Answers to the most important questions

What advantages does CG24 - Business Credit offer me?

CG24 Business Credit offers a quick and easy way to finance Swiss SME companies via a crowdfunding platform. You can choose a flexible financing amount as well as a flexible term. For repayment, we offer various options such as amortisation, bullet lending or a combination of these. CG24 also attaches great importance to clear and transparent pricing.

What products does CG24 offer for companies?

We are constantly working on improving our product range. We currently offer the following products to our SME clients:

• Business loan
• Factoring
• Tailor-made solution for SMEs

Who should I contact if I have any questions?

Your personal customer advisor will be happy to answer your questions and concerns. If you are new to us, please feel free to contact us by phone (044 244 30 22) or by email (business.credit@cg24.com). If you would like us to contact you, you can make a telephone appointment with an account manager here at any time. Click here to view contact form.

What are the minimum requirements for an SME loan?

Your business must be at least two years old and have at least two completed balance sheets and profit and loss accounts.

Unfortunately, we cannot serve companies that do not meet these minimum requirements. Furthermore, we can only accept companies that have an annual turnover of at least CHF 100,000.

What documents do I need to have ready to open an account?

As we need to carry out a successful credit check, we require a number of documents about your company, such as the annual financial statements for the last 2 years and detailed account statements for the last 3 months.

My company is still in the start-up phase. Can CG24 already help me?

Your company must be at least two years old and have at least two completed balance sheets and profit and loss accounts. Unfortunately, we cannot serve companies that do not meet these minimum requirements.

Why is my email address not accepted?

CG24 requires a professional email address as a basic requirement for companies. For example, addresses ending in @hotmail, @bluewin, @gmail etc. cannot be accepted. Feel free to contact us again after creating a new email address online with your company name.

What are the costs for registration?

Registration is free of charge.

What documents do I need to have ready to open an account?

We require a number of documents for a successful credit check. We cannot grant financing to companies that do not provide us with any documents.

The following documents must be provided by clients:

• Annual financial statements for the last 2 years.
• Bank statements for the last 3 months.
• Other documents that are relevant from the client's point of view (e.g., order confirmations, contracts, invoices).

Further information besides what is listed above may be required for credit assessment. Your account manager will contact you if necessary.

How long does it take to create an account?

It takes no more than five to ten minutes to create your profile on CG24. Your profile will then be checked before it can be verified.

How do I create an account with CG24?

Click here to view registration

How does identification work on the platform?

CG24 identifies all users by video verification.

The verification process is carried out by IDNow GmbH. This process takes approximately five minutes. Please note that CG24 currently only accepts ID cards or passports from Switzerland, the European Union, Turkey, Norway and Iceland.

If a person not authorised to register on behalf of an SME registers, a corresponding power of attorney for this person must be submitted. CG24 can provide a template for the power of attorney if required.

Why do I need to identify myself to CG24?

For legal and regulatory reasons, CG24 is required to carry out identification of the potential new client prior to entering into any client relationship.

How is my creditworthiness determined?

Your credit rating and credit limit are calculated based on the financial information about your company. An individual review by our credit specialists then leads to the final decision on your credit limit and credit rating. The decisive factors are qualitative and financial information on creditworthiness and credit standing, external credit reports and other factors such as the possible deposit of collateral.

We apply the highest degree of discretion during this process to ensure that our assessment does not affect your business in any way. In doing so, we do not contact third parties (with whom you do business) or financial institutions.

Why was my credit application rejected?

Profiles that do not meet the following requirements will be rejected by CG24:

• Lack of creditworthiness
• Company does not meet the requirements for using the platform (e.g., no entry in the Swiss Commercial Register, annual turnover of less than CHF 100,000, was founded less than two years ago).
• Other reasons not explicitly listed here (e.g., failure to submit the required documents, falsification of documents, etc.)

However, it is possible to have your profile re-evaluated after three months. If there is a significant change with regard to the reason for rejection, it is possible to have your profile reviewed after 3 months. Please send us an email with your request to the following address: business.credit@cg24.com.

How long does it take to check my credit application?

In most cases, the review is completed within 48 to 72 hours. For complex cases or missing documents, it can take up to a week.

What factors determine my creditworthiness?

The following criteria determine your creditworthiness:

• Company credit reports from external credit bureaus.
• Annual reports for the last 2 financial years
• Bank statements for the last 3 months
• Repayment history within the last 12 months
• Other qualitative factors

Your credit rating ranges from A (lowest risk of default) to E. It determines whether we can grant you access to the platform and what financing conditions you will ultimately receive.

What role does Swisscom play in signing contracts?

CG24 uses Swisscom's QES technology for signing contracts. Swisscom is the official provider of "Qualified Electronic Signature" (QES) technology in Switzerland.

What is a qualified electronic signature (QES)?

The qualified electronic signature (QES) is an electronic signature that is equivalent to a handwritten signature. It makes it possible to sign contracts with formal requirements online.

How can I tell that a document is signed with QES?

A qualified electronic signature can be seen on the cover sheet of the contract. The validity of the signature can be checked directly in Adobe Acrobat Reader or using the government’s online service (www.e-service.admin.ch/validator).

