December 6, 2024 | Cashare Team
We are pleased to introduce a significant expansion of our offering: Effective immediately, we offer flexible interest payment structuring for bullet loans. This new feature creates advantages for both borrowers and investors.
What’s new?
Previously, interest on bullet loans was only due at the end of the term, along with the repayment of the principal. From now on, you as an investor can benefit from the following new payment intervals:
- Monthly , quarterly or bullet interest payments.
This reduces the financial burden on borrowers at the end of the term, while simultaneously allowing investors to receive regular interest payments throughout the term. This innovation also enables better monitoring of loan repayments.
How does it work?
- Interest payments are made according to the selected interval (monthly, quarterly, or at maturity). This is displayed in the „Interest Due Date“ column for the loan project.
- Example: For a loan of CHF 1 million with an interest rate of 12%, a term of 12 months and quarterly interest payments, investors receive a total payout of CHF 30,000 every three months, proportional to the invested amount.
Key benefits:
- Greater security: If interest payments are not made, legal action can be taken promptly.
- Better planning: Regular interest payments ensure a consistent return.
- Flexibility for borrowers: Allows for longer terms and reduces the burden at the end of the term.
What stays the same?
- Bullet loans remain an attractive option for SME financing.
- The existing model with a one-time interest and repayment at the end of the term remains available.
This adjustment is a further step towards aligning our offering even better with the needs of borrowers and investors.
If you have any questions, please feel free to contact us at +41 41 588 48 88 or support@cashare.ch . Thank you for being part of the Cashare community and actively contributing to our ongoing development!
Your Cashare team
