Frequently Asked Questions

About CreditGate24

What are the fees at CreditGate24?
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)

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.

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 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 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.

Investors

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.

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 “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"?

Expected gross return is the return on investment calculated before service fees are incurred while considering probability of default.

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.

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 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).

Which fees do I pay as an investor?

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).

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 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 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 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.

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.

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.

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.

Welche Gebühren bezahle ich als Anleger?

Sie können sich kostenlos als Anleger registrieren und in Kreditprojekte investieren. CreditGate24 berechnet Ihnen lediglich eine Gebühr von 1% auf die konkret an Sie ausbezahlten Beträge (Amortisation und Zins).

What are the investment conditions to invest in a SME short term loan?

A direct debiting system (LSV + / Debit Direct) is required for investments in SME short-term loans CPS. Without LSV, the system is not possible.

Borrowers Private

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.

Can investors see my personal details?

On CreditGate24's platform, your personal information—name, address, and email address—is not published.  Only statistical values of age, gender, and nationality are visible. CreditGate24’s top priority is our clients’ privacy.

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.

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.

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
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
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)

Borrowers SME

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.

Can investors see my personal details?

On CreditGate24's platform, your personal information—name, address, and email address—is not published.  Only statistical values of age, gender, and nationality are visible. CreditGate24’s top priority is our clients’ privacy.

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.

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.

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
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
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)

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.

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

CPS (credit project shares) can be sold or bought on the secondary market. A sale of parts of a CPS is not possible.

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.

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 secondary market is offered free of charge to all lenders. CreditGate24 does not charge a commission for the transacted credit project share (CPS). As with all investments, lenders pay the full 1% service charge on all repayments of a CPS, including for CPS bought or sold on the secondary market.

Who determines the price on the secondary market?

As a standard, the principal amount that is not yet paid back is set as the initial secondary market price. Sellers are free to enter a slightly higher or lower asking price. A sale is only completed once a buyer for the respective asking price is found.

Who can participate in the secondary market?

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

What can be offered on the secondary market?

Lenders can offer their existing credit project shares (CPS) on the secondary market before the end of their official term.

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.

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 insurance in case of death?

In case of death, the residual debt balance (up to CHF 100'000) is ensured by Generali for all rating categories and will not be transferred to the heirs.

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.