What advantage does QES offer me?

Thanks to QES, contracts can be signed digitally, which leads to faster processing.

How does QES work?

With QES, the signature is created in combination with an identification. Thanks to this identification, the signature can be assigned to exactly one person. Once the identification has been confirmed, the signature is created from a combination of password and SMS.

How long does it take until I have the funds on my account?

All new approved funding requests are offered to our investors on the platform and are usually refinanced within 2-5 days. The pay-out time is determined by the time of complete funding by the investors. We transfer the money to your company during Swiss bank working days no later than 24 hours after receiving the investment funds. As a rule, you can expect payments to be credited to your account within 24-48 hours once we have received the money from the investors.

What are the costs and fees?

Borrowers only pay a fee if a loan is granted. This fee depends on the loan amount, the term and the rating and is defined in detail in the fee table. The fee is either deducted directly from the loan amount upon disbursement or is part of the monthly instalment.

What credit periods are possible?

The credit term is between 1 and 36 months. A longer term may be possible in individual cases.

What is the minimum credit amount?

The minimum credit amount is between CHF 10,000 and CHF 15,000, depending on the product.

In which currencies can the transactions be processed?

All transactions are processed exclusively in Swiss francs (CHF).

How long is the credit limit valid?

The credit limit is subject to annual review. The credit limit is then generally valid again for 12 months, although interim adjustments can be made under certain circumstances.

What does the credit limit mean for me?

The credit limit corresponds to the maximum possible financing potential of a company. The limit can also be divided between different types of financing (minimum amount of financing is CHF 10,000).

How much financing can I receive from CG24?

CG24 provides you with a credit limit after successful registration and credit assessment. Within this credit limit, you can take out one or more business loans with different amounts and terms (the minimum amount of a business loan is CHF 10,000).

The credit limit depends on factors such as qualitative and financial information about your business and external credit reports.

The final credit limit can only be calculated after CG24 has thoroughly reviewed your company.

When is the agreement signed?

Loan agreements are subject to the condition precedent that the loan amount has been financed by investors. Suspensive agreements are only validly concluded when the conditions precedent have been fulfilled.

Which agreements must be signed?

All agreements must be signed by hand or with a qualified electronic signature (QES).

What costs are incurred in the event of late payment?

Default interest will be charged two days after a missed payment date. Notice fees are charged after 14 days and 30 days following a missed payment date.

What if I cannot repay?

Please contact your customer advisor at an early stage if you are experiencing payment difficulties. We will be happy to help you work out a solution tailored to your individual situation.

When do I have to repay the outstanding financing?

The repayment date is agreed in each case when the agreement is concluded and is entered into the loan agreement. The repayment date is based on the disbursement date of the loan from CG24 to you.

Who can invest money with CG24?

In principle, anyone can invest money with CG24 (certain domiciles such as the USA are excluded for legal reasons), although our primary demographic includes investors residing in Switzerland. You must be of legal age and have an account with a Swiss bank. CG24 is subject to the Swiss Money Laundering Act and is obliged to check the plausibility of all payment flows and, where necessary, to clarify the origin of the funds.

What is a Credit Project Share ("CPS")?

The CPS stands for an investor's share in a specific credit project. It is defined by its amount, term, interest rate and rating.

What is the minimum investment amount per credit project?

The minimum investment amount depends on the product and the total loan amount. However, the minimum investment amount is from CHF 500.

How do I invest with CG24?

1. Register and gain access to your personalised free investor cockpit.

2. You will be automatically invited to identify yourself online. This takes place in two steps: firstly, online identification via our partner Swisscom and secondly, bank account verification by means of a one-off transfer of CHF 0.05.

3. Within 24 hours of completing the online identification process, we will inform you that your account has been activated for new investments. You can then select your projects according to your investment preferences.

4. As soon as you have made your investment, you will receive the invoice and the investor agreement. The payment can also be made via LSV+/DD.

Does it matter from which account my deposits come?

Yes, the deposit must be made from a Swiss or Liechtenstein bank account in your name.

How do I receive my earnings?

As an investor, your earnings (interest plus amortisation) are credited directly to your account via CG24 after the transfer by the borrower and transferred to your external reference account (bank or postal account).

What fees do I pay as an investor?

Click here to view the fees

What advantages does the CG24 offer me as an investor?

Investors can invest individually in different credit projects with very attractive risk and return profiles (rating levels). In doing so, you support people and their projects. CG24 brings investors together with borrowers and, thanks to its online structure, saves high costs of traditional loan providers. Both investors and borrowers benefit from these cost savings. The risk for investors is reduced as much as possible through the following measures:

• Every loan is subject to a strict and elaborate risk assessment.
• Depending on the loan, the borrower takes out a death benefits insurance policy that covers a theoretical residual debt loss of CHF100,000. (The borrower's specific circumstances must be taken into account and may lead to restrictions with regard to the insurance benefit).
• The borrower can also take out disability and unemployment insurance (PPI - Payment Protection Insurance or credit default insurance).
• Minimising the impact of a loan default for individual investors by distributing loan defaults among all investors within the same rating level and loan type (loan default pooling).
• Strict monitoring of all payment flows and consistent receivables management.

