Frequently Asked Questions

About CreditGate24

What is CreditGate24?

Cred­it­G­ate24 is an on­line peer-to-peer loan plat­form.  We con­nect bor­row­ers with in­vestors in a way that is easy, time-sav­ing, con­veni­ent, and se­cure. In­vestors and bor­row­ers be­ne­fit equally from low and trans­par­ent fees com­pared to those in­curred through tra­di­tion­al banks and oth­er loan sup­pli­ers. Bor­row­ers be­ne­fit from the quick and easy cred­it ap­plic­a­tion, the flex­ib­il­ity and low in­terest rate of the loans, and the simple and straight­for­ward cred­it check pro­cess. Dis­cre­tion and the pro­tec­tion of our cli­ents’ per­son­al in­form­a­tion are para­mount to Cred­it­G­ate24. In­vestors have the pos­sib­il­ity to in­vest in a vari­ety of cred­it pro­jects with dif­fer­ent risk-re­turn pro­files (cred­it rat­ings). We en­sure the se­cur­ity of the in­vestors’ in­vest­ment through our strict and elab­or­ate cred­it risk check. Ad­di­tion­al safety meas­ures—like our in­sur­ance (in case of death) and a high de­gree of di­ver­si­fic­a­tion—fur­ther in­crease the chances of in­vestors gain­ing a profit.

What are peer-to-peer loans?

Peer-to-peer-loans (P2P) is the prac­tice of lend­ing money to in­di­vidu­als or busi­nesses through on­line ser­vices that match in­vestors dir­ectly with bor­row­ers. Since peer-to-peer lend­ing com­pan­ies of­fer these ser­vices en­tirely on­line, they can run with lower over­head and, there­fore, provide the ser­vice more cheaply than tra­di­tion­al fin­an­cial in­sti­tu­tions. P2P-loans al­low for a so­cial com­pon­ent, an as­pect that was lost in big banks.

What does the service of CreditGate24 cost?

Cred­it­G­ate24 re­ceives re­mu­ner­a­tion for qual­ity con­trol, use of the plat­form, and the sup­port ser­vice offered to both in­vestors and bor­row­ers dur­ing the term of a loan. Bor­row­ers pay an an­nu­al fee of 0.6 – 0.8% p.a. of the loan amount which will be de­duc­ted from the pay out amount. In­vestors pay a fee of 1% on every monthly in­stal­ment paid back by the bor­row­er (amort­isa­tion and in­terest).

What are the fees at CreditGate24?
Who operates CreditGate24?

Cred­it­G­ate24 is an in­de­pend­ent Swiss com­pany op­er­ated by Cred­it­G­ate24 (Sch­weiz) AG, a Swiss private cor­por­a­tion with its headquar­ters in Rüsch­likon, ZH. Every day, our ex­per­i­enced spe­cial­ists link in­vestors with bor­row­ers dir­ectly, while guar­an­tee­ing high qual­ity and se­cur­ity of the pro­cesses.

Why does Hypothekarbank Lenzburg recommend CreditGate24 to its clients?

Hy­po­thekar­b­ank Len­zburg of­fers its cus­tom­ers the op­por­tun­ity to ap­ply for personal loans dir­ectly via the on­line plat­form of Cred­it­G­ate24. The co­oper­a­tion was es­tab­lished in the best in­terest of cus­tom­ers, who be­ne­fit from low in­terest rates and flex­ible solu­tions at Cred­it­G­ate24. Cred­it­G­ate24 re­mains com­pletely in­de­pend­ent and there are no com­pens­a­tion agree­ments between Hy­po­thekar­b­ank Len­zburg and Cred­it­G­ate24.

Mari­anne Wildi, CEO of Hy­po­thekar­b­ank Len­zburg, com­ments: "The cred­it un­der­writ­ing pro­cess of Cred­it­G­ate24 meets cur­rent in­dustry stand­ards in the lend­ing busi­ness. We there­fore re­com­mend Cred­it­G­ate24 to our cus­tom­ers - both for bor­row­ers and for lenders." ( Press release only in German )

Borrowers Private

Who can apply for a loan over CreditGate24's platform?

In prin­ciple, any­one can ap­ply for a loan, provided the fol­low­ing con­di­tions are ful­filled:

  • Ma­jor­ity
  • At least a B res­id­en­ce per­mit (if you do not have a Swiss or Liecht­en­stein ID)
  • Res­id­en­ce (since 6 months (min­im­um)) in Switzer­land or the Prin­cip­al­ity of Liecht­en­stein
  • Suc­cess­ful iden­tity and money laun­der­ing checks
  • Reg­u­lar in­come and/or col­lat­er­al/as­sets

This means that more people have ac­cess to cred­it at Cred­it­G­ate24 than with con­ven­tion­al lend­ing pro­viders.

How do I apply for a loan?

