This is why you should
invest with LENDInvest now
Invest together in Swiss loans
Invest with LEND in the Swiss loan market. Build a diversified portfolio and generate much higher returns compared to similar investment opportunities.
There are many compelling reasons for investing in loans with LEND. See for yourself!
While LEND offers fair interest rates for borrowers, returns for investors are significantly higher compared to a savings account but more importantly compared to investments with similar risks. Create a diversified and high-yielding portfolio by investing in different scores and terms.
Amortisation reduces your capital-at-risk
Monthly repayments reduce the outstanding capital constantly. You can reinvest the repayments in new loans and thereby optimise the diversification and return potential of your portfolio. At mid-term your capital-at-risk is reduced to around 50%.
Thorough risk underwriting
We take a very close look! And because we do, we only approve 15% of loan applications for funding by our investor community. Our rigorous credit underwriting and strategic partnership with Intrum Justitia pay off. A clear advantage! So far there has been one default, i.e. the borrower has failed to make payments for 120+ days. At LEND we continue to make every effort to keep this number low. Read more about our risk underwriting and scores.
Crowdlending is a growth market
Investors and borrowers both profit from crowdlending aka peer-to-peer lending. Without a bank in the middle your costs are low and returns high. And in addition to that, LEND is 100% transparent.
Learn more about risk and return
You cannot expect return without risk. However, the loan market is a new asset class that provides significantly higher returns than comparable investments. LEND enables you to achieve your expected return thanks to a top-notch investor cockpit, full cost transparency, and a comprehensive and stringent risk analysis of each loan applicant.
Risk Scores at LEND
LEND assesses the creditworthiness as well as the financial standings of each borrower. We check relevant data and work closely with our strategic partner Intrum Justitia as well as other external databases such as ZEK and Crif. LEND’s proprietary algorithm calculates a default probability and derives the appropriate risk score for each borrower.
- Very stable life situation: married, children, atsame address and at same employer for a long time
- Excellent finances and clean experiences with loans
- Home owners eligible for A+
- Stable life: few address and/or job changes
- Good to excellent finances
- Positive payment records
- Changing life situations: recently changed employer, moved, changed marital status
- Few or no payment records
- Self-employed persons (Sole Proprietorship or employed in own company). Minimum of 2 years self-employed and demonstrated track-record
- S1 approximates investment category A+ in terms of expected loss rate, S2 approximates A and S3 corresponds to classes B and C
- Possible collection experiences, but nothing major or open
- No loan experience (e.g. younger person or recently moved to Switzerland) and lower income levels
- Best Model-Scores selected for D1 subcategory
- Disqualifying or bad payment or loan experiences (e.g. credit bureau, debt enforcements)
- Financial situation not sufficient
- Residency, employment, presence in Switzerland criteria not met
1) Annual interest rate received by lenders. Interest rates on loans depend on the LEND Investment Category, Loan Term and selection of optional borrower insurance.
2) Annual return after servicing fees, which investors earn on their capital invested through LEND. Provisions for losses are not reflected.
3) The expected Cumulative Loss Rate is indicative only and based on the statistical LEND model, calibrated with industry experience data and routinely validated.
IMPORTANT: Actual returns can vary from the indicated Target Return ranges. LEND is not responsible for the financial performance of investments made through LEND.
Diversification of assets
The cornerstone of a successful investment strategy is diversification. At LEND you can allocate your investment to multiple loan projects and achieve the desired diversification effect. In a diversified portfolio a default a default has less impact which protects your expected return.
Payment Protection Insurance
The majority of loans on LEND are insured against the risks of unemployment, inability to work and death by our partner “Helvetia Versicherungen”. The protection covers monthly payments for up to12 months (unemployment and inability to work) or the outstanding principal (death). The Payment Protection Insurance considerably reduces the risk of non-payment.
How does LEND reduce the default risk?
We reduce the default risk with multiple measures:
- stringent quality- and risk assessment
- Payment Protection Insurance (Helvetia)
- Constant reduction of your capital-at-risk with monthly repayments
- Management of late payments
Our interests are aligned with yours, as we only earn our fee if the borrower makes the monthly payments. This guarantees that we will do our best that borrowers meet their payment obligations.
Contract management and debt collection
Should a borrower not meet his payment obligations we manage the reminder process and work with professional debt collectors to develop the best possible solution.
Who is Lend
LEND is a brand and platform operated by Switzerlend AG with its offices based in Zürich. Switzerlend has a lending license and as a financial intermediary is a member of and supervised by SRO PolyReg.
We are proud of our state of the art risk underwriting which is based on a proprietary risk model developed by LEND. We screen each borrower in close cooperation with our strategic partner Intrum Justitia.