Since, despite these measures, not all risks can be completely ruled out, we recommend that you spread your investment over different projects in the same rating level or in other rating levels across different types of credit (SME instalment loan, personal loan, SME short-term loan and real estate loan) in order to minimise the risk.

What is the gross yield?

The gross yield is the yield before deducting the investor service fee and the statistically expected defaults.

What does "maximum total repayment" mean?

The maximum total repayment is the repayment after deduction of the service fee, taking into account the current discount level, without considering any potential defaults.

Will I receive a tax statement from CG24?

Yes. CG24 produces a detailed tax statement annually. We recommend that you only include the total amounts in your tax return and attach the printed tax statement. CG24 does not charge any additional costs for the preparation of the tax statement.

What does the amount of the joint and several liability listed in the tax statement mean?

The amount of the joint and several liability listed is the total of the joint and several liability incurred in the tax year, irrespective of the actual debit. The decisive factor is therefore the time when the joint and several liability arises (= time when the joint and several liability is notified) and not when the joint and several liability amount is offset against an instalment repayment.

What does the amount of recoveries listed in the tax statement mean?

Recoveries of defaulted loans (e.g., if a borrower has funds again and CG24 is in possession of a loss certificate, this can be claimed) are paid out to the joint and several liability holders concerned. The amount shows the recoveries paid out in the tax year.

What can I find in the Investor Suite under "Portfolio" in the statistics section?

Your portfolio shows the current status of your investments with the CG24. This figure includes the outstanding capital amount, i.e. the total of your investments less the amortisation payments already made. Also included are the outstanding solidarity payments, which comprise the outstanding solidarity credits less the outstanding solidarity charges for investments since 17 April 2024.

What is the composition of net income?

Net income includes all interest and other income received to date, less any solidarity contributions charged. The investor service fee is not reflected.

How is return determined?

The return shows the effective annual return for your portfolio. It takes into account the amount of capital invested, capital amortisation, interest income, compensation and fees, accrued interest, debits and credits from solidarity contributions and premiums from secondary market transactions. The calculation is based on an internal rate of return (IRR) method that takes into account daily historical as well as expected cash flows.

What does the status of my investment mean in detail?

• Investment: The investor has committed a contribution but the loan is not yet fully funded. The loan is on the CG24 platform until it is fully funded.
• Rejected: The borrower has withdrawn from the agreement within the statutory period.
• Money demand: The loan is fully funded, the investors have received the deposit invoice.
• Loan disbursement: All investors have transferred their shares, disbursement is in progress.
• On time: The borrower has paid all instalments due.
• 1 - 30 days overdue: An instalment is up to 30 days overdue. First measures have been taken.
• 31 - 60 days overdue: An instalment is up to 60 days overdue. Further action has been taken.
• 61 - 90 days overdue: A rate is up to 90 days overdue. Measures have been intensified.
• More than 90 days overdue: An instalment is more than 90 days overdue. Further measures, possibly legal action, have been initiated.
• Early repayment pending: The borrower has exercised his right to early repayment. Repayment is expected within 30 days.
• Repaid early: The borrower has repaid the loan early.
• Terminated: The loan has been repaid in full.
• Sold: The loan has been sold on the secondary market.
• Loan termination: In the event of credit termination, the credit agreement is terminated due to default in payment by the borrower, despite prior debt collection efforts. All outstanding payments become immediately due. The borrower is given a final payment deadline of 7 days. If no payment is made within this period, full debt collection proceedings will be initiated, followed by a technical default.
• Default: The loan has been left as technically defaulted because either the 180-day default limit has been reached or the entire loan has been cancelled and the customer has not paid the debt due on time. The recovery process is still ongoing and can be tracked in the investment tape under the recovery status. Recoveries are transferred to you in the event of a successful recovery process and displayed as recoveries in the cockpit under “Investment status and defaults”.

What does "cash in transit" mean?

"Cash in transit" refers to investment amounts that have already been paid in for investments with the status "capital call" and "loan pay-out". Amounts paid in from investments with the status "investment" are not counted as "Cash in transit".

"Cash in transit" is not part of the portfolio value.

The amount for "Cash in Transit" is updated regularly, regardless of the CG24-wallet.

Why are not all outstanding solidarity payments included in the portfolio calculation?

The investor agreements were updated as at 17.04.2024. From now on, outstanding solidarity payments for these investments will be taken into account in the portfolio calculation. This ensures that all solidarity claims are covered.

Does the CG24-Wallet balance count towards the portfolio value?

No. The CG24-Wallet balance does not count towards the portfolio value.

Where can I track which payments?

All transaction data can be found in the new "Payments" tab. "Investment repayments", "Investment payments" and "Download payments" refer to the transactions in connection with an investment.

"CG24-Wallet payments" and "download CG24-Wallet payments" refer exclusively to your CG24-Wallet payments. The payment of an investment is recognised as a pay-out in the CG24-Wallet. In the investment-related payment, this is booked as a pay-in. The transaction ID links the transactions in the different worlds.

How should I interpret the "CG24-Wallet payments" table?

