LEND checks each borrower against creditworthiness databases in our parameterized application process and assign a risk score based on our proprietary risk model and further data from third party providers.

Low default rates are our top priority.

Yes. Once you have confirmed your investment you are bound to honour that commitment.

No. We request that a loan is fully financed.

LEND manages and monitors the entire payment process. All payments are processed via a settlement account PostFinance. We transfer payments from borrowers proportionally to the investors' bank account.

Investors must be aware that a total loss of the investment is possible. As an investor, you are solely responsible for your investment decisions. The rating or interest rate are not a binding measure of the borrower's actual solvency, and LEND does not make any recommendations regarding investments.

There is no deposit protection for loan claims or investments, and LEND or the borrowers are not directly subject to supervision by FINMA. However, LEND is a member of SRO Polyreg and a regulated financial intermediary.

For personal loans, borrowers can purchase payment protection insurance (PPI) against the risks of unemployment, death and disability. Mortgages are secured by a property, and for business loans we regularly work with joint and several guarantees or property as collateral.

We indicate on each project whether collateral exists. Despite collateral, a total loss of an investment cannot be ruled out.

• Committed: Loan projects for which you have made a binding investment in your LEND account, but which are still in the funding process or for which the loan has not yet been disbursed.

• Current: Loan projects for which payments are made on time.

• In grace: Loan projects for which payments are late but are still within the 15-day grace period.

• 15+/30+/60+/etc.: Loan projects whose last payment is more than 15/30/60 days overdue and therefore late.

• Default: Loan projects for which we have not received any payments for an extended period of time. This status is usually assigned when we have terminated the loan agreement and demanded payment of the entire outstanding amount. This is usually the case after 120 days.

• Written Off: Loan projects are written off when there is no reasonable expectation that further payments will be made. Typically, these are loan projects with a loss certificate.

If borrowers fail to make a payment on the due date, they are automatically in default without a reminder letter or other notification. We will send reminders and, where necessary, take further action.

Under certain circumstances, we are also entitled to withdraw from the loan agreement and demand repayment of the entire outstanding amount. However, our goal is always to get borrowers back into a position where they can pay on time again. Our own internal specialists handle these cases.

As an investor, you can check the status of your investments in your LEND account at any time. We will also keep you informed about individual cases in the event of longer payment delays.

The status «Default» usually means that we have terminated the loan agreement and demanded payment of the entire outstanding amount. If the payment deadline passes, we initiate debt collection proceedings and assert the claim on behalf of all investors.

The status «Written off» means that it is no longer reasonable to expect the borrower to make further payments. This is typically the case when debt collection proceedings end with a certificate of loss.

Under special circumstances, such as fraudulent bankruptcy or flight abroad, we may write off a loan project even without a certificate of loss.

As an investor you should invest your overall investment amount in as many loan projects as possible, creating a diversified portfolio.

We generally recommend at least 20 different investments, because then the total loss of a loan only amounts to 5%.

It is important to us that our investors do not have to bear LEND's counterparty risk.

We have therefore chosen a legal structure that would allow investors to enforce their investments against borrowers even without LEND. Technically, investors purchase a (partial) loan claim from LEND and receive it by assignment. This gives them an independent claim against the borrowers. LEND's bankruptcy does not change this.

An investor could therefore collect its (partial) loan claim directly from the borrower. This is of course not the aim and, as long as LEND is responsible for administration, this is contractually excluded. 

We assume that even if LEND were to cease business operations, the management and settlement of current loans would be covered by the ongoing fees until the end of their individual terms. This should enable management within LEND or a rescue company.