Credit & Crowdlending Glossary

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 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.

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

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.

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.

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).

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.

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 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.

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.

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?»

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

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.

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.