• Returns from investments: Repayments from investments are regarded as deposits in the CG24-Wallet. These payments increase the amount available.
• Pay-in from bank account: Incoming payments from your bank account to your CG24-Wallet. These payments increase the amount available.
• Total pay-in: Total returns from investments and deposits from bank accounts.
• Paid investments: Payment for investments. These payments reduce the amount available.
• Pay-out bank account: Transfer CG24 wallet credit to your bank account. These payments reduce the amount available.
• Total pay-out: Sum of paid investments and payments to bank account.

How is the interest-based service fee calculated?

The service fee is charged based on interest payments (nominal interest, late payment interest, penalty interest) and is generally 1.3% per annum of the average outstanding investment amount. The exact fee rate is specified in the investor agreement. Depending on the portfolio value, a discount on the service fee may be granted.

Example without discount: Assume you make an investment in a Real Estate product (bullet loan, with interest payments but no amortization during the term) with the following conditions:

• Investment amount: CHF 100,000.00
• Term: 12 months
• Nominal interest rate: 7.250% p.a.

Calculation of the service fee and net return:

The total service fee charged is CHF 1,300.00 (1.3% of CHF 100,000.00).

After considering the fee, a net return of CHF 5,950.00 is achieved.

Who receives a service fee discount?

A discount on the service fee is granted depending on the portfolio value. The exact discount amount depends on the portfolio value and can be viewed in the dashboard. The higher the portfolio value, the greater the discount granted.

How is the service fee discount calculated?

The service fee discount is recalculated every night based on the current portfolio value. The determined discount is applied to repayments the following day. Therefore, the granted discount amount may change with fluctuations in the portfolio value. If the portfolio value increases or decreases, resulting in a change in the discount level, the new discount will be applied to future repayments.

The discount only applies to repayments of investments made from November 21, 2024, onwards.

Example with discount: The investor has a portfolio value with a discount level of 30%.

Calculation of the service fee and net return (30% reduction):

What is the CG24-Wallet and how does it work?

The CG24-Wallet is a virtual "wallet" for investors at CG24. It shows the investor’s current amount in the CG24 flow-through account, which can either be reinvested or paid out to the investor. This is not a bank account in the traditional sense, but a purely virtual representation of the funds.

The CG24 wallet reflects the amount you are entitled to from repaid loans. These funds can either remain on the wallet or be paid out to your deposited bank account. By default, the money remains in the CG24 wallet for up to 58 days after being credited. After that, the amount is automatically transferred to your deposited bank account. This default setting can be changed at any time in the profile settings.

Who can use the CG24-Wallet?

All CG24 investors automatically receive a CG24-Wallet as part of their account. No additional registration or login is required.

As a new investor, you only need to fully identify yourself to be activated for the wallet. Information on online identification has been sent via eMessage.

How can I view the available amount in my CG24-Wallet?

You can view the available amount and all transaction details at any time in your investor cockpit.

How can I make a withdrawal from my CG24 wallet?

Under "My profile" you can either trigger a one-off payout or save the settings for an automatic payout. If you set up an automatic payout, the available amount will be paid out periodically.

If you would like to continue receiving repayments immediately, you can set up an automatic payout with a daily frequency. This means you receive daily bank payments, but bundled into a single transfer.

There are no fees for payouts.

Are there any fees for using the CG24-Wallet?

No, there are no fees for using the CG24-Wallet.

How is the current balance defined in my CG24-Wallet?

The current balance is the effective credit balance in your CG24-Wallet based on the transactions booked. However, this amount cannot be paid out if there are already existing investment commitments or other pending payments. You can pay out the positive available amount.

What are "Pending payments"?

Pending payments include:

• LSV/DD (direct debit) payments that are still outstanding.
• Bank account payments that have not yet been fully processed.
• Non booked investment deposits for loans already financed.
• Non-booked secondary market purchases.

What are "pending investment commitments"?

Pending investment commitments refer to the total of all investments already committed that are still in the ‘Investment’ status. These are theoretical future payment deductions from the current balance. As soon as an investment is fully financed, it is paid if sufficient liquidity is available. Otherwise, the outstanding amount is listed under "Pending payments".

What does "available/owed amount" mean in my CG24-Wallet?

The available amount is the part of the balance in your CG24-Wallet that can actually be paid out. This amount takes into account all existing investment commitments and pending payments.

If the available amount is negative, this represents a position owed. This means that you still have to deposit funds into the CG24-Wallet for investment commitments or secondary market purchases that have already been made. This deposit can be made via the "Add funds" button using a QR-bill or bank transfer. If you have an active LSV/DD, we will do this for you automatically and you do not need to do anything else.

How can I deposit or withdraw money in my CG24-Wallet?

You can manage deposits and withdrawals via "My profile" in the CG24-Wallet.

Payments:

• QR payments: Use the QR code provided to make a payment.
• Bank transfer: Transfer money directly to your CG24-Wallet, taking a message into account.

Payouts:

• Manual one-off payments: You can make manual payments up to the maximum available amount.
• Automatic payouts: Set up automatic payouts with a desired time interval.

There are no fees for either deposits or withdrawals.

