Crowdlending: Borrowing without help from the banks

In this crowdfunding model, contributors lend money to businesses or private individuals and receive interest in return.

Crowdlending, also called peer-to-peer (P2P) or social lending, allows contributors to lend money to companies or individuals in return for interest. The share depends on the risks associated with the loan. The advantage for businesses is that they can bypass traditional intermediaries such as banks. This system makes it possible to get loans at advantageous interest rates and formalities may prove easier than with banks. It is a particularly advantageous formula for start-ups. 

Making ends meet

The leading Swiss crowdlending platform, Cashare, has already facilitated financing for 1,400 projects. One of its users, for example, got a loan of CHF 50,000 to “cover unexpected end-of-year requirements”. The low-risk loan granted was repayable over 36 months at an interest rate of 6.9%.

Strong growth

Among the various forms of crowdfunding in existence today, crowdlending is the form which saw the strongest growth in Switzerland in 2015. Amounts lent increased by 126% compared to the previous year, reaching CHF 7.9 million according to the 2016 Crowdfunding Monitoring Schweiz Report by the Lucerne University of Applied Sciences and Arts. This massive increase can be explained by the advent of new platforms providing support to SMEs.

Crowdlending platforms in Switzerland

Crowdlending platforms present in Switzerland are the following according to the Crowdfunding Monitoring Switzerland 2018 report:

Name

City

Online since

Link HTML

3Circlefunding

Zürich

2017

www.3circlefunding.ch

Acredius

Zürich

2017

www.acredius.ch

Advanon

Zürich

2015

www.advanon.com

Cashare

Hünenberg

2008

www.cashare.ch

Creditfolio

Basel

2017

www.creditfolio.ch

CreditGate24

Rüschlikon

2015

www.creditgate24.com

Creditworld

Zürich

2016

www.creditworld.ch

Crowd4Cash

Zug

2017

www.crowd4cash.ch

Foxstone

Carouge

2017

www.foxstone.ch

Funders

Luzern

2016

www.funders.ch

Hyposcout

Dübendorf

2016

www.hypo-scout.ch

Lend

Zürich

2016

www.lend.ch

Lendora

Epalinges

2016

www.lendora.ch

Raizers

Lausanne

2015

www.raizers.com

Splendit

Zürich

2014

www.splendit.ch

Swisspeers

Winterthur

2016

www.swisspeers.ch

Swisslending

Genève

2016

www.swisslending.com

WeCan.Fund

Winterthur

2016

www.wecan.fund

Source: 2018 Crowdfunding Monitoring Switzerland report of the Lucerne University of Applied Sciences and Arts (Next update of this table: only when the 2019 Report is published)

Information

Last modification 27.09.2019

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