Ap­ply­ing for a loan is quick and in­tu­it­ive:

  1. Be­fore re­gis­tra­tion, you can already cal­cu­late the monthly rate for your de­sired loan de­pend­ing on the amount and the term.
  2. After re­gis­tra­tion, you sub­mit the data re­quired for the cred­it check
  3. Once the in­form­a­tion is re­ceived and ana­lysed by Cred­it­G­ate24 you will re­ceive a con­crete cred­it pro­pos­al tailored to your needs from our cred­it spe­cial­ists
  4. Once you have signed the cred­it pro­ject, we will pub­lished your loan pro­ject an­onym­ously for in­vestors on Cred­it­G­ate24
  5. As soon as the cred­it pro­ject is fully fin­anced by the in­vestors and they have paid the loan amount to Cred­it­G­ate24, you will im­me­di­ately re­ceive the de­sired loan amount (Cred­it­G­ate24 fees de­duc­ted) trans­ferred to your ac­count. In the case of con­sumer loan, the Swiss Fed­er­al Law on Con­sumer Cred­it stip­u­lates a with­draw­al peri­od of 14 days be­fore the cred­it is paid out.
What costs will I incur through my credit project?

You will pay a fixed monthly in­stal­ment, com­prised of your in­di­vidu­al yield and the amort­isa­tion of the loan.

How quickly will the requested loan amount be paid out?

As soon as you send all the ne­ces­sary doc­u­ments for the loan dir­ectly to Cred­it­G­ate24, we will send you a loan of­fer via in­tern­al email. Once you ac­cept the loan of­fer, the ori­gin­al con­tract for the cred­it pro­ject will be mailed to you im­me­di­ately to be signed. When we have re­ceived the signed con­tract, your cred­it pro­ject will be pub­lished on our plat­form. Your re­ques­ted loan amount will be paid out when it is fully fin­anced on be­half of our in­vestors.

Can I repay my loan early?

Yes, you can re­pay your per­son­al loan early. For leg­al reas­ons, we dis­tin­guish between per­son­al loans that are sub­ject to the Con­sumer Cred­it Act and per­son­al loans that ex­ceed a loan amount of CHF 80,000 and are not sub­ject to the Con­sumer Cred­it Act. 

Early re­pay­ment of loans sub­ject to the Con­sumer Cred­it Act

For con­sumer loans, bor­row­ers can ful­fill the ob­lig­a­tions un­der the loan agree­ment ahead of time. In this case, the bor­row­er has a claim for the re­pay­ment of in­terest over the un­used cred­it peri­od. Early re­demp­tion must be no­ti­fied to us in writ­ing or by e-mail or e-Mes­sage 10 work­ing days be­fore the date of re­pay­ment. The fur­ther pro­ced­ure can be found with the con­firm­a­tion mes­sage, which you will re­ceive from us.

Early re­pay­ment of loans over CHF 80,000

Loans or parts of a loan with a loan amount of more than CHF 80'000 can be re­paid by bor­row­ers early, but at the earli­est 12 months after the loan has been paid out. The in­ten­ded early re­pay­ment is to be an­nounced to us in writ­ing by e-mail or e-Mes­sage 10 work­ing days be­fore the date of re­pay­ment. A early re­pay­ment charge is pay­able in ac­cord­ance with the loan agree­ment. The fur­ther pro­ced­ure can be found with the con­firm­a­tion mes­sage, which you will re­ceive from us.

Can investors see my personal details?

Cred­it­G­ate24 does not pub­lish any per­son­al data such as your name, ad­dress or e-mail ad­dress; only stat­ist­ic­al val­ues such as age, gender and na­tion­al­ity are vis­ible. Cred­it­G­ate24 at­taches great im­port­ance to dis­cre­tion.

What are my benefits as a borrower?

Eth­ics in deal­ing with bor­row­ers and trans­par­ency are key prin­ciples of Cred­it­G­ate24. Ob­tain­ing loans through Cred­it­G­ate24's plat­form is a clev­er al­tern­at­ive to the more tra­di­tion­al—and ex­pens­ive—cred­it sup­pli­ers. Key ad­vant­ages:

  • Flex­ible, fast and fair grant­ing of loans
  • Simple and straight­for­ward cred­it check pro­cess
  • Low in­terest rates
  • No hid­den costs
  • Free re­gis­tra­tion and ac­count-keep­ing
  • Highest flex­ib­il­ity, with the pos­sib­il­ity to pay back your loan ahead of sched­ule
  • Highest dis­cre­tion, pri­vacy pro­tec­tion and guar­an­tee of your an­onym­ity
What is debt restructuring or a credit replacement?

If a bor­row­er takes out sev­er­al loans, he can con­vert them in­to a single con­sol­id­ated loan. A bor­row­er can bring down high in­terest when switch­ing to a new cred­it sup­pli­er or plat­form.

What does CreditGate24 do against attempts to defraud?

Cred­it­G­ate24 will press crim­in­al charges on any and every at­tempt to de­fraud. Our cred­it spe­cial­ists are trained to de­tect at­tempts to de­fraud and are in con­stant con­tact with nu­mer­ous in­sti­tu­tions in or­der to val­id­ate any sus­pi­cious activ­ity.

Borrowers SME

Who can apply for a loan over CreditGate24's platform?

