Crowdlending platform for Swiss SMEs off to a good start

Neocredit.ch is a new crowdlending platform enabling a large number of private and professional investors to jointly finance a wide range of SME projects. At neocredit.ch, investors will find exclusively Swiss SMEs that have been active at least for four years and have an annual minimum turnover of CHF 150,000.

On the platform, SMEs can submit a financing request in just a few minutes, which is answered within 48 hours. The subsequent financing campaign is then open to investors for about ten days, where after the funds are paid out to the SMEs. Lenders can invest their money starting from CHF 100 at returns of up to 8.8%.

Eight financed projects

To date, neocredit.ch has financed SME projects in a wide variety of areas. Whether it is financing operating facilities for a grocery store, developing safety equipment or audio guides for cruise ships, projects are selected strictly according to a precise evaluation and risk analysis procedure. Since its launch, the platform has so far financed 8 projects for a total amount of CHF 680,000. If SMEs wishing to have their projects financed meet the criteria of neocredit.ch, they can obtain a loan of between CHF 20,000 and CHF 1,000,000. Due to the lean and innovative processes, the access to financing is significantly faster than through a bank.

However, neocredit.ch does not compete directly with traditional banks. Nowadays, small and medium-sized companies are increasingly looking for alternative financing solutions because the range of services offered by banks does not meet their needs. For example, if marketing costs required for the launch of a product, recruitment costs or inventory costs with a very short duration are involved, it can be difficult to obtain bank financing. "By offering Swiss SMEs with this type of need a solution via crowdlending, neocredit.ch offers a service that complements that of the banks," explains Torsten Schittenhelm, CEO of neocredit.ch.

Neocredit is an independent company. However it was co-financed by Vaudoise Insurances and credit.fr the French crowdlending market leader. The start-up aims to position itself as a recognised player in the crowdlending business in 2020. At the same time, a long-term strategy is being pursued to ensure that neocredit.ch can develop substantially. According to a press release, the focus will always be on quality rather than quantity.

Update July 2022

On 5.7. 2022, Vaudoise announced that it had acquired all shares in neocredit. Since then, the platform has been a 100% subsidiary of the insurance company.

(Press release / SK)