Crowdfactoring

How to offer your Invoice for a Business Loan

1. Before you can request a Crowdfactoring loan on the 3CF website, you must ‘Sign Up’ (which is free) by providing your official business e-mail address and create a username and a secret password.
2. Once you have signed up, please click the link we send to your e-mail address to verify that your e-mail address is valid.
3. Now by clicking ‘Crowdfactoring’ then on ‘Borrower’, you are able to ‘Request Invoive Outlet’ loan via your dashboard by providing 3CF with the necessary information to process your loan application.
   • See note on Collective signatories for businesses
   • See note on required documents for businesses borrower loan applications
4. The loan processing attracts a listing fee (non-refundable). Must be paid before loan request is processed. Details for this payment will sent by e-mail.
5. You will receive an e-mail acknowledgement that confirms 3CF has received your ‘Request Crowdfactoring Application Form’.
6. 3CF will only list relevant loan information on the website and will not publish confidential company information. All information marked with an ‘*’ on the ‘Request Crowdfactoring Application Form’ page will be published on the 3CF website.
7. 3CF will send you an e-mail with the outcome of your loan request within 10 working days, or 3CF will contact you directly via e-mail with a progress update.
8. Once 3CF has successfully authorised your loan request, it will be automatically published on the website together with an indicative credit rating.
9. When the loan is fully funded, the borrower must electronically sign and date the loan agreement contract on the dashboard within 3 working days of receiving the e-mail request to do so.
10. Before any loans can be sanctioned, the ‘Establishing of the controlling person of operating legal entities and partnerships both not quoted on the stock exchange’ – Form K – must be electronically signed and dated on the dashboard (this can be done at any time).
11. If either party (borrower or lender(s)) fails to electronically sign and date the Loan Agreement Contract and any of the lender(s) fail to pay for their respective bids, the Loan Agreement Contract will be cancelled and the lenders’ funds will be returned to them. The requested loan will be reposted on the 3CF website at no extra charge.
12. When all parties have electronically signed and dated the Loan Agreement Contract, and all payments have been made; the funds will be released to the borrower with the 3CF service fee already deducted.
13. Businesses must pay the full settlement amount on the specified ‘Settlement date’ stipulated in the Crowdfactoring Loan Agreement Contract.

How to Fund a Crowdfactoring Loan

1. Both individuals and businesses can fund Crowdfactoring business loans.
2. Before you can ‘Fund/Buy Loan’ on the 3CF website, you must ‘Sign Up’ (which is free). Individual lenders must provide a private e-mail address, a username (which can be anonymous) and create a secret password. Business lenders must provide their official business e-mail address and create a username and a secret password.
3. Once you have signed up, please click the link we send to your e-mail address to verify that your e-mail address is valid.
   • See note on collective signatories for businesses
   • See note on required documents for individuals or businesses to Fund/Buy a loan
4. Now by clicking ‘Crowdfactoring’ then on ‘Lender’ you are able to ‘Fund/Buy Loan’ via your dashboard by providing 3CF with the necessary information.
5. You will receive an e-mail acknowledgement that confirms 3CF have received your ‘Fund/Buy Loan’ request.
6. 3CF will send you an e-mail with the outcome of your request to fund a loan within 3 working days.
7. 3CF only has to authorise your ‘Fund/Buy Loan Application Form’ request once, provided there are no changes in circumstances. (Single authorisation enables funding of both Crowdfactoring and Crowdlending simultaneously)
8. Once 3CF has authorised your ‘Fund/Buy Loan’ request, you will be able to invest in loans on the website.
9. When the loan is fully funded, the lenders must electronically sign and date the loan agreement contract in their respective dashboards, within 3 working days of receiving the e-mail request to do so.
10. Before any loans can be sanctioned, for businesses the ‘Establishing of the controlling person of operating legal entities and partnerships both not quoted on the stock exchange’ – Form K – and for Individuals the ‘Establishment of the beneficial owner’s identity’ – Form A – must be electronically signed and dated on the dashboard (this can be done at any time).
11. Upon all parties signing and dating the loan agreement contract, the lender(s) receive an e-mail and have a further 3 working days to pay for their respective bids into the 3CF escrow account.
12. The contract is only valid when all parties have electronically signed and dated the Loan Agreement Contract and all lenders have paid for their respective bids.
13. If either party (borrower or lender(s)) fails to electronically sign and date the Loan Agreement Contract and any of the lender(s) fail to pay for their respective bids, the Loan Agreement Contract will be cancelled and the lenders’ funds will be returned to them. The requested loan will be reposted on the 3CF website at no extra charge.
14. Businesses have the option of choosing the Settlement date, which begins between 1 to 4 months after the start of the loan. The full settlement amount of the loan is due in full on the ‘Settlement date’ stipulated in the Crowdfactoring Loan Agreement Contract.

Bidding Process

1. 3circlefunding.ch is a bidding platform on a ‘first come – first served’ basis to fund part or all of a loan when loan criteria is matched – not an auction platform.
2. Prospective lenders can fund a Crowdfactoring loan by matching the loan criteria; loan amount, discount rate, credit rating and duration.
3. Lenders are not guaranteed a match with a borrower’s posting to fund a loan.
4. The system generates the minimum bid amount and is recalculated after each subsequent bid.
5. Close of bids: the loan will run for the duration set by the borrower and close when the loan is fully funded or expire if 100% funding target is not reached.