Any­one can ap­ply for a loan through Cred­it­G­ate24’s plat­form, provid­ing the fol­low­ing con­di­tions are met:

  • Ma­jor­ity age
  • Res­id­ence in Switzer­land or Liecht­en­stein
  • Passing of iden­tity and money laun­der­ing check
  • Reg­u­lar in­come and/or se­cur­it­ies/prop­er­ties
How do I apply for a loan?

Ap­ply­ing for a loan is quick and in­tu­it­ive:

  • Be­fore re­gis­ter­ing, you can already cal­cu­late the monthly rate for your de­sired loan de­pend­ing on the amount and the term.
  • After re­gis­tra­tion, you sub­mit the per­son­al in­form­a­tion ne­ces­sary for a cred­it check
  • Once this in­form­a­tion is re­ceived and ana­lysed by Cred­it­G­ate24
  • Once you have signed the cred­it pro­ject con­tract, we pub­lish your cred­it pro­ject on our plat­form so it is vis­ible to in­vestors.
  • As soon as your cred­it pro­ject is fully fin­anced and the in­vest­ment money is wired to Cred­it­G­ate24, the funds will be trans­ferred to your ac­count (Cred­it­G­ate24 fees de­duc­ted)
What costs will I incur through my credit project?

You will pay a fixed monthly in­stal­ment, com­prised of your in­di­vidu­al yield and the amort­isa­tion of the loan.

Is the borrower liable for the withholding tax?

Cred­it­G­ate24 wants to en­sure for it­self and for its cus­tom­ers at all times that the leg­al reg­u­la­tions are com­plied with. In this con­text we would like to draw your at­ten­tion as a bor­row­er to the fol­low­ing pos­sibly rel­ev­ant as­pects of the Swiss with­hold­ing tax le­gis­la­tion. Ac­cord­ing to the in­form­a­tion sheet Ob­lig­a­tions (S-02.122.1) dated 02.10.2015 as well as the cir­cu­lar Cli­ent Cred­it S-1-034-V-2011-e dated 26.07.2011 of the Swiss Fed­er­al Tax Ad­min­is­tra­tion FTA, cer­tain as­pects may be rel­ev­ant for you. Please note the fol­low­ing spe­cif­ic reg­u­la­tions:

Start of the tax li­ab­il­ity

a) Bonds is­sued

A bond with­in the mean­ing of the Stamp and With­hold­ing Tax Law ex­ists if a do­mest­ic debt­or raises money from more than 10 cred­it­ors against the is­sue of debt ac­know­ledge­ments on ident­ic­al terms. The total loan amount must be at least CHF 500'000.

b) Me­di­um-term bonds with­in the mean­ing of the Stamp and With­hold­ing Tax Act ex­ist if a do­mest­ic debt­or (non-bank) con­tinu­ously bor­rows money at vari­able con­di­tions from more than 20 cred­it­ors in ex­change for debt ac­know­ledge­ments. The total loan amount must be at least CHF 500'000. If me­di­um-term bonds are is­sued by a bank with­in the mean­ing of the Bank­ing Law, the tax li­ab­il­ity com­mences upon the com­mence­ment of busi­ness act­iv­ity, ir­re­spect­ive of the num­ber of cred­it­ors. When de­term­in­ing the num­ber of cred­it­ors for bonds and me­di­um-term bonds, do­mest­ic and for­eign banks with­in the mean­ing of the bank­ing le­gis­la­tion ap­plic­able at their re­gistered of­fice are not to be coun­ted.

If case a) or b) is also ful­filled due to fur­ther cred­it re­la­tion­ships with third parties, please con­tact Cred­it­G­ate24 via eMes­sage or email at info@creditgate24.com.

How quickly will the requested loan amount be paid out?

As soon as you send all the ne­ces­sary doc­u­ments for the loan dir­ectly to Cred­it­G­ate24, we will send you a loan of­fer via in­tern­al email. Once you ac­cept the loan of­fer, the ori­gin­al con­tract for the cred­it pro­ject will be mailed to you im­me­di­ately to be signed. When we have re­ceived the signed con­tract, your cred­it pro­ject will be pub­lished on our plat­form. Your re­ques­ted loan amount will be paid out when it is fully fin­anced on be­half of our in­vestors.

Can we repay our business loan early?

SME in­stal­ment loans or parts of an SME in­stal­ment loan can be re­paid early by bor­row­ers un­der cer­tain con­di­tions. Please con­tact the rel­ev­ant cred­it of­ficer.

SME short-term loans can­not be re­paid early.

What data can investors access?

In the case of SME in­stal­ment loans and short-term loans, only stat­ist­ic­al val­ues such as leg­al form, sec­tor, date of found­a­tion and re­gistered of­fice are pub­lished.

What are my benefits as a borrower?

