

On 5 July 2017, the Federal Council adopted an amendment to the Banking Ordinance. Crowdlending companies are making life a lot easier for us. But which changes came into force on 1 August 2017?
1. Extension of the 7 day rule to 60 days
So far, it was only possible for us for 7 days to keep funds in the account. This value has been defined by the Swiss regulator FINMA as a legal practice. After this period, the money had to be paid again. So far, it has been a challenge to get the money at the right time in order, for example, in connection with the statutory right of withdrawal according to consumer credit law (KKG) to be able to pay in due time.
From the 1st of August the money can now be kept for 60 days. This greatly simplifies for us the processing of payments and the corresponding deadlines. In addition, we see new business opportunities for us and the whole industry through the new longer term. We will be happy to inform you about new developments at the given time.
2. Repeal of the 20 rule
In the future, a loan of up to CHF 1 million can be co-financed without authorization by more than 20 investors for Companies. Until now, a borrower was legally considered a bank when the 20s rule was exceeded and had to fulfill a license requirement.
The larger split of the amounts, which corresponds to the actual crowds thought, now higher funding amounts are realistic. Previously larger amounts, which are very difficult to finance due to the high minimum investments, can now be divided into much smaller amounts. This in turn increases the likelihood of funding and allows the investor to diversify even more.
Crowd4Cash has already responded and raised the maximum amount for SME loans to CHF 500,000. Further measures will follow shortly.
Crowd4Cash welcomes the changes and we are very pleased that the processes are simplifying and new business models are possible.