If you have a direct debit (LSV/DD), you do not need to make any manual deposits. Just make sure that your bank account has sufficient funds. The amounts owed in the CG24-Wallet are automatically debited via LSV/DD. However, you can still make manual deposits if you want additional credit for new investments.

Where are my investment repayments paid to?

Your investment repayments are first transferred to your CG24-Wallet. If you do not wish to use the money for new investments, it will be transferred to your bank account stored with CG24 in accordance with your repayment preference. After 58 days at the latest, the amount is automatically transferred to the bank account. You can change the IBAN of this bank account at any time under ‘My profile’ in the ‘Bank account’ section. Just make sure that the bank account is in your name.

Does the money in the CG24-Wallet earn interest?

No, the money in the CG24-Wallet does not earn interest. We recommend that you either reinvest the available amount or have it paid out automatically according to your preferences. Otherwise, the money will be automatically transferred to your bank account after 58 days at the latest.

What happens if I make an investment but don’t have enough funds in the CG24-Wallet?

With LSV/DD: The shortfall is automatically debited from your bank account.

Without LSV/DD: You will receive an invoice for the payment of the shortfall. This live invoice serves to settle the wallet amount owed for the investment commitments made and secondary market purchases and not specifically for an individual investment.

What does the CG24-Wallet invoice consist of?

The CG24-Wallet invoice is a live invoice that serves to settle the CG24-wallet amount owed for your investment commitments and secondary market purchases and is not created specifically for an individual investment.

What happens if I have set up a direct debit procedure (LSV) or direct debit (DD)?

If you have set up an LSV or DD:

• Owed amount: If you do not have a sufficient balance in your CG24-Wallet, the missing amount will be automatically debited from your bank account via direct debit procedure (LSV) or Debit Direct (DD) as soon as a loan has been fully funded.
• No manual deposit required: You do not need to make a manual deposit. The missing amount will be debited directly from your bank account as soon as the loan is fully funded.

To activate the LSV, you must download the relevant document under "My profile" and send it to your bank. Activation can take up to 10 working days.

To activate Debit Direct, you must download the relevant document under ‘My profile’ and send it to us. Once we have received the document, we will activate your Debit Direct directly.

When will I receive an invoice or request for payment?

• Automatic settlement with available credit: If you make an investment and have sufficient funds in your CG24-Wallet, the amount owed will be automatically deducted when the loan project is fully funded.
• Invoice if there is insufficient credit: If there are insufficient funds in your wallet at this time, you will receive an invoice for the wallet amount owed by e-mail.
• With LSV/DD: If you have set up a direct debit procedure (LSV) and there are insufficient funds in your CG24-Wallet when the loan is fully funded, the missing amount will be automatically debited from your bank account via Debit Direct (DD) or LSV as soon as the loan is fully funded. In this case, no invoice will be sent as you do not need to make a manual deposit.

How can I use the data in the "CG24-Wallet payments" file?

The "CG24-Wallet payments" file shows all transactions associated with your CG24-Wallet. The transactions are divided into different categories to give you a clear overview:

• CashflowPayIn: Deposit into the CG24-Wallet from the bank account.
• CashflowPayOut: Payout from the CG24-Wallet to the bank account.
• TransferPayIn: Repayment from the investment.
• TransferPayOut: Payment of an investment.

Each transaction has a transaction ID that you can use to make links in the ‘investment payments’ file and to track details of the respective transactions.

What are the "non booked investment deposits" that are displayed when I click on this filter?

The item "non booked investment deposits" shows the investments for which the deposit has not yet been posted.

Note:

Insufficient funds: If your CG24-Wallet does not have sufficient funds to cover these deposits, we will ask you to deposit the missing amount. If you have set up a direct debit (LSV) or direct debit (DD), the missing amount will be automatically debited from your bank account.

How secure is the credit balance in the CG24-Wallet?

The money in the CG24-Wallet is held in an account in the name of CG24 at a Swiss bank. The CG24-Wallet only exists virtually.

Will the CG24-Wallet balance be used to pay outstanding solidarity charges?

No. Solidarity charges will continue to be made on investment repayments, i.e. before they are credited to the CG24-Wallet.

What is the CG24 Secondary Market?

The Secondary Market allows CG24's registered investors to sell their investments (CPS: Credit Project Share / loan shares) before the end of the term and thus recover their loan amount, which has not yet been fully repaid at that time, ahead of time. The secondary market also allows investors to buy a CPS (Credit Project Share) in existing credit projects with a shorter remaining maturity.

What can be offered or bought on the secondary market?

On the CG24 Secondary Market, investors can buy and/or sell individual already financed CPS (Credit Project Shares) before they are fully repaid. A CPS must have a remaining term of at least three months at the time of the decision to sell and the corresponding listing on the secondary market. In general, CPS can only be offered for sale if the corresponding loan has no arrears.

Who is eligible to buy or sell CPS (Credit Project Shares) on the secondary market?

The CG24 Secondary Market is open to all registered investors of CG24.

Purchases can be made immediately after the account has been activated. Consent must be submitted as a document for the sale. You can find the document in your Cockpit under "My profile"/Components/Sale of systems.

