Frequently Asked Questions
About 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.
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.
CreditGate24 receives a fee for quality control, platform use and support during the term of the loan from investors and borrowers. The fee for borrowers is a one-time fee of 1 - 5.5% of the loan amount received, depending on the term and the product, and an additional 1% periodic service fee for real estate loans. Investors are charged a fee of 0.25 - 2.726% on the actual repayments (including amortisation, interest payments) made by the borrower to the investor, depending on the term, rating and product.
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.
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 )
CreditGate24 uses the new QR invoice standard for claiming investment amounts and credit rates/refunds. As a CreditGate24 customer you can also conveniently pay the bills via Debit Direct (Postfinance) or LSV (other banks). You can activate this function in your profile.
If you have any problems with the payment of our QR invoice, you can also make a bank payment. If so, please use the following details:
Bank: PostFinance AG, 3030 Bern
BIC: POFICHBEXXX
IBAN: CH50 0900 0000 6137 9448 8
Payment to: CreditGate24 (Switzerland) AG, 8803 Rüschlikon
Important: Please make the bank transfer by quoting the customer or reference number as stated on the invoice.
Borrowers Private
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.
Applying for a loan is quick and intuitive:
- Before registration, you can already calculate the monthly rate for your desired loan depending on the amount and the term.
- After registration, you submit the data required for the credit check
- Once the information is received and analysed by CreditGate24 you will receive a concrete credit proposal tailored to your needs from our credit specialists
- Once you have signed the credit project, we will published your loan project anonymously for investors on CreditGate24
- 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.
You will pay a fixed monthly instalment, comprised of your individual yield and the amortisation of the loan.
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.
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.
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.
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
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.
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
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
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)
You will pay a fixed monthly instalment, comprised of your individual yield and the amortisation of the loan.
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.
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.
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.
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.
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
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.
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
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.
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.
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.
The borrower benefits from a product that exactly meets his needs. Short term, quick decision, targeted liquidity improvement, no amortization.
An early credit repayment is not possible.
- 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
Yes, the SME short term loan is a separate type of credit with its own solidarity agreement between investors of the same rating level.
No. This is not possible due to the short term.
Investors
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.
CPS refers to the investors' quota in a current loan project. A CPS is defined by the amount, term, interest rate, and credit rating.
The minimum amount per loan project is CHF 500.-
Once we verify your information, your account will be activated, and you can start gaining great returns through the following steps:
- 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.
- You select a credit project based on your preferences.
- You enter the amount you want to invest in the chosen credit project.
- You click the button "Investment Confirmed. Legally Binding.”
- 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.
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.
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.
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).
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).
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.
Gross return is the earnings before deduction of the investor service fee and statistically expected defaults.
Maximum net yield is the yield calculated after service fees are deducted without considering the probability of default.
Expected net yield is the yield calculated after service fees are incurred while including the probability of default.
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.
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.
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
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.
Net income comprises all interest and other income received to date less all encumbered solidarity contributions. The investor service fee is not reflected.
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: 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
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.
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.
The CreditGate24 secondary market is open to all registered users of CreditGate24.
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.
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.
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.
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.
Credit project shares with late payments or defaults are removed from the secondary market and cannot be bought or sold.
A CPS can not be sold if an installment payment of the borrower had to be reminded at the time of the sale.
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.
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.
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".
We initiate debt collection for the monthly installment due.
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.
Yes, for reminders a contribution towards our expenses will be charged. The reminder fees are listed in our fee overview .
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.
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.
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 costs | CHF 7’500 |
Total for category/rating level | CHF 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).
The calculated solidarity contributions are deducted from the next payment for an investment in the respective loan type and rating level.
Claims from loss certificates can be asserted for 20 years. Depending on its assessment, CG24 will attempt to sell loss certificates or manage them.
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.
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
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.
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.
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.