Crowdlending
The modern way to grant loans

All about Peer-to-Peer Lending – for borrowers and investors

You want to know what Crowdlending is, its benefits for borrowers and investors and how this modern way of financing works? Learn all about Crowdlending here!

What is Crowdlending and how does it work?

Crowdlending (often also called Peer-to-Peer Lending or just P2P Lending) refers to the granting of loans via the internet through the crowd. On Crowdlending platforms such as LEND, borrowers can apply for a loan and investors can directly finance such loan projects. LEND acts as a marketplace and processes the documentation and all payments between the parties.

How do Crowdlending platforms and banks differ?

Crowdlending platforms …
… grant loans without using their own capital
Banks …
… grant loans financed with own capital and customers" savings deposits
Crowdlending platforms …
… earn money exclusively with low fees
Banks …
… earn money through fees and interests
Crowdlending platforms …
… enable investors to invest in projects of their choice
Banks …
do not allow investors to directly influence the use of their deposits
Crowdlending platforms …
… operate online and with highly efficient and automated processes
Banks …
work traditionally and as a result cost-intensive

Crowdlending: Advantages for borrowers

Benefit now from the advantages of bank-independent borrowing

Easy application

You benefit from an easy loan application fully online - without time-consuming visits to a bank branch.

Immediate review

Using state-of-the-art IT processes, we review your loan application and can thus decide swiftly on your loan application.

Low interests

Crowdlending platforms often offer better conditions than traditional institutions. With LEND you can get loans from 4.5% annual interest.

Less bureaucracy

On P2P platforms, you enjoy the advantages of less bureaucracy and simple, fast processes.

Crowdlending: Advantages for investors

Benefit from the attractive investment in Crowdlending loans

Easy investing

Crowdlending loans are straighforward investment products. You invest directly in loans and decide where you put your money to work.

Higher yield

Thanks to lean structures and without a bank acting as an intermediary, we save costs - and pass these savings on as additional return.

Investment with small amounts

You can invest in small portions of a loan which allows you to build a diversified portfolio even with small amounts.

Control over investments

You put together your tailor-made portfolio and choose the mix of term, interest rate and risk. With this you can target specific returns.

Any questions?

We are here for you!

Step-by-step instructions for your Crowdlending loan

The path to a Crowdlending loan explained

  1. Application & Review

    Using Crowdlending via LEND, borrowers apply for their desired loan amount and term free of charge and with no strings attached. Applicants can also submit all required documents online.
    On the basis of this information, we perform our loan assessment and assign a score to each loan project. All approved loan projects are published on our platform for financing.

  2. Financing

    From the moment the project is published online, investors have the opportunity to invest in it. If sufficient investors finance the loan successfully, the loan agreement is concluded. Our dashboard keeps applicants and investors informed of the current financing status at all times.

  3. !

    Worth knowing: The loan agreement is concluded with LEND. This avoids a direct contractual relationship between the borrower and investor, which reduces the legal burden for both parties and provides greater protection of their privacy.

  4. Payout

    Once the loan agreement is signed, LEND pays out the P2P loan deducting a small fee from the loan amount.

  5. Repayment

    The loan amount plus interest is repaid with predetermined periods and payments. This process is also managed entirely by LEND. In the event of default or inability to pay, we intervene immediately and take the necessary steps.

  6. !

    Good to know: The loan amount can also be repaid prematurely at any time.

Crowdlending in Switzerland - a future market

"Confidence in this new type of borrowing is growing constantly!"

The Crowdlending market in Switzerland comprises three different types. While Consumer Crowdlending focuses on granting personal loans, Business Crowdlending focuses on business loans. Mortgages are granted as part of Real Estate Crowdlending.

The number and volume of loan projects financed continue to grow at a high annual rate. More than 2000 loans were financed in 2017 representing a total volume of approximately CHF 200 million - an increase of more than 200 percent compared to the previous year. For the year 2018 a volume of CHF 400 - 500 million is expected (Source: Crowdlending Survey 2018, as of 05/2018).
That shows: "Confidence in this new type of borrowing is growing constantly!".