Who determines the price of a CPS (Credit Project Shares) on the secondary market?

By default, the purchase price is based on the amount outstanding to the original investor at the time of sale. However, the seller is free to demand a slightly higher or lower purchase price. All relevant information on the CPS will be disclosed to the potential new investor/buyer. In the interest of investor protection, CG24 reserves the right to delete offers with unrealistically high sales prices from the secondary market. For this purpose, the buyer’s return of the CPS offered in the secondary market is compared with a new loan with the same or similar characteristics.

How is a purchase or sale on the secondary market handled?

Investors who wish to sell one or more of their credit shares (CPS) can enter the order to do so in their suite. As soon as a buyer for the offered CPS is found and transfers the purchase price, the CPS is transferred and the seller receives his money. If the buyer does not transfer the purchase price on time, the sale "falls through" and the CPS remains with the original investor. It can be put up for sale again on the secondary market at any time.

What happens to borrower amortisation and interest payments received during the sale process?

Investors who have recorded a CPS for sale will continue to receive all of the borrower's amortisation and interest payments until such time as a buyer purchases the CPS. Payments received from this point onwards will be paid to the buyer once the sale has been successfully completed. The purchase price is adjusted accordingly so that the respective invoiced purchase price correctly reflects the cash flows. In the event of a bounced sale, all cash flows go to the seller.

What happens if a loan defaults while a CPS (loan shares) is for sale?

The CPS can no longer be sold at that point and the offer is automatically removed from the secondary market by CG24.

Are there any restrictions on selling a CPS (loan share) on the secondary market?

A CPS cannot be sold if at the time of the sale an instalment payment had to be reminded to the borrower.

Where can I find the payment details for the secondary market purchase?

You can find the details of your secondary market purchase in the payment file. Accrued interest is listed in the "Interest" column.

What do we mean by recovery?

By recovery we mean all measures that serve to reduce payment arrears or to repay the credit debt. The recovery process begins when reminders have not led to the expected payment.

What happens if a debtor does not pay his instalment?

On the third day after the due date, the debtor is sent a payment reminder. This is followed, if necessary, by a first and a second reminder.

Are investors informed about payment irregularities?

Yes, investors are continuously informed about the recovery measures and their success or failure. In the investment cockpit, investors can download the investment tape, which is regularly updated by CG24's internal recovery team. They can also use the credit status to see how many days a customer is in arrears and view the difference between the target and actual due dates in detail in the “Payment file”, which can be found in the Investment Cockpit under “Overview”.

What happens if the client does not respond to instalment reminders or does not pay the instalment?

We initiate debt collection for the monthly instalment due.

Can CG24 cancel the loan if the debtor does not pay his instalments?

If a loan is subject to the Consumer Credit Act (loans to private individuals up to CHF 80,000), CG24 may only terminate the loan if the outstanding instalments amount to at least 10% of the loan amount.

For all other loans, CG24 has the right to terminate the loan in the event of late payment. We make this decision in the best interest of our investors.

Are reminders associated with costs for the debtor?

Yes, for reminders we charge a contribution margin for our expenses. The reminder fees are listed in our fee regulations.

When does a loan default?

A loan is declared in default if all attempts at contact and legal measures taken to repay the debt within a reasonable period of time have been unsuccessful and the loan has been cancelled or is 180 days in arrears. However, it is important to note that the recovery process continues even after a default - even loss certificates can be reactivated annually.

What happens if a loan in which an investor has invested is deemed to be in default? Does the investor then lose their investment?

No. In this case, joint and several liability comes into effect. All investors who have invested in the same type of loan and the same rating level jointly and severally assume a share of the default incurred.

What happens to loss certificates?

Claims from loss certificates can be asserted for 20 years. Depending on the assessment, CG24 will try to sell loss certificates or manage them.

What happens to any proceeds from loss certificates?

These will be refunded to the investors in proportion to the solidarity contributions made at the time.

Who is liable in the event of a loan default in the case of pending secondary market sales?

The seller is liable for a default on a loan of the same credit type and rating category of the investment being sold until the investment is fully transferred (receipt of the purchase price for the receivable by CG24).

What is the solidarity principle and how does it work?

The solidarity principle is a fundamental concept of the CG24 platform that aims to spread the risk of loan defaults among all investors within the same loan category and rating level (=pool). 

In the event of a loan default, direct investors in this loan do not immediately lose their invested nominal amount. Instead, they receive repayments from other investors in the same solidarity pool (based on loan type and rating) until they reach the nominal amount minus their own share of the pool. These repayments from the solidarity pool are made automatically through investment repayments.

How is the amount of joint and several liability calculated?

The defaulted loan amount (including the costs of legal action) is set in relation to the total loan amount of the entire loan type and rating level. The resulting percentage is used to calculate the joint and several liability amount.

Example:

Each investor in the same credit category/rating level is now charged 0.63% of the capital balance of his investment(s).

How are the solidarity contributions charged?

The calculated solidarity contributions are deducted from the next payment for an investment.

What is the rating system?

What is risk optimisation through solidarity agreement?