Eth­ics in deal­ing with bor­row­ers and trans­par­ency are key prin­ciples of Cred­it­G­ate24. Ob­tain­ing loans through Cred­it­G­ate24's plat­form is a clev­er al­tern­at­ive to the more tra­di­tion­al—and ex­pens­ive—cred­it sup­pli­ers. Key ad­vant­ages:

  • Flex­ible, fast and fair grant­ing of loans
  • Simple and straight­for­ward cred­it check pro­cess
  • Low in­terest rates
  • No hid­den costs
  • Free re­gis­tra­tion and ac­count-keep­ing
  • Highest flex­ib­il­ity, with the pos­sib­il­ity to pay back your loan ahead of sched­ule
  • Highest dis­cre­tion, pri­vacy pro­tec­tion and guar­an­tee of your an­onym­ity
What is debt restructuring or a credit replacement?

If a bor­row­er takes out sev­er­al loans, he can con­vert them in­to a single con­sol­id­ated loan. A bor­row­er can bring down high in­terest when switch­ing to a new cred­it sup­pli­er or plat­form.

What does CreditGate24 do against attempts to defraud?

Cred­it­G­ate24 will press crim­in­al charges on any and every at­tempt to de­fraud. Our cred­it spe­cial­ists are trained to de­tect at­tempts to de­fraud and are in con­stant con­tact with nu­mer­ous in­sti­tu­tions in or­der to val­id­ate any sus­pi­cious activ­ity.

SME short term loan

What is a SME short term loan?

The SME short term loan is a way to ab­sorb li­quid­ity at at­tract­ive con­di­tions for your com­pany in the short term. The terms are 1-6 months and the loan is amort­ized with a single rate at the end of the term.

What is the difference between SME short term loan and factoring?

Factor­ing is a way to get short term li­quid­ity from the ac­counts book without hav­ing to wait for your cus­tom­er to pay your bill. In the so-called "real" factor­ing, they as­sign the claim to a buy­er, which also ac­cepts the del cre­dere (risk of pay­ment fail­ure). In oth­er as­pects of factor­ing, the in­voice is only re­quired as col­lat­er­al for the loan and the risk of del cre­dere re­mains with you. In this case, you must re­pay the amount re­ceived at the end of the term. Either way, factor­ing is only pos­sible if they can sell a claim or prove it as se­cur­ity. This is not ne­ces­sary with Cred­it­G­ate24's SME short term loan. We con­sider your com­pany hol­ist­ic­ally and carry out a cred­it check. Com­pared to factor­ing, the Cred­it­G­ate24 SME loan also of­fers very at­tract­ive in­terest rates and does not bur­den your com­pany un­ne­ces­sar­ily. Of course, we like to ac­cept your deb­it book as a se­cur­ity, which means that your con­di­tions will be im­proved.

What are the differents between the SME short term loan and the installment SME loan?

The term is short­er and amounts to one to six months. The SME in­stall­ment loan has a ma­tur­ity of at least 12 months. The SME short-term loan is not amort­ized; there­fore, no monthly pay­ments are made, but the en­tire loan amount in­clud­ing in­terest is re­paid at the end of the term. An early cred­it re­pay­ment of the SME short loan is not pos­sible. If the bor­row­er re­pays the loan be­fore the due date, the bor­row­er will not re­ceive in­terest cred­it.

What are the benefits for the borrower?

The bor­row­er be­ne­fits from a product that ex­actly meets his needs. Short term, quick de­cision, tar­geted li­quid­ity im­prove­ment, no amort­iz­a­tion.

Can I repay the SME short loan prematurely?

An early cred­it re­pay­ment is not pos­sible.

In which situations can a SME short term loan be considered?
  • Pre-fin­an­cing of cur­rent as­sets (in­vent­ory / factor­ing / debt­ors /)
  • Bridging sea­son­al fluc­tu­ations
  • Pre-fin­an­cing of in­voices
  • Short-term li­quid­ity re­quire­ment re­fin­an­cing
  • Bridging a li­quid­ity gap
  • Un­fore­seen
Is there a solidarity agreement for investors in the SME short term loan?

Yes, the SME short term loan is a sep­ar­ate type of cred­it with its own solid­ar­ity agree­ment between in­vestors of the same rat­ing level.

Can I sell SME short term loans as an investor on the secondary market?

No. This is not pos­sible due to the short term.

Investors

Who can be an investor?

Most any­one can in­vest money over Cred­it­G­ate24's plat­form (in­vestors with cer­tain coun­tries of res­id­ence are ex­cluded for jur­idic­al reas­ons, e.g. USA). However, we have a strong fo­cus on in­vestors dom­i­ciled in Switzer­land and Liecht­en­stein. In or­der to be an in­vestor through Cred­it­G­ate24, you have to be of age (at least 18 years old) and have a val­id Swiss bank ac­count. Cred­it­G­ate24 op­er­ates un­der the Swiss Money Laun­der­ing Law.  There­fore, we are ob­liged to jus­ti­fy all cash­flows and cla­ri­fy the ori­gins of all money.

What is a credit project share (CPS)?

CPS refers to the in­vestors' quota in a cur­rent loan pro­ject. A CPS is defined by the amount, term, in­terest rate, and cred­it rat­ing.

How much is the minimum amount which I can invest in a loan project?

The min­im­um amount per loan pro­ject is CHF 500.-

How do I invest on CreditGate24’s platform?

