Equity loans: What it is and how to take advantage of it

Fully anchored in the digital economy, it is a real alternative to so-called “classic” credit. Not going through the banks, it is done from private to private. This practice first exploded in the United States around 2010, and then was exported all over Europe, particularly in the United Kingdom.

In Switzerland several platforms offer Crowdlending, among which our partners, Lite Lending, and Good Lenders Credit.

For Lite Lending, we offered them the first borrower that was published on their platform. The relationship between Lite Lending and Cream Bank was born from the desire to build a different credit, by sharing fair values ​​which puts the borrower at the heart of the considerations.

 

A win-win system

A win-win system

These crowdfunding platforms are popular for several reasons:

Borrowers benefit from an advantageous interest rate (from 4%), transparently and without going through banking organizations or an intermediary.

On the other hand, private investors perceive a much better return on investment than if they deposited their money in the bank.

 

In concrete terms, how does that work ?

equity loans

Take the example of Lite Lending.

You make a request on their website, from USD 10,000 to 80,000 for a period of 12 to 60 months, the platform will then analyze your situation (income, identity, creditworthiness, etc.) and if your case is determined to be suitable for financing, present it in a list on their website (anonymously), and give you a rating (A to C) and a rate based on around thirty criteria.

Investors will then decide to lend you money if they find your request attractive. Your loan will therefore be financed by a multitude of private investors.

 

What are the fees?

loans

You repay your credit monthly to the crowdfounding platform, which will then transfer the money to the various investors who have financed you.

Concretely, as the platform does not lend itself the amounts requested on its platform, it has no interest in charging high interest rates. She takes no risks because it is not her money.

Lite Lending is remunerated through minimal fees, levied both on the borrower’s side when paying the loan and on the investors’ side when paying each monthly payment.

Good Lenders Credit or Lite Lending are remunerated by means of minimal fees, taken both from the borrower’s side when paying the credit and from the investors’ side when paying each monthly payment.

The costs taken by Lite Lending from the borrower are 0.7% of the amount borrowed multiplied by the duration of the credit in years. More specifically, if you borrow USD 10,000 over 3 years on Lite Lending, USD 210 of fees (corresponding to 2.1% – 0.7% x 3) will be deducted from the amount that will be paid to you.

On the investor side, Lite Lending charges 0.5% of the loan amount multiplied by the duration of the credit in years and spread over all of the monthly payments. For example, if you have lent USD 1,000 over 3 years and the monthly payment you receive is USD 30, it will be taken around 40 cents per monthly payment (1.5% of USD 1,000 = USD 15, divided by 36 monthly payments = 40 cents per monthly payment).

All these elements are explained in a transparent and clear manner throughout your discussions with Lite Lending.

 

Credit for business at Good Lenders Credit

Credit for business at Good Lenders Credit

Are you an entrepreneur and would you like to obtain financing to develop your business? Thanks to our partnership with CreditGate24, you can get a loan of up to USD 5,000,000!

Make your request now directly on our site, you will have access to advice and personalized monitoring.

We will prepare with you the best possible file to put the odds on your side.

The credit conditions for business:

  • Amounts of up to 5,000,000 USD
  • Interest rates from 4.95%
  • Flexible repayment duration of up to 60 months