In order to further minimise the default risk, CG24 has introduced risk pooling through a so-called solidarity agreement. In this way, the investor achieves the highest possible risk diversification without having to invest in dozens of credit projects.

Despite all hedging measures, a loan default can occur and loan recovery can be unsuccessful. If a loan defaults, the loss of the loan amount is distributed proportionally among all investors in the same rating level. In this way, the individual is only minimally affected in the event of a default and the expected return on the individual investment is ensured in the best possible way. Nevertheless, to minimise risk, CG24 recommends that investors invest in several projects, as even with the solidarity clause it can take several weeks for the affected investor to receive the solidarity contributions in the event of default.

What is the death benefits insurance?

Depending on the loan, the borrower takes out a death benefits insurance policy that covers a theoretical residual debt loss of CHF 100,000. The borrower's specific circumstances must be taken into account and may result in restrictions on the insurance benefit.

What is PPI?

The borrower can take out additional disability and unemployment insurance (PPI - Payment Protection Insurance or credit default insurance). This insurance serves the following purpose:

• The client receives the security of being exempt from paying his monthly loan instalments for a period of 12 months in the event of a loss of employment or incapacity for work through no fault of his own.
• At the same time, CG24 or the investor of the loan receives the full instalment for a period of up to 12 months in the event of a benefit claim.

What does credit assessment mean?

In addition to internal creditworthiness data and data provided by external providers, debt collection information and specific clarifications of the borrower are used.

What is subordinated financing?

Subordinated real estate financing - also called mezzanine financing - describes a loan secured by a real estate lien in addition to the existing 1st or 2nd rank mortgage, which is usually granted by a bank.

For whom is real estate financing from CG24 suitable?

Our real estate financing is aimed at professional (institutional or private) real estate investors with an existing portfolio of investment properties.

What type of property can I subordinate with CG24?

Subordinated loans are granted on rented properties (investment properties) in the residential sector with a maximum commercial share of 30%. These are usually apartment buildings, but rental flats are also suitable.

How is real estate financing secured?

Real estate financing is secured by establishing a subordinate mortgage over the entire loan amount, for example a registered or paper bearer mortgage.

How high can the property be additionally mortgaged?

An existing property can be additionally mortgaged up to a maximum of 80% of the market value, whereby own funds are released, for example, in order to be able to acquire further properties or to repair existing ones.

What is the advantage of real estate financing through CG24?

• Mortgaging up to 80% LTV, no amortisation obligation for mortgages above 65% LTV, no lower of cost or market principle, simple application process, individual advice, fast appraisal and processing
• Flexible terms of up to three years
• Additional equity in the shortest possible time and liquidity for your growth

How can I apply for real estate financing?

You are welcome to send us your request directly by email to our Real Estate Team (real-estate@cg24.com) or apply for the desired financing on our platform under the following link: Link

Can CG24 also finance real estate abroad?

No, our real estate financing is intended for borrowers domiciled in Switzerland and real estate located in Switzerland.

What is the minimum amount for a real estate financing?

The minimum amount for a real estate financing is CHF 100,000.

What documents are required for the assessment of a real estate financing?

• Documents relating to the property:
  • Tenant schedule
  • Extract from the land register
  • Property statement
  • Existing mortgage agreements
  • Building insurance certificate
  • Pictures and floor plans

• documents relating to the borrower:
  • ID copy
  • Tax return
  • Annual financial statement
  • Depending on the complexity and scope of the application, further documents may be requested.

Does the loan have to be repaid during the term?

No, the repayment is final, which means that the entire loan must be repaid at the end of the term. Interest and fees are invoiced quarterly or semi-annually. If you would like to repay the loan during the term, this can be discussed individually.

Can I also repay the loan early?

Yes, but the interest for the originally agreed term including the early repayment penalty must be paid.

How high is the interest rate?

Depending on the rating and term, the nominal interest rate is between 2.5% and 6.5% per annum.

What are the fees?

The credit check is free of charge.

When the loan is disbursed, the service fee (depending on the loan amount) is deducted directly. In addition, an administration fee is charged quarterly.

Click here to view the fee table

What are the possible terms for real estate financing?

A term of between 6 and 36 months can be selected for real estate financing.

How long does the process take from appraisal to disbursement?

Provided that all the necessary documents have been submitted, approval can be obtained within 48 hours. The duration of the subsequent financing of the loan depends on our investors, the loan amount and its rating. Usually, the financing period is between one and a maximum of three to four weeks.

Can I also apply for real estate financing for my clients as an agent?

Yes, of course. Contact us by email (real-estate@cg24.com) or phone and we will guide you through the process.

Can I also apply for first-ranking financing with CG24?

You are welcome to contact us regarding first ranking financing. You can enter your request under the following link: Link

We will forward your request to our associate who will obtain the best offer for your desired senior mortgage. If you have any questions, please do not hesitate to contact us on 044 244 30 22.

Do you have any further questions?

If you have any further questions, please do not hesitate to contact our real estate specialists at wenden:real-estate@cg24.com.

Will my personal data and documents be treated confidentially?

To the terms of use

To the data protection regulations

Who is CG24?