Autoinvest

1. Registered lenders can predefine their respective loan investment criteria – amount, discount rate, credit rating and duration – and the system will automatically match these to available loans under the Autoinvest function via their dashboard.
2. Autoinvest can be enabled or disabled at the lender’s discretion. Both individuals and business lenders are able to Autoinvest in individuals’ loans, business loans and business Crowdfactoring loans.
3. An Autoinvest bid and match follows the same process as on the website – bid, match, sign, date and pay.
4. Autoinvest will immediately start to match your investment criteria with available loans on the website.

Secondary Selling Market

1. The Secondary Selling Market is available to both individuals and business lenders.
2. After a lender has funded a Crowdfactoring loan, they are able to sell their part of the loan to other registered lenders at:
   • cost; that is, the pending amount left to be repaid of the loan (loan amount plus interest)
   • a premium that is above the cost price
   • a flat amount that is below the cost price
   • a discount (%) that is below the cost price
3. The system will not allow the sale of a loan part less than 10 days before a monthly loan repayment is due.
4. Both lenders (buyer and seller) must electronically sign and date the Accession Agreement Contract.
   • The buyer must electronically sign and date the Accession Agreement Contract AND pay for their purchase within 3 days.
   • The seller has 3 days to electronically sign and date the contract from the date the buyer made the purchase.
   • The borrower will receive a copy of the signed and dated Accession Agreement Contract after exchange and payment between the buyer and the seller.
   • The buyer will receive the original loan agreement contract, which they have acceded to.
5. Failure of either party to electronically sign and date the contract and the buyer not making the payment for their purchased loan part, will result in the sale being cancelled and the loan part being returned to the seller’s dashboard and the buyer’s funds being returned to them.
6. Where the primary business signatory nominates a secondary signatory for the Sale/ Purchase on Secondary Selling Market, the 2nd signatory will then be given the option to view and ‘Agree/Disagree’ sale/purchase.

Secondary Selling Market Rules

1. Lenders can post their part of the Crowdfactoring loans for sale – not less than 10 days before the due date.
2. Lenders can only sell their loan parts to other registered lenders using the website.
3. Borrowers are not eligible to buy loan parts from lenders.
4. Borrowers cannot buy loan parts until all loans are paid back in full.
5. Lenders are not guaranteed a sale of their loan parts.
6. Lender’s loan parts can only be sold if a registered lender is willing to buy what is on offer
7. Upon the sale of the loan parts, both the buyer and seller will electronically sign and date an Crowdfactoring Accession Agreement to the Loan Agreement Contract held by the borrower, which will replace the original owner (lender-seller) of the loan part with the new owner (lender-buyer) of the loan part.
8. The buyer of the loan part must pay within 3 days of electronically signing and dating the Crowdfactoring Accession Agreement.
9. If the seller of the loan part does not electronically sign and date the Accession Agreement with 3 days of it being bought, then the buyer’s funds will be returned within 3-5 working days.

Collective Signatories for Business Borrowers – Crowdfactoring

1. Where the primary business signatory nominates a secondary signatory (as in the Swiss Handelsregister), the 2nd signatory will receive an e-mail to their business e-mail account as designated by the 1st signatory for the purposes of verification and authentication. The 2nd signatory must click the verification link and assign themselves a secret password.
2. The 2nd signatory will then be given the option to view and ‘Agree/Disagree loan’ request. After inputting their personal details and uploading a signed and dated copy of their respective passport the user can agree to the loan request. Failure of the 2nd signatory to agree to the loan request will result in the loan being cancelled.
3. If the 2nd signatory agrees to the loan request, the loan will be processed by 3CF. Upon approval of the loan request, the loan will be posted on the website. The 2nd signatory will have ‘read only’ access to the financial information, details and progress of the loan on the dashboard.
4. If the loan is fully funded, the 2nd signatory will additionally be required to electronically sign and date both the Loan Agreement Contract and the ‘Establishing of the controlling person of operating legal entities and partnerships both not quoted on the stock exchange’ – Form K.

Collective Signatories for Business Lenders – Crowdfactoring

1. Where the primary business signatory nominates a secondary signatory (as in the Swiss – Handelsregister), the 2nd signatory will receive an e-mail to their business e-mail account as designated by the 1st signatory for the purposes of verification and authentication. The 2nd signatory must click the verification link and assign themselves a secret password.
2. The 2nd signatory will then be given the option to view and ‘Agree/Disagree bid’ funding. After inputting their personal details and uploading a signed and dated copy of their respective passport the user can then agree to the bid. Failure of the 2nd signatory to agree to the bid, will result in the loan being unable to be funded by the 1st signatory.
3. If the 2nd signatory agrees to the bid, the bid will be posted to the website. The 2nd signatory will have ‘read only’ access to the financial information, details and progress of the loan on the dashboard.
4. If the loan is fully funded, the 2nd signatory will be required to electronically sign and date both the Loan Agreement Contract and the ‘Establishing of the controlling person of operating legal entities and partnerships both not quoted on the stock exchange’ – Form K.