This Co-Lender Agreement (“Agreement”) sets forth the terms and conditions between you (“Co-Lender” or “Backer”) and Nextpayday Limited (“Nextpayday,” “Company,” “we,” or “us”) regarding your participation as a Co-Lender through our alternative finance platform (the “Platform”).
1. INTRODUCTION
1.1. Nextpayday Limited is a registered Nigerian company with RC No. 7081040, authorized to lend and borrow money on both interest-bearing and non-interest-bearing bases. It operates under the Money Lenders Act 2003 and serves as the lender on record for unsecured salary loans to employees of profiled companies.
1.2. Nextpayday has secured all required employer approvals and maintains unmitigated access to make payroll deductions and direct debits from the salary accounts of borrowers held in Nigerian banks.
1.3. This Agreement governs your relationship with Nextpayday as a Co-Lender, defining the rights, responsibilities, and risks involved in lending through our Platform.
1.4. You acknowledge that lending via the Platform is a financial investment with inherent risks, and we strongly recommend that you seek independent financial and tax advice before participating.
1.5. By registering on our platform or signing this Agreement electronically, you agree to abide by these terms, including our Terms of Use and Privacy Policy.
2. LEGAL AND REGULATORY INFORMATION
2.1. Nextpayday Limited is a technology-driven financial solutions company that facilitates online access to salary-backed credit for borrowers and provides competitive investment opportunities for Co-Lenders.
2.2. Nextpayday operates under the regulatory framework of the Money Lenders Act, 2003 and complies with relevant financial laws applicable in Nigeria.
Nextpayday Ltd. is approved by the Federal Competition and Consumer Protection Commission (FCCPC) to operate as a digital lender in Nigeria."
This approval is confirmed by the FCCPC's list of fully approved digital lending applications, which includes Nextpayday Ltd.
3. CO-LENDER IDENTIFICATION AND VERIFICATION
3.1. To participate as a Co-Lender, you must provide accurate and verifiable personal or corporate information as part of our Know Your Customer (KYC) process.
3.2. You authorize Nextpayday to use your details for identity verification, anti-money laundering (AML) checks, and fraud prevention through licensed third-party service providers.
3.3. Nextpayday reserves the right to decline or delay your registration if verification requirements are not met or if deemed necessary by our compliance team.
4. CO-LENDER REPRESENTATIONS AND WARRANTIES
By entering into this Agreement, you confirm that:
4.1. You are at least 21 years old and legally capable of entering into this Agreement.
4.2. The personal and banking information provided is accurate and valid.
4.3. You own a Nigerian bank account through which you will fund loans and receive repayments.
4.4. You understand the risks associated with unsecured lending, including borrower default.
4.5. If you are acting on behalf of a company, trust, or partnership, you have legal authorization to do so.
4.6. You will comply with all applicable laws and regulations governing your participation as a Co-Lender.
5. OBLIGATIONS OF NEXTPAYDAY
Nextpayday commits to:
5.1. Profiling employers and borrowers to ensure loan eligibility and creditworthiness.
5.2. Conducting thorough KYC and risk assessments before approving loan applications.
5.3. Implementing robust collection and recovery measures, including payroll deductions and direct debits.
5.4. Setting interest rates based on employer risk rating, market competition, and other relevant risk factors.
5.5. Ensuring that all Co-Lender-financed loans are covered under our hybrid credit insurance policy, which provides coverage for death, disability, and job loss.
5.6. Updating loan repayments on the Platform within 24 hours after funds are received.
5.7. Facilitating loan liquidation for Co-Lenders seeking early exit, subject to availability of willing buyers in the secondary market.
5.8. in evaluating borrowers’ capacity and credit worthiness, repayment through Direct Debits, Credit Check, etc, Nextpayday relies on relevant APIs from Licensed Operators. Nextpayday shall not be held liable for any loan loss, delays in recovery or loan delinquencies resulting from data provided by these APIs.
6. OBLIGATIONS OF THE CO-LENDER
As a Co-Lender, you agree that:
6.1. You will not receive repayments until the borrower makes scheduled payments.
6.2. You acknowledge that Nextpayday is not liable for borrower defaults or financial losses incurred.
6.3. You will not engage in loan solicitation, credit counseling, or any regulated financial activities beyond investing in loans on the Platform.
6.4. Your claims are limited to funds in your vault, which reflect received borrower repayments at any given time.
7. PLATFORM ACCESS AND SECURITY
7.1. You will use the Platform solely for investment purposes as outlined in this Agreement.
7.2. You are responsible for maintaining the confidentiality of your account credentials.
7.3. If you suspect unauthorized access, you must notify Nextpayday immediately.
7.4. Nextpayday may restrict Platform access for maintenance, security reasons, or policy violations.
8. THE LENDING PROCESS
8.1. Your funds are matched to borrowers based on loan listings on the Platform.
8.2. Borrowers undergo a three-tier verification process before loans are approved.
8.3. Until a loan is disbursed, Nextpayday may manage and invest idle funds, ensuring full availability when required.
8.4. You cannot modify or cancel loan terms once matched to a Loan Agreement.
8.5. If a borrower defaults, Nextpayday may engage debt recovery agencies, with recovery costs deducted from recovered funds.
9. TERM AND TERMINATION
9.1. This Agreement remains valid as long as you have active loans.
9.2. You may terminate this Agreement only if all outstanding loans are fully settled.
9.3. Nextpayday may terminate this Agreement at any time without prior notice.
10. CONFIDENTIALITY
10.1. Borrowers and Co-Lenders remain anonymous to each other.
10.2. You may not attempt to identify or contact any borrower or Co-Lender.
11. TAX OBLIGATIONS
11.1. Nextpayday does not provide tax advice; you are responsible for complying with applicable tax laws.
11.2. Taxes on interest earnings are your sole responsibility.
12. PRIVACY POLICY
12.1. By agreeing to this Agreement, you acknowledge and consent to Nextpayday’s Privacy Policy regarding the use and protection of your personal information.
13. INDEMNITY
You agree to indemnify Nextpayday against losses arising from:
13.1. Fraudulent or illegal activities on your account.
13.2. Negligence or misrepresentation on your part.
13.3. Unauthorized access due to compromised login credentials.
13.4. Any claim related to intellectual property violations in connection with the Platform.
13.5. Participation as a Co-Lender does not entitle you to Company profits, voting rights, or decision-making influence.
14. DISPUTE RESOLUTION
14.1. Disputes shall first be resolved through mutual negotiation within 30 days.
14.2. If unresolved, disputes shall be referred to arbitration under the Port Harcourt Court of Arbitration (PHCA) in accordance with the Arbitration and Conciliation Act, Cap A10, Laws of Nigeria.
15. GOVERNING LAW
15.1. This Agreement is governed by the laws of the Federal Republic of Nigeria.
16. CONTACT INFORMATION
For inquiries, please contact iDesk@Nextpayday.co.
By signing electronically, you confirm your agreement to the above terms.
Dated 6th January, 2023.
Dated 6th January, 2023.