How it works

How does Harmoney earn its revenue?

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Harmoney operates a lending marketplace, matching people who want to borrow money, with those who want to lend money. It’s people lending to people.

How does Harmoney earn its revenue?

Harmoney operates a lending marketplace, matching people who want to borrow money, with those who want to lend money. It’s people lending to people.

We're not quite like other financial institutions

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Our marketplace, helps everyday people borrow money from other everyday people. Our marketplace allows both retail and institutional lenders to invest their funds. Retail lenders are the everyday people who want lend money on the platform, while wholesale lenders are financial institutions.

Revenue from Borrowers

Borrowers pay an Establishment Fee on receipt of their loan funds. This applies to every new loan, including a re-written loan.

If a Borrower's payment is dishonoured, the Borrower is charged a dishonour fee. If the loan goes into arrears, the Borrower is charged an overdue fee for each month the loan is in arrears. These fees are charged to cover the additional costs of servicing Borrowers that are in arrears.

A monthly account maintenance fee will be introduced to Borrowers in the next few months.

All account maintenance fees and dishonour or overdue fees that are charged to a Borrower are passed through to Harmoney (in the form of a loan administration fee) via the Trustee who arranges the loan for the Lenders. If Harmoney incurs any legal or other enforcement costs in collecting on or enforcing a loan, these costs are payable by the Borrower.

Revenue from Retail Lenders

Retail Lenders pay a fee called the "Lender Fee" that is a percentage of gross interest received from Borrowers. The fee is paid to Harmoney for managing Borrower repayments and administering the loan for that Lender's benefit.

Retail Lenders who fund loans that have Payment Protect also pay the additional amounts detailed under "Lenders in Payment Protect Loans" below.

Revenue Wholesale Lenders

Wholesale Lenders pay a fee called the Service Fee that is a percentage of principal and interest they receive. The Service Fee is paid to Harmoney for managing Borrower repayments and administering the loan for that Lender’s benefit.

All account maintenance fees, dishonour and overdue fees that are charged to the Borrower are passed through to Harmoney (in the form of a loan administration fee) via the Trustee who arranges the loan for the Lenders.

Wholesale Lenders pay a fee called a Note Fee for every note they participate in (i.e. for every $25 share of the loan principal). This fee helps recover the cost Harmoney incurs in marketing to Borrowers to take out a loan on the platform so it could be made available to Lenders to participate in.

Harmoney and Wholesale Lenders may agree other remuneration or financial arrangements.

Wholesale Lenders who fund loans that have Payment Protect also pay the additional amounts detailed under "Lenders in Payment Protect Loans" below.

Lenders in Payment Protect Loans

Lenders who fund a loan that has Payment Protect are charged (via the Trustee) a sales commission to Harmoney for arranging the sale of the Payment Protect. The commission is set at the industry standard rate for arranging the sale.

Lenders are also charged (via the Trustee) a management fee to Harmoney to conduct fair and transparent claims assessment and processing, effective complaint and dispute settlement procedures, and appropriate supervision of claims-related service.

Revenue From Its Own Lending

As a lender on the marketplace Harmoney earns interest from loans and revenue from Payment Protect Fees.