Crowdlending: Credit without banks

Money from the crowd

Crowdlending is a crowdfunding model that allows supporters to lend money to companies or private individuals and later receive it back in payments with interest.

Crowdlending, also known as peer-to-peer (P2P) or social lending, gives supporters the opportunity to lend money to companies or individuals and earn interest on it. The amount of interest typically depends on the risks associated with the loan. The advantage for companies is that they can access capital without the need for traditional financial intermediaries such as banks, which may or may not be open to lending smaller amounts of money to SMEs without substantial revenues. With the help of this Crowdlending, it is possible to obtain loans at attractive interest rates and the whole process can be less complicated than with banks.

The International Beer Bar raises CHF 102’000:

On our platform, Zurich’s first craft beer bar, The International, raised 102’000 francs for a renovation that allowed them to improve the comfort for guests and put in more efficient cooling systems that improved the quality of the beer while minimising the loss of inventory. They offered 4.5% interest and a 20% discount on tap beer to investors lending over CHF 5’000. Nineteen customers found this an attractive deal and supported the project. The bar also did a good job of communicating with their investors via their website and social media.

Strong growth for Swiss Crowdlending

Of the various forms of Crowdfunding, Crowdlending has grown the fastest in Switzerland since 2015. Compared to the previous year, borrowed sums increased by 126% to CHF 7.9 million, according to the Crowdfunding Monitoring Switzerland 2016 report of the Lucerne University of Applied Sciences and Arts. The reason for this massive increase is that new platforms have been set up to support SMEs.

Do you or your business need a loan? Register and apply for a credit line with 3CF today and borrow on your own terms.

Source: Study “Crowdfunding Monitoring Switzerland 2018” by the Lucerne University of Applied Sciences and Arts