How Does Crowdlending Work? Everything You Need to Know
Crowdlending — also known as peer-to-peer lending or P2P lending — has revolutionised the financial world in recent years. Instead of borrowing money from a bank, borrowers receive their capital directly from a group of private and institutional investors. Cashare is Switzerland's oldest and one of its leading crowdlending platforms.
What Is Crowdlending?
Crowdlending refers to the lending of money via an online platform, where multiple investors jointly finance a loan. The platform acts as an intermediary: it checks the creditworthiness of borrowers, sets interest rates, and manages the entire process.
The model benefits all parties: - Borrowers often get better terms than at banks - Investors earn attractive returns on their capital - The platform earns through fees on both sides
The History of Crowdlending in Switzerland
Cashare was founded in 2008, making it Switzerland's first crowdlending platform. Globally, Zopa (founded in 2005 in the UK) is considered the pioneer of the segment. Since then, the model has developed rapidly: today, loans worth millions are arranged via Cashare annually.
How Crowdlending Works at Cashare — Step by Step
#### Step 1: Registration and Application
Borrowers register for free at [cashare.ch](/kredit-beantragen/privatkredit) and fill in a digital application form. This includes: - Desired loan amount (CHF 1,000 – CHF 250,000) - Purpose of use - Term (1 – 60 months) - Personal and financial details
#### Step 2: Credit Check
Cashare comprehensively assesses the applicant's creditworthiness: - ZEK query: Query with the Central Credit Information Office - Proof of income: Salary slips or tax assessment - Debt enforcement register extract: Check of outstanding debt enforcement proceedings - Household budget: Calculation of financial affordability
Based on this data, the borrower is assigned a credit rating class A to F. Class A represents excellent creditworthiness and receives the most favourable interest rates.
#### Step 3: Loan Listing on the Platform
After successful verification, the loan is listed on the platform. Investors can view the project and invest amounts from CHF 500. Typically, a loan is co-financed by several investors — which reduces the risk for each individual.
#### Step 4: Full Funding
Once the loan is 100% covered by investors, the contract is concluded. For attractive credit classes, this can happen within hours; for riskier projects, it takes a little longer.
#### Step 5: Disbursement
The loan amount is transferred to the borrower's account after signing the contract. The entire process is handled digitally and securely.
#### Step 6: Monthly Repayment
The borrower pays a fixed monthly instalment covering interest and principal. This is automatically processed and distributed proportionally to investors.
What Happens in Case of Default?
Cashare has a professional collections procedure. In case of payment delay, reminders are first sent, followed by external debt collection. Investors bear the risk of default, which is why spreading investments across many projects is recommended.
Crowdlending for Investors
Those wishing to [invest in crowdlending](/investieren/privatinvestoren) register as an investor on Cashare. Investments can be made from CHF 500 per project. Historical returns range from 2% to 8% p.a. depending on the risk class.
Difference from Crowdfunding
Crowdlending is often confused with crowdfunding. The key difference: - Crowdlending: investors get their money back — plus interest - Crowdfunding: investors receive a product, shares, or only an idealistic return
Is Crowdlending Safe?
Cashare is regulated and complies with all legal requirements. The credit assessment according to KKG standards protects investors from excessive risks. Nevertheless: as with any investment, there is no guaranteed outcome.
Conclusion: Modern Financing Without Detours
Crowdlending is a transparent, fair, and often cheaper alternative to the classic bank loan. Cashare makes the process simple and digital — for borrowers and investors alike.