Credit & Crowdlending Glossary

Interest that has accumulated on a loan up to a specific date but has not yet been paid out. Relevant when buying and selling loan assignments on the secondary market — the buyer compensates the seller for interest accrued since the last payment date.

Regular payments made for the financial support of another person — typically children or a divorced spouse. Counted as an expense in the KKG budget assessment and reduce the applicant's available income.

Swiss Federal Act on Combating Money Laundering and Terrorist Financing. Cashare is affiliated with the self-regulatory organisation SRO Polyreg.

Regular repayment of a loan amount over a defined period. Each instalment of an amortising loan contains a repayment portion and an interest portion.

Legally required interest rate for comparing consumer loans — includes all costs: interest, fees, and charges.

Fixed regular payment of equal amounts that contains both an interest and a capital repayment component. As the loan balance decreases, the interest portion shrinks and the repayment portion grows.

Transfer of a claim from one creditor to another. Each investor receives an individual assignment agreement for their financing share upon completion of funding.

A feature that automatically invests in loan projects matching predefined criteria (rating, interest rate, term, collateral) until the target portfolio size is reached.

Investors place bids on loan projects during the funding phase, committing to provide a specified amount at the stated interest rate.

A person or company that takes out a loan via the Cashare platform. Private borrower: natural person (subject to KKG). Business borrower (SME): company (not subject to KKG).

A short-term loan to bridge a temporary financing gap. At Cashare, SME bullet loans (up to 12 months) are frequently used as bridge financing.

A loan type where the principal is repaid in one lump sum at the end of the term. Only interest is paid during the loan period.

Cashare's internal creditworthiness assessment from A (very low risk) to F (high risk). Based on income, ZEK data and debt collection register.

All incoming and outgoing payments in connection with a loan or portfolio. The loan cash flow on Cashare includes the investment amount, fees, amortisation and interest components, and secondary market transactions.

Assets pledged as security for a loan that can be realised in case of default. At Cashare: real estate mortgage, guarantee, global assignment, cryptocurrencies.

By continually reinvesting received interest, you earn interest on interest, causing the portfolio to grow exponentially over time. At Cashare: reinvest repayments immediately into new loan projects.

Digital or virtual currencies based on blockchain technology (e.g. Bitcoin, Ethereum). Cashare accepts selected cryptocurrencies as collateral for Lombard loans, held in custody by pro aurum AG.

Swiss Federal Act (SR 221.214.1) protecting consumers from over-indebtedness: creditworthiness check, ZEK reporting obligation, 14-day right of withdrawal. Cashare is fully KKG-compliant.

A loan for private individuals for consumption purposes (vehicle, holidays, renovation, education). Subject to the Consumer Credit Act (KKG).

Legally binding contract specifying all loan conditions (amount, term, interest rate, repayment schedule). KKG-subject loans require QES signature or postal signature.

Evaluation of whether a borrower is creditworthy. Cashare checks identity (KYC), ZEK, income documents and solvency. Result: Cashare Rating A–F.

A bank licensed under the Swiss Banking Act (BankG). Cashare is not a credit institution but a financial intermediary under Art. 2 Para. 3 AML Act and a licensed lender under the KKG.

The totality of all loan positions held by an investor on the Cashare platform. Recommendation: at least 30 projects for optimal diversification.

A financing project published on the Cashare platform that investors can bid on.

The monthly payment consisting of repayment + interest (+ optional PPI premium). Remains constant throughout the term for instalment loans.

Replacing an existing loan with a new one — usually at more favourable conditions. Bank loans can be replaced with Cashare loans.

Umbrella term for crowd-based financing: crowdlending (loan brokerage), crowdinvesting (equity) and crowddonating (donations). Cashare operates exclusively in crowdlending.

Direct lending between investors and borrowers via an online platform without a traditional bank as intermediary. Cashare is Switzerland's first crowdlending platform (since 2008).

The risk that a borrower cannot meet their obligations and investors suffer losses. Diversification across at least 30 projects significantly reduces this risk.

Direct lending to companies or private individuals via a platform without a bank intermediary.

Risk reduction through spreading investments across many different borrowers. Cashare recommends at least 30 projects.

The method used to calculate the number of days in a loan term relative to the length of a year. In Switzerland: 30 days per month / 360 days per year (also known as «30/360»).

Interest charged for extending a payment deadline (deferral/forbearance) when a borrower enters into a payment arrangement and is temporarily unable to make regular instalments.

Repayment of a loan before the agreed maturity date. At Cashare KKG loans: CHF 150 fee. Non-KKG: 2% of outstanding balance.

Financial Technology — companies using technology to improve financial services. Cashare is one of Switzerland's first FinTechs (founded 2008).

A loan for companies. At Cashare, business loans are offered under the term «SME Loan».

The phase during which a published loan project is financed by investors — from publication until full funding (100%) or expiry of the deadline.

A security arrangement in which a company assigns all current and future receivables to a creditor. Available as collateral for Cashare SME loans.

Income before deduction of taxes and social security contributions (AHV, IV, ALV). Decisive for the creditworthiness assessment under the KKG.

An agreement where a guarantor undertakes to settle debts if the primary debtor fails to pay. Used at Cashare primarily as security for SME loans.

A hypothetical interest rate (~5%) used to calculate the long-term affordability of a mortgage in Switzerland — regardless of the current market rate.

A loan with a fixed monthly payment comprising interest and principal repayment. The instalment remains constant throughout the term.

Organisations such as funds, pension funds or family offices acting as investors on Cashare.

An annual fee of currently 0.75% p.a. on the outstanding investment balance. It compensates Cashare for operating the crowdlending platform and services on behalf of investors such as monitoring payment flows, sending reminders and initiating debt collection.