CG24 is an online lending platform (peer-to-peer). We connect loan seekers with investors - quickly and easily. Investors and borrowers alike enjoy the benefits of lower and transparent costs. Borrowers benefit from flexible, fast and favourable loans as well as a simple and straightforward credit check process. 

If we determine that you would receive better conditions from one of our partner banks than through peer-to-peer financing with our investors, we will review your enquiry via one of our partner banks. Our primary goal is to always be able to offer you the best financing on the market.

CG24 may act as a lender or as a credit intermediary with affiliated companies. Forwarding is carried out in compliance with all data protection regulations. Discretion and the protection of personal data are top priorities at CG24.

Who can obtain a loan from CG24?

Basically, anyone can apply for a loan, provided that at least the following requirements are met:

• You are between 18 and 65 years old.
• You have held a B residence permit for at least one year or longer.
• You have a minimum income of CHF 3,500 from an employment relationship that has not been terminated.
• Successful credit, identity and money laundering checks.

How do I apply for a loan?

At CG24 you can apply for a loan quickly and easily, directly via this link:

• Fill out the credit application within a few minutes.
• Upload the required documents. You will be shown directly which documents are necessary for a complete credit check based on your credit application.
• Within a few days, you will receive a non-binding credit proposal from our credit experts, tailored to your needs.
• CG24 can check your credit enquiry internally or also refer it to partner banks, subject to your consent in the credit application. The purpose of these credit enquiries is to obtain the best credit offer on the market for you. CG24 may act as a lender or as a credit intermediary with its affiliated companies; in such cases, the respective credit partner acts as the contractual partner or credit-granting institution. The forwarding takes place in compliance with all data protection regulations.

If you have any technical difficulties, we will be happy to help you by phone on 044 244 30 24.

What does a loan cost?

The account opening and the credit check are free of charge and you can obtain a non-binding and individual offer at any time.

The effective annual interest rate (includes the nominal interest rate, the fee for the death benefits insurance and the service fee) is between 4.9% and 11.95%.

The individual costs for a loan will be shown to you transparently in a personal offer. The loan is repaid over a contractually agreed term with fixed monthly instalments. The conditions are set out transparently in the credit agreement.

Click here to view the fees

How quickly will the loan amount be paid out?

You will receive feedback on your loan application within a few days. If your loan falls under the Consumer Credit Act (loan amount between CHF 500 and CHF 80,000 and no exclusion reasons according to the Consumer Credit Act), payment can only be made 14 days following the signing of the contract. Loans with a credit amount above CHF 80,000 can be disbursed within a few working days after receipt of the credit agreement signed by you. The prerequisite for loan disbursement is that all requirements for the loan are fully met and your project has been fully financed by our investors, which usually happens quickly.

What advantages does CG24 offer borrowers?

• Favourable financing: Effective interest rate from 4.9%.
• Fast credit check: You will receive a complete credit offer within a few days after your credit application.
• Understandable and transparent: Our aim is to make our products as understandable and transparent as possible.
• Individual credit analysis: We use our individual credit analysis to check internally and decide whether your loan application with us or one of our partner banks offers the best conditions. This means you receive the best market conditions for your desired financing with just one enquiry.
• Sensible and suitable financing for your needs: We also examine special and complicated situations without reservation.
• Simple communication: We are there for you. Simply contact us.

Can a loan be repaid early?

Yes, you can repay your personal loan early. For legal reasons, we distinguish between personal loans that are subject to the Consumer Credit Act (KKG) and those that are not.

Early repayment of loans that are subject to the KKG:

In the case of consumer loans, borrowers can fulfil their obligations under the loan agreement early. In this case, the borrower is entitled to a waiver of the interest accrued on the unused credit period. Early repayment must be announced to us in writing 10 working days before the date of repayment.

Early repayment of loans which are not subject to the KKG:

Loans with a loan amount of more than CHF 80,000 (or any other KKG exclusion) may be repaid early by borrowers, but no earlier than 12 months after the loan disbursement. The intended early repayment must be announced to us in writing 10 working days before the date of repayment. An early repayment fee is owed in accordance with the loan agreement.

What does rescheduling or loan redemption mean?

If someone has taken out one or more loans, they can refinance the existing debt. If someone is paying high interest rates today, they can make significant savings by switching to a cheaper provider. Furthermore, debts can be bundled, which can lead to a reduction in monthly costs. The previous debts (loans, leasing obligations, credit card debts) are then paid off by a SINGLE new lender.

How does CG24 deal with fraud attempts?

In the event of any attempted fraud, CG24 will file a criminal complaint without exception. Our credit specialists are specially trained in fraud detection and are in contact with numerous institutions in order to quickly validate a suspicion and report it to the police.

What exactly is credit protection and how does it work?

Credit protection is a voluntary insurance against incapacity for work and unemployment that you can sign up for with us.

In case of incapacity to work (due to illness or accident) or involuntary unemployment, you can contact our insurance partner, provide the relevant proof and your monthly installment will be covered by the insurance during the entire period of unemployment, but for a maximum of 12 months per benefit case. 

The insurance coverage ends with the ordinary or premature termination of the loan agreement, but at the latest with the repayment of the entire loan amount.