Financing SME - Crowdlending as an alternative?

Person who wrote the post admin Sep 08, 2017
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Small and medium-sized enterprises (SMEs) are traditionally strongly rooted in Switzerland. There are over 576,000 companies with less than 250 employees, representing 99.7% of companies and 68% of jobs.
Around one third of Swiss SMEs have a bank loan or a credit line. In total, one in twelve SMEs feels discouraged and has not submitted a loan application despite the need for funding. The reasons for this, according to the IFZ study, were, among other things, excessive collateral, lengthy and tedious credit processes and the expectation that the application would not be approved by the bank. In the case of rejected loan applications, the main reasons were insufficient corporate financial strength and insufficient collateral. (Source: Institute for Financial Services Zug IFZ)
 
As a now viable option for the classic bank loan, financing with Crowdlending is now also available in Switzerland. In Switzerland, however, the peer-to-peer financing form has barely been used as an alternative. The volume in 2016 was only in the lower double-digit million ranges. The reason for this is certainly the comparatively good supply of bank loans in Switzerland.
Crowdlending can be a good alternative to conventional bank lending. While Crowd4Cash is very restrictive in credit checking, like the banks, the 100% online registration process makes the loan project quick and easy. This saves companies time, which you can profitably use for your customers.

For investors, this alternative form of SME financing is also very attractive as it offers average returns of 5-7% in a diversified loan portfolio.