- Transparency to invest in what you want with whom you want.
- 3CF provides identification and verification of all authorised individual/business borrowers and assigns them an indicative credit rating based on their credit rating with other reputable agencies.
- 1st come-1st served – fund what you see on the platform.
- Opportunity to invest in multiple loans at the same time or multiple times in a single loan.
- 3CF offers an autoinvest function for automatic bidding.
- The Secondary Selling Market allows you to buy and sell loan parts.
- 3CF allows for the electronic signature and exchange of contracts.
- 3CF manages and apportions monthly payments to lenders.
FAQs about Crowdfactoring
Who is eligible to apply for a Crowdfactoring loan?
Crowdfactoring is only available to businesses registered in Switzerland.
Will I get a refund of my listing fee if my application for a loan is not posted on the 3CF platform?
Business borrowers will receive a 50% refund if not listed on the platform.
How long does it take to process a Crowdfactoring loan application?
Crowdfactoring loan applications take approximately 2 working days to process.
How often can I apply for a Crowdfactoring loan with 3CF?
Businesses can apply for both Crowdlending and Crowdfactoring loans multiple times and have several loans running simultaneously.
Can I remain anonymous on the 3CF platform for Crowdfactoring loans?
For transparency reasons, businesses cannot remain anonymous to registered users on the platform.
Can users on the platform communicate with each other?
Yes, registered members can contact each other before and during the bidding process on the platform. After the loan bidding has closed, communication between members is only possible by private contact via their respective dashboard.
How is the credit rating formulated?
3CF analyses information provided from 3 credit checks agencies (Creditreform, Bisnode and CRIF). This information, together with other personal details, enables 3CF to formulate and assign an indicative credit rating concerning all loan applications.
What are the minimum and maximum Crowdlending loan amounts on 3CF?
Businesses can raise 25,000 to 500,000 CHF through Crowdfactoring.
What are the minimum and maximum periods for loan repayment?
Businesses must repay Crowdfactoring loans within a range of 1 to 4 months.
How is the discount rate for Crowdfactoring applicants determined?
On 3CF the loan applicants determine the discount rate on their Crowdfactoring.
What is a Form K?
Business users (borrowers and lenders) must electronically sign and date (via the dashboard) the Form K – Establishing of the controlling person of operating legal entities and partnerships both not quoted on the stock exchange. This form authorises 3CF to accept the funds after the close of bidding and exchange of contracts.
What are the advantages of Crowdfactoring with 3CF?
- 3CF is an alternative social funding channel.
- You have the facility to set your own loan parameters.
- 3CF provides an indicative credit rating to attract investors to the 3CF platform.
- 3CF allows for the electronic signature and exchange of contracts.
- 3CF administers the collection, receipt and distribution of loan repayments to lenders.
What are the advantages of lending with 3CF?
Are the Crowdfactoring loans guaranteed?
Loans on the 3CF platform are not guaranteed. These loans are offered against an unsettled and unsecured invoice (receivable).
What happens if a Crowdfactoring loan request on the 3CF platform is not fully funded?
The loan request will be deleted from the platform and the borrower is more than welcome to apply again.
What happens if a party does not sign the loan agreement?
All parties must sign the Crowdfactoring Loan Agreement contracts within the requested time limits. If one or more of the involved parties does not sign the Crowdfactoring Loan Agreement contract on time, the contract becomes null and void. Thereafter, the Crowdfactoring loan will be published again on the 3CF platform, this reposting attracts no fees.
What happens in the event that a lender does not deposit the funds to back their respective bid?
All lenders must honour their respective bids by depositing the required funds in a timely manner in the 3CF escrow account. If one or more lenders fail to deposit the required funds, all Crowdfactoring Loan Agreement contracts will become invalid – null and void. In this event, all deposited funds will be returned to the originating lenders within 3-5 working days from the voiding of the contract. In this instance, the loan will be reposted on the 3CF platform at no extra charge to the borrower.
When does the borrower need to pay the 3CF service fee?
The entire service fee is deducted from the Crowdfactoring loan amount before the payment is made to the borrower.
When do the lenders need to pay the 3CF service fee?
The entire service fee is payable together with the payment for the lender’s respective Crowdfactoring loan bid.
How is the Crowdfactoring single settlement repayment by the borrower handled by 3CF?
The repayment is deposited by the borrower in the 3CF escrow account. Thereafter, 3CF apportions the respective payment amounts to the appropriate lenders.
Can I pay my Crowdfactoring loan back earlier than scheduled?
Yes, early settlement is possible. The whole remaining outstanding loan amount (principal amount plus remaining interest) can be paid back before the end of the loan term. 3CF does not charge for this service.
What happens if a borrower fails to make the payment on time?
3CF will remind the Crowdfactoring borrower of their respective obligations under the Terms and Conditions. 3CF will send the borrower two reminders and inform the lender if the borrower has failed to make the payment. 3CF will endeavour to get the settlement payment paid without delay.
Is it possible to renegotiate the terms of the loan agreement?
No, 3CF does not allow for Crowdfactoring Loan Agreements to be renegotiated once they are signed.
What is the Crowdfactoring Secondary Market?
Secondary Selling Market is where registered lenders can sell their Crowdfactoring loan parts to other registered lenders on the platform to free up their illiquid loans if the need arises. The Secondary Selling Market is open to registered lenders (both individuals and businesses) who would like to buy Crowdfactoring loan parts from other registered lenders (additionally from both individuals and businesses). Secondary Selling Market enables lenders to sell their loan part, either at cost rate, premium rate, flat fee or at a % discount rate.
Can a lender always sell their Crowdlending loan part?
Yes. For processing reasons, the lender cannot sell their Crowdfactoring loan part less than 10 days before the payment is due.
What is Autoinvest for Crowdfactoring?
Autoinvest enables registered lenders to set-up and automatically fund loans with predefined buying criteria. Autoinvest is open to both individuals and businesses enabling them to invest in Crowdfactoring loans posted on the website.
Last updated: 2018-06-21