The totality of all loan assignments held by an investor on the Cashare platform. Includes active, completed and defaulted investments and their cash flows.

The cost of borrowed money expressed as a percentage per year. For borrowers: a cost. For investors: a return.

The percentage rate that a borrower pays or an investor receives. Cashare shows both nominal and effective annual interest rates. Personal loans: 4.4–9.9% p.a., SME: 5.9–14.9% p.a.

Annual statement of paid/received interest for tax purposes. Generated automatically in the Cashare portal at end of January each year.

Annual average return for a series of cash flows. In a portfolio, the IRR is aggregated as XIRR.

Legally required customer identification process. Cashare verifies all members via video identification or by post.

Legal term for credit. At Cashare, after granting the loan, the claim is assigned to investors.

The agreed duration of a loan from disbursement to full repayment. Cashare: personal loans 1–60 months, SME loans 1–60 months, short-term loans 1–36 months.

The maximum loan amount based on the value of pledged collateral (e.g. real estate), expressed as a percentage of the asset value.

A document confirming the uncovered portion of a debt following completed debt collection proceedings in Switzerland. A loss certificate means the debtor is currently unable to settle the claim.

The principle that assets used as collateral are valued at the lower of their acquisition cost or current market value. Relevant for the valuation of collateral such as cryptocurrencies or real estate.

A request to provide additional collateral when the value of pledged assets (e.g. cryptocurrency) falls below a defined threshold.

Lending brokered via a digital marketplace platform, directly connecting investors and borrowers.

Financing positioned between debt and equity — higher risk and higher return than senior debt. Cashare offers mezzanine financing for real estate projects.

A loan secured by real estate. In case of default, the property can be realised. Cashare offers mortgage loans (Hypo-Loans).

Income after deduction of taxes and social security contributions. Used to assess monthly loan affordability.

The agreed 'pure' interest rate without consideration of costs or inflation. Differs from the effective rate.

A loan where the borrower has permanently stopped making payments. Distinction: arrears (temporary) vs. default (permanent → loss certificate).

The remaining amount of a loan still to be repaid. Decreases with each monthly instalment for an instalment loan.

The portion of the original loan amount not yet repaid. Calculation: original investment amount minus amortisation payments made. Relevant when trading loan assignments on the secondary market.

Direct lending between private individuals via an online platform without a traditional bank. Cashare has been Switzerland's first P2P platform since 2008.

Partial loss: part of invested capital is unrecoverable. Total loss: entire invested amount defaults. Diversification significantly reduces portfolio loss risk.

A borrower's track record of on-time, late or missed payments. Directly influences the Cashare Rating and ZEK entries.

A loan for private individuals. At Cashare: CHF 1,000 to CHF 500,000, 1–60 months, for holidays, vehicle, education, renovation, refinancing.

On the secondary market, a loan assignment can be offered at a markup or markdown. Premium: sale price above the outstanding principal. Discount: sale price below the outstanding principal (attractive for buyers).

The market on which loan assignments are first issued and sold to investors. A reviewed loan project is listed for funding on the primary market.

Non-exchange-traded corporate loans — an asset class for institutional investors such as pension funds and family offices. Cashare enables private debt investments via its crowdlending platform.

Optional insurance for borrowers on Cashare. Covers monthly loan instalments in the event of death, permanent disability or involuntary unemployment. Insurance partner: AXA. The premium is charged monthly as part of the loan instalment.

Inflation-adjusted interest rate. Simplified: nominal rate minus inflation rate.

Investing received interest and repayments into new loan projects to maximise returns through compound interest.

Profit from an investment as a percentage of capital invested. At Cashare: 4%–12% p.a. depending on risk profile.

The legal right to withdraw from a contract within 14 days without giving reasons. Applies to all consumer loans under the KKG.

The subjective willingness to take on risk. Key question: «How well do I sleep after taking on this risk?»

The objective financial ability to take on risk. Key question: «How much can I lose without compromising my standard of living?»

Classification of a loan by default risk. At Cashare, the risk class corresponds to the Cashare Rating (A = lowest risk to F = default). A higher risk class comes with a higher interest rate as a risk premium.

The Swiss overnight reference interest rate, successor to CHF LIBOR since 2022. Serves as a benchmark for comparing loan conditions. Cashare loans carry fixed interest rates — SARON is not directly applied.

A marketplace on the Cashare platform where existing loan positions can be sold to other investors.

A bullet loan with a term of up to 12 months. Only interest is paid during the term; the full principal is repaid in a single payment at maturity. Frequently used by SMEs to cover short-term liquidity needs.

A simple loan for short-term financial needs, generally under CHF 37,000. Regulated by the Consumer Credit Act (KKG).

A loan for small and medium-sized enterprises. At Cashare: CHF 1,000 to CHF 5,000,000, term 1–60 months.

A loan granted without collateral, based solely on the borrower's creditworthiness. Personal loans at Cashare are typically unsecured.

The degree of fluctuation in investment returns. In crowdlending, volatility is low compared to equities.

Late payment of an amount due. At Cashare: overdue payment triggers reminder → pre-legal collection → debt collection proceedings. Payment arrears are reported to ZEK.

An external partner who refers clients to the Cashare platform via the Agent Portal. Internally referred to as «Agent»; in client-facing communication as «Vermittler» (broker).

Tax levied directly at the source of income (interest, dividends). In Switzerland, applies mainly to people without a settlement permit.

Swiss anticipatory tax on interest, dividends and lottery winnings. Can be reclaimed upon correct declaration in the tax return.

Extended Internal Rate of Return — effective annual return of a portfolio for irregular payment dates. Cashare's standard return metric for investors.

Swiss database for credit histories of individuals and companies. Cashare is a member and must report all credit activity above CHF 1,000.