Swiss consumer loans shine with extremely low default rates

Switzerland, with Bern as its capital, is a fascinating country that is known for its impressive Alps and is impressive both in terms of its landscape and economy. With a population of around 8.8 million people, the country offers a high quality of life and a stable economy. The government, led by Walter Thurnherr, provides continuous political leadership that keeps the country on a successful course.

Switzerland enjoys a strong economic performance, which is also reflected in the GDP per capita of 77,741 US dollars. This is an impressive figure that underlines the country's economic strength. In addition, Switzerland has a high credit rating of AAA from S&P, indicating its financial stability and reliability. The country is also committed to sustainability and environmental protection, as evidenced by its impressive MSCI ESG rating of AA.

The Swiss (eurozone) benefit from a relatively high average monthly income of 6,000 euros (2.2k euros), which can be attributed to the country's generally high wage levels and prosperity dynamics. At the same time, per capita debt is comparatively moderate at 24,146 US dollars (29k euros), which is indicative of the solid economic structure and responsible financial policy.

Overall, Switzerland is a country with a stable economy, impressive nature and a high quality of life. The Swiss can be proud of their outstanding economic performance and their focus on sustainability and environmental protection, while enjoying the beauty of the Alps and their rich culture.

The P2P lending platform in Switzerland

  • Founded in 2015
  • Consumer finance and SME loans
  • Loan is granted by Switzerlend AG
  • In-house collection process instead of external DCA

Portfolio in Switzerland


Interest rates for newly issued loans (static across all risk classes)


average loan amount


years average remaining term


average failure rate


annualized return

Consumer loans: uncorrelated and profitable

Dealing with late payments

If borrowers fail to make an installment payment on the due date, they are automatically in default on the following day without a reminder or other notification. LEND sends reminders and, where necessary, initiates further measures - ultimately the borrower is prosecuted. LEND can also demand interest on arrears in the amount of the agreed annual percentage rate of charge.

LEND's primary goal is to get the borrower back into a situation in which he can pay the monthly installments on time. Both pre-legal and legal debt collection is carried out by the company's own specialists with the overriding aim of finding the best solution for investors.

Every investor can view the payment status of all investments in the dashboard at any time. In addition, LEND keeps investors up to date on individual cases in the event of longer payment delays.

Cost-efficient system, especially for late payments from private customers:

  • Payment orders can be initiated without providing evidence
  • Only around 5% of debtors lodge an objection
  • Enforcement almost always through wage garnishment

If bankruptcy proceedings are initiated, the probability of repayments falls:

  • However, personal bankruptcy does not lead to debt forfeiture

Regulation in Switzerland

Switzerlend AG ("LEND") has a lending license from the Office of Economy and Labour and, as a regulated financial intermediary, is a member of the self-regulatory organization PolyReg. For its part, SRO PolyReg is subject to the supervision of the Swiss Financial Market Supervisory Authority FINMA.

LEND acts as a contracting party between borrowers and investors. This means that borrowers conclude the loan agreement with LEND and investors acquire receivables from the loan agreement through the purchase and assignment of receivables.

In this structure, LEND can act as a regulatory buffer and assume compliance with obligations for users. For example, they ensure that the requirements relating to combating money laundering and the Consumer Credit Act are met.

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