Once we veri­fy your in­form­a­tion, your ac­count will be ac­tiv­ated, and you can start gain­ing great re­turns through the fol­low­ing steps:

  1. Un­der In­vest­ments -> At­tract­ive Yields -> More Pro­jects, you will find an over­view of all avail­able cred­it pro­jects with their re­spect­ive rat­ing grades, nom­in­al in­terest rate, term, and yield, as well as in­form­a­tion re­gard­ing the bor­row­er and the pro­ject’s pur­pose.
  2. You se­lect a cred­it pro­ject based on your pref­er­ences.
  3. You enter the amount you want to in­vest in the chosen cred­it pro­ject.
  4. You click the but­ton "In­vest­ment Con­firmed. Leg­ally Bind­ing.”
  5. As soon as a cred­it pro­ject is fully fin­anced, you will re­ceive an email from Cred­it­G­ate24 re­quest­ing to trans­fer your des­ig­nated in­vest­ment amount with­in 72 hours.
Does it matter from which account my payments are made?

No, you are able to send the money from every of your Swiss ac­counts but the monthly re­pay­ments are paid only to your bank ac­count that you have saved in our sys­tem.

How do I receive my returns?

As an in­vestor, you re­ceive your re­turns (amort­isa­tion and in­terest) every month after the in­stal­ment of the bor­row­er has been paid via Cred­it­G­ate24 to your ac­count and trans­ferred to your des­ig­nated ex­tern­al ac­count (Bank or Post ac­count).

Re­pay­ments and in­terest pay­ments on SME short-term loans are made with a one-time pay­ment to your ex­tern­al ref­er­ence ac­count (bank or postal ac­count) at the end of the term of the loan agree­ment.

What fees do I pay as an investor?

You can re­gister free of charge as an in­vestor and in­vest in cred­it pro­jects. Cred­it­G­ate24 will charge you only 1% of the amounts ac­tu­ally paid to you (amort­iz­a­tion and in­terest).

What are my benefits as an investor?

In­vestors can in­vest in­di­vidu­ally in vari­ous loan pro­jects with very at­tract­ive risk and re­turn pro­files (rat­ing levels). Fur­ther, in­vestors are able to sup­port bor­row­ers and their pro­jects. Cred­it­G­ate24 links in­vestors and bor­row­ers dir­ec­tly; due to our on­line strategy, we avoid the large amount of over­head costs ex­per­i­en­ced by tra­di­tion­al lend­ing ser­vices. In­vestors and bor­row­ers be­ne­fit equally from our cost-sav­ing strategies. Both in­vestors and bor­row­ers be­ne­fit from these cost sav­ings. The se­cur­ity of our in­vestors' in­vest­ments is Cred­it­G­ate24’s top pri­or­ity. The risk for in­vestors is re­duced as much as pos­sible by the fol­low­ing meas­ures:

  • Each loan is sub­ject to a strict and com­plex risk as­sess­ment
  • De­pend­ing on the loan, the bor­row­er takes out a death risk in­sur­ance policy cov­er­ing a the­or­et­ic­al re­sid­ual debt de­fault of CHF 100,000 (the bor­row­er's spe­cif­ic cir­cum­stances must be con­sidered and may res­ult in re­stric­tions on the in­sur­ance be­ne­fits).
  • Min­im­isa­tion of the ef­fect of a loan de­fault on an in­di­vidu­al in­vestor by dis­trib­ut­ing loan de­faults among all in­vestors with­in the same rat­ing level and loan type (loan de­fault pool­ing)
  • Strict mon­it­or­ing of all cash flows and con­sist­ent re­ceiv­ables man­age­ment

Since, des­pite these meas­ures, not all risks can be com­pletely ex­cluded, we re­com­mend that you spread your in­vest­ment over dif­fer­ent pro­jects in the same or dif­fer­ent rat­ing levels us­ing dif­fer­ent types of cred­it (SME in­stal­ment loan, per­son­al loan, SME short loan).

What does “additional profit chance” refer to?

The profit chance is the profit com­pon­ent which cor­res­ponds to the prob­ab­il­ity of de­fault. These earn­ings are in­cluded in the max­im­um net rev­en­ue and are paid out to­geth­er with the monthly re­pay­ments.

What is "gross return"?

Gross re­turn is the earn­ings be­fore de­duc­tion of the in­vestor ser­vice fee and stat­ist­ic­ally ex­pec­ted de­faults.

What is “maximum net yield”?

Max­im­um net yield is the yield cal­cu­lated after ser­vice fees are de­duc­ted without con­sid­er­ing the prob­ab­il­ity of de­fault.

What is “expected net yield”?

Ex­pec­ted net yield is the yield cal­cu­lated after ser­vice fees are in­curred while in­clud­ing the prob­ab­il­ity of de­fault.

Does CreditGate24 provide tax reporting?

Re­gis­tra­tion with Cred­it­G­ate24 and in­vest­ing in cred­it pro­jects is free of charge. Cred­it­G­ate24 charges a fee of 1% on every re­pay­ment to your ac­count (amort­isa­tion and in­terest). The is­su­ance of your an­nu­al Cred­it­G­ate24 tax re­port­ing is already in­cluded in this fee.

