10 reasons to invest money via direct lending
We have created a list to highlight the benefits of direct lending.
- Investing via a direct lending platform is quick, easy and 100% online.
- The interest income is significantly higher compared to savings accounts or classic bonds.Investors can achieve a net return of 4.01% – 9.69% onthis platform for example.
- The investments are safe. All borrowers are subject to strict credit checks. All borrowers with credit ratings of AA, C, D and E have a steady income that by far exceeds the loan amount and have a insurance in case of death. The insurance takes over the loan in the event of disability, unemployment or death.
- In order to minimize the risk of default, CreditGate24 has introduced risk pooling using a solidarity agreement for each rating level.
- The strict credit check,based on classic credit check methods, big data and social media analyses allows for safe investments. To date there has not been one single default with CreditGate24.
- Diversification across several loans (at various rating levels) will result in an even lower risk of default.
- The investor’s and borrower’s data are treated confidentially and anonymously presented on the platform.
- The fees are very attractive because CreditGate24 operates without expensive offices and high administrative costs thanks to the highly automated platform.
- Thanks to regular, reliable repayment of the investment (amortization and interest), the investor benefits from a monthly income and a low capital commitment period.
- Low correlations to stock and bond markets contribute to the stability of the loan.
*Sybille Zimmermann is responsible for marketing and communication at CreditGate24