Yes, the minimum investment amount is CHF 500 and CHF 1’000 for larger projects.
Investors
Important Points
Investing
Risk
Fees
Is there a minimum investment?
Is my commitment to fund a loan binding?
Yes. Once you have confirmed your investment, you are bound to honour that commitment.
Are partially funded loans paid out to the borrower?
No. We request that a loan is fully financed.
How do I receive interest and repayments?
LEND manages and monitors the entire payment process. All payments are processed via a settlement account at PostFinance. We transfer payments from borrowers proportionally to the investors' bank account.
When I finance a project, do I purchase a loan receivable?
Yes, in most cases you purchase a loan receivable or a share of it. We assign this receivable to you against payment of the purchase price, which makes you a direct creditor of the borrower. Throughout the term of the loan, however, we manage your investment and collect the payments from the borrower.
What is financing through a subsidiary (SPV)?
For larger loan amounts we set up a subsidiary (SPV) that raises funds by issuing a bond and uses the proceeds to finance that specific loan project only. The subsidiary holds the loan receivable on its balance sheet, finances no other projects and has no operating business. You subscribe to the bond directly from the subsidiary; the borrower's payments go to the subsidiary and are passed on to the bondholders. LEND manages the loan and the bond as usual.
The subsidiary is owned by Switzerlend AG and audited by Ferax Treuhand AG. You will find the bond terms with the respective loan project; after subscription they are stored in your LEND account together with your subscription confirmation.
Why is withholding tax deducted on bonds?
Interest on bonds is subject to Swiss withholding tax of 35%. We deduct it from every interest payment, remit it to the Swiss Federal Tax Administration and report the amount in your tax statement. If you are a Swiss taxpayer, you can reclaim the withholding tax through your tax return. Investors resident abroad may be able to reclaim it in full, in part or not at all, depending on the applicable double taxation treaty. No withholding tax applies when you purchase a receivable.
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General Questions
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Borrowers
Find out how to apply for a loan, how repayment works, what fees arise, and what you need to bear in mind.