What does the amount of the solidarity surcharge that is shown in the tax statement mean?

The lis­ted sol­id­ar­ity charge is the total of the sol­id­ar­ity li­ab­il­ity arising with­in the tax year, ir­re­spect­ive of the ef­fect­ive deb­it. Thus, the de­cis­ive factor is the point in time at which the joint and sev­er­al li­ab­il­ity arises (= point in time when the joint and sev­er­al li­ab­il­ity is com­mu­nic­ated) and not when the joint and sev­er­al li­ab­il­ity amount is off­set against a re­pay­ment by in­stal­ments.

What does the amount of recoveries that is shown in the tax statement mean?

Re­cov­er­ies of de­faul­ted loans (e.g. if a bor­row­er against whom CG24 holds a loss cer­ti­fic­ate again has fin­an­cial re­sources that could be re­covered by CG24) are paid out to the joint and guar­ant­ors con­cerned. The amount shows the re­cov­er­ies paid out in the tax year.

Investor Dashboard

What means “Portfolio” in the statistics section?

With­in the sec­tion "Stat­ist­ics" the port­fo­lio shows the cur­rent status of your in­vest­ments at Cred­it­G­ate24. This fig­ure in­cludes the out­stand­ing cap­it­al amount, i.e. the total of your in­vest­ments de­duct­ing the amort­iz­a­tion pay­ments which have already been made. Your port­fo­lio also in­cludes Cash in Trans­it which is the total sum of money in­ves­ted by you that has not been paid out to bor­row­ers yet.

What is the net income composed of?

Net in­come com­prises all in­terest and oth­er in­come re­ceived to date less all en­cumbered sol­id­ar­ity con­tri­bu­tions. The in­vestor ser­vice fee is not re­flec­ted.

Rate of return

The rate of re­turn shows the ef­fect­ive an­nu­al re­turn for your port­fo­lio. It takes in­to ac­count the in­ves­ted loan prin­cip­al, prin­cip­al re­pay­ments, in­terest pay­ments, fees, ac­crued in­terest, solid­ar­ity charges and cred­its (for any de­faul­ted loans) and paid dis­counts/premi­ums on sec­ond­ary mar­ket trans­ac­tions. The cal­cu­la­tion uses an in­tern­al rate of re­turn meth­od that in­cor­por­ates daily his­tor­ic­al cash flows and pro­jec­ted cash­flows as ex­pec­ted based on your cur­rent in­vest­ments.

Investment Status
  • In­vest­ment: The in­vestor has com­mit­ted to in­vest in the loan but the loan value has not been fully fin­anced yet. The loan is pub­lished on the Cred­it­G­ate24 plat­form pending full fund­ing.
  • De­clined: The bor­row­er res­cin­ded the loan agree­ment with­in the leg­al with­draw­al peri­od.
  • Cap­it­al call: The in­vest­ment has been con­firmed and in­voices have been is­sued to the in­vestors for pay­ment.
  • Loan pay out: All in­di­vidu­al in­vest­ments have been col­lec­ted and the loan is be­ing paid out to the bor­row­er.
  • On time: The bor­row­er has made all sched­uled pay­ments to date.
  • 1-30 days over­due: One of the bor­row­er’s re­pay­ments is over­due by up to 30 days. Meas­ures for re­pay­ment punc­tu­al­ity have been ini­ti­ated.
  • 31-60 days over­due: One of the bor­row­er’s re­pay­ments is over­due by up to 60 days. Con­tin­ued meas­ures for re­pay­ment punc­tu­al­ity are act­ive.
  • 61-90 days over­due: One of the bor­row­er’s re­pay­ments is over­due by up to 90 days. Con­tin­ued meas­ures for re­pay­ment punc­tu­al­ity are act­ive.
  • >90 days over­due: The loan re­pay­ments are over­due past 90 days. Pro­cesses for re­hab­il­it­a­tion and re­cov­ery have been ini­ti­ated.
  • Early re­pay­ment pending: The bor­row­er has made use of their right to re­pay the loan early. Full re­pay­ment is ex­pec­ted with­in 30 days.
  • Re­paid early: The bor­row­er pre­ma­turely re­paid the loan in full and was charged a fee for early re­pay­ment.
  • Paid back: The loan was re­paid in full.
  • Sold: The in­vest­ment has been sold on the sec­ond­ary mar­ket.
  • De­faul­ted with re­cov­ery chance: The loan has de­faul­ted and the re­cov­ery pro­cess is still un­der way.
  • De­faul­ted with loss: The loan has de­faul­ted and re­cov­ery pro­cesses have been com­pleted.

Secondary Market

What is the CreditGate24 secondary market?

The Cred­it­G­ate24 sec­ond­ary mar­ket al­lows lenders to sell their ex­ist­ing in­vest­ments (CPS or cred­it pro­ject shares). This of­fers the op­por­tun­ity to gen­er­ate li­quid­ity be­fore the end of the term of a CPS. Lenders who act as buy­ers on the sec­ond­ary mar­ket get ac­cess to ex­ist­ing CPS with short­er re­main­ing terms.

