Fragen und Antworten

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 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.

What are my benefits as an investor?

Investors can invest individually in different credit projects with very attractive risk-return profiles (credit rating grades). 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 credit suppliers. Investors and borrowers benefit equally from our cost-saving strategies. The security of our investors’ investments is CreditGate24’s top priority. We guarantee this security through the following measures:

  • Every credit project must go through a strict and elaborate credit risk check
  • In case of death, the residual debt balance (up to CHF 100’000) is ensured for all rating categories and will not be transferred to the heirs.
  • We practice loan default pooling, wherein the effect of a loan default on single investors is minimized by distributing the effect of the loan default to all investors within the same rating grade
  • Strict supervision of all payment streams and systematic claims management.

Despite these efforts, the possibility of risk remains.  Therefore, we recommend you split your investments into projects with different credit rating grades.

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