Republic of Nigeria. The Parties submit to Arbitration and waive any objections based upon venue.

16. Contact us

If you have any question regarding this Agreement, or comments about the Site or its contents should be directed to iDesk@Nextpayday.ng.