What can I buy or sell on the CreditGate24 secondary market?

On the Cred­it­G­ate24 sec­ond­ary mar­ket, in­vestors can buy and/or sell in­di­vidu­al CPS (cred­it pro­ject shares) that have already been fin­anced be­fore they are fully re­paid. A CPS must still have at least three months to ma­tur­ity when the de­cision to sell is made and it is launched on the sec­ond­ary mar­ket. In gen­er­al, only CPSs can be offered for sale if the cor­res­pond­ing loan has no out­stand­ing pay­ments.

Who can participate in the secondary market?

The Cred­it­G­ate24 sec­ond­ary mar­ket is open to all re­gistered users of Cred­it­G­ate24.

Who determines the price of a CPS on the secondary market?

By de­fault, the pur­chase price is based on the amount, which is still open to the ori­gin­al in­vestor at the time of the sale. However, the seller is free to de­mand a slightly high­er or slightly lower pur­chase price. All rel­ev­ant in­form­a­tion on the CPS is provided to the po­ten­tial new in­vestor/buy­er. In the in­terest of in­vestor pro­tec­tion, Cred­it­G­ate24 re­serves the right to de­lete of­fers with un­real­ist­ic­ally high selling prices from the sec­ond­ary mar­ket. For this pur­pose, the buy­er yield of the CPS offered in the sec­ond­ary mar­ket is com­pared with a new loan with the same or sim­il­ar spe­cif­ic­a­tions.

How is a sale or purchase processed on the secondary market?

Lenders who would like to sell one or sev­er­al in­vest­ments (CPS or cred­it pro­ject share) can enter their re­quest in their on­line cock­pit. As soon as a buy­er is found and the pur­chase price is paid, the CPS is trans­ferred and the seller re­ceives the money.

How much does the CreditGate24 secondary market cost?

The Cred­it­G­ate24's sec­ond­ary mar­ket for cred­it shares (CPS) is made avail­able to in­vestors free of charge. Cred­it­G­ate24 does not charge a com­mis­sion for the trans­ac­ted cred­it pro­ject share (CPS). In­vestors con­tin­ue to pay the in­vestor ser­vice fee of 1% on all re­pay­ments of a CPS, in­clud­ing any CPS bought or sold on the sec­ond­ary mar­ket.

What happens to the borrower's amortization and interest payments, which are transferred during the sales process?

In­vestors who have entered a CPS sell or­der will con­tin­ue to re­ceive all amort­iz­a­tion and in­terest pay­ments of the bor­row­er un­til the time a buy­er pur­chases the CPS. Pay­ments re­ceived from this point in time will be paid after suc­cess­ful com­ple­tion of the sale to the buy­er. The pur­chase price is ad­jus­ted ac­cord­ingly so that the pur­chase price charged in each case cor­rectly re­flects the cash flows. In case the sale falls through, all cash flows go to the seller.

How are late payments or defaults handled during a secondary sale?

Cred­it pro­ject shares with late pay­ments or de­faults are re­moved from the sec­ond­ary mar­ket and can­not be bought or sold.

Are there any restrictions on the sale of a CPS (credit project share) on the secondary market?

A CPS can not be sold if an in­stall­ment pay­ment of the bor­row­er had to be re­minded at the time of the sale.

Recovery

How do we define recovery?

By re­cov­ery, we mean all meas­ures that serve to re­duce pay­ment de­faults or re­duce the cred­it debt. The re­cov­ery pro­cess be­gins when re­mind­ers have not res­ul­ted in the ex­pec­ted pay­ment.

What happens if a borrower does not pay his instalment?

A pay­ment re­mind­er will be sent to the debt­or on the third day after the due date. Af­ter­wards, a first and a second dun­ning let­ter will fol­low if ne­ces­sary.

Will investors be informed about payment irregularities?

We in­form in­vestors about pay­ment delays and the meas­ures that have been ini­ti­ated. The first no­ti­fic­a­tion is giv­en when in­stal­ment col­lec­tion has been in­stig­ated. In ad­di­tion, in­vestors can find out about delayed pay­ments in the In­vestor Cock­pit un­der the menu item "In­vest­ments".

What happens if the borrower does not respond to the instalment reminders or does not pay the instalment?

We ini­ti­ate debt col­lec­tion for the monthly in­stall­ment due.

Does CreditGate24 have the right to cancel the credit if the debtor does not pay his instalments?

If a loan is sub­ject to the Fed­er­al Law on Con­sumer Cred­it (loans to private in­di­vidu­als up to CHF 80'000), Cred­it­G­ate24 may only ter­min­ate the loan if the out­stand­ing in­stal­ments reach at least 10% of the loan amount.

For all oth­er loans Cred­it­G­ate24 has the right to ter­min­ate the loan in case of de­fault. We base this de­cision on the best in­terests of our in­vestors.

Are reminders associated with costs for the borrower?

Yes, for re­mind­ers a con­tri­bu­tion to­wards our ex­penses will be charged. The re­mind­er fees are lis­ted in our  fee overview  . 

When is a loan described as irrecoverable?

The ir­re­cov­er­ab­il­ity is de­term­in­ed by Cred­it­G­ate24 if all meas­ures taken to re­pay the debt have been un­suc­cess­ful. This is usu­ally the case after re­ceipt of a loss cer­ti­fic­ate.

Does an investor lose his investment if a loan in which he has invested is found to be irrecoverable?

No. In this case the joint and sev­er­al li­ab­il­ity comes in­to ef­fect. All in­vestors who have in­ves­ted in the same type of loan and the same rat­ing level jointly and sev­er­ally as­sume a share of the loss in­curred.

How is the amount of joint and several liability calculated?

The de­faul­ted loan amount (in­clud­ing the costs of leg­al ac­tion) is set in re­la­tion to the total loan amount of the en­tire loan type and rat­ing level. The res­ult­ing per­cent­age is used to cal­cu­late the sol­id­ar­ity premi­um.

Ex­ample:

De­faul­ted loan amount in­clud­ing costsCHF 7’500
Total for cat­egory/rat­ing levelCHF 1'200’000
De­fault in %0.63%

Each in­vestor in the same cred­it cat­egory/rat­ing level is now charged 0.63% of the cap­it­al bal­ance of his in­vest­ment(s).

How are the solidarity contributions charged?

The cal­cu­lated sol­id­ar­ity con­tri­bu­tions are de­duc­ted from the next pay­ment for an in­vest­ment in the re­spect­ive loan type and rat­ing level.

What happens with loss certificates?

Claims from loss cer­ti­fic­ates can be as­ser­ted for 20 years. De­pend­ing on its as­sess­ment, CG24 will at­tempt to sell loss cer­ti­fic­ates or man­age them.

What happens to any proceeds from loss certificates?

These are re­im­bursed to the in­vestors in pro­por­tion to the sol­id­ar­ity con­tri­bu­tions made at the time. If the amounts are min­im­al, the amount is trans­ferred to a char­it­able in­sti­tu­tion.

Who is liable in the default of a loan in case of pending secondary market sales?

The seller is li­able for a de­fault of a loan of the same loan type and rat­ing cat­egory re­lat­ing to the as­set un­der sale un­til the as­set is fully trans­ferred (re­ceipt of the pur­chase price for the as­set by CG24).

Rating and Credit Approval Process

What is the rating system?

What is risk optimization through the solidarity arrangement?

To min­im­ize the ef­fect of a loan de­fault, Cred­it­G­ate24 util­izes risk-pool­ing by way of a solid­ar­ity ar­range­ment. This meth­od al­lows in­vestors to achieve max­im­um pos­sible risk di­ver­si­fic­a­tion, without hav­ing to in­vest in nu­mer­ous of cred­it pro­jects. Des­pite the se­cur­ity meas­ures we em­ploy, a de­fault is still pos­sible and re­cov­er­ing your in­vest­ment may prove to be un­suc­cess­ful. If a bor­row­er de­faults on a loan, the loss will be al­loc­ated pro­por­tion­ally to all in­vestors in the same rat­ing grade. This means that each in­di­vidu­al in­vestor is min­im­ally af­fected by a loan de­fault, and the ex­pec­ted re­turn can be best pos­sible se­cured. Non­ethe­less, Cred­it­G­ate24 re­com­mends that in­vestors in­vest in vari­ous cred­it pro­jects be­cause while one auto­mat­ic­ally par­ti­cip­ates in the solid­ar­ity ar­range­ment by vir­tue of be­ing an in­vestor, it can take a couple of weeks to re­ceive the solid­ar­ity sur­charge. This is why Cred­it­G­ate24 presents both a base re­turn and an ad­di­tion­al re­turn; the ad­di­tion­al re­turn refers to the ex­pec­ted de­duc­tion in the event of a loan de­fault.  In gen­er­al, for rat­ing levels of AAA (SME and Private), the ex­pec­ted loss by col­lat­er­al is close to 0%. Nev­er­the­less, Cred­it­G­ate24 can­not guar­an­tee re­turns or pre­vent any loan de­faults. However, Cred­it­G­ate24 makes every ef­fort to make our users’ ex­per­i­ence a pos­it­ive one.

What is death risk insurance?

De­pend­ing on the loan, the bor­row­er takes out death risk in­sur­ance cov­er­ing a the­or­et­ic­al re­sid­ual debt de­fault of CHF 100'000. The spe­cif­ic cir­cum­stances of the bor­row­er must be taken in­to ac­count and may res­ult in re­stric­tions on the in­sur­ance be­ne­fits.

What does solvency check mean?

Be­sides util­iz­ing data from in­tern­al and ex­tern­al sup­pli­ers for cred­it stand­ings, Cred­it­G­ate24 uses in­form­a­tion of en­force­ment, Big Data Ana­lyt­ics, so­cial me­dia, re­search, and spe­cif­ic cla­ri­fic­a­tions re­gard­ing the bor­row­ers.

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