The Cashare Rating
Find out how our rating works
What does our rating say?
Cashare has developed a proprietary credit scoring technology that uses big data, artificial intelligence and machine learning algorithms to provide fast and efficient credit solutions for our customers.
Every loan application goes through our rigorous risk assessment system and is evaluated against hundreds of data points based on Cashare’s historical database. We use direct API connections to several external payment and government databases to enrich our overall credit rating. This enables us to assess loan applications more quickly and determine credit risks with greater precision than conventional systems.
Our rating creates clarity
Each loan is given a risk rating from A (lower risk / lower return) to F (Higher risk / higher return) assigned. Ratings below C (approx. 80% of all applications) are rejected due to a currently inadequate risk / reward profile and are not published on the marketplace.
11Nominal interest is the annual interest rate that borrowers pay on their loan (Cashare's platform fee is calculated separately and does not affect this interest rate). The interest rate depends on the credit project and/or risk rating, which is calculated on Cashare's rating model.
2Estimated returns are (i) taking into account the weighted, average interest rate of all loans incurred during a certain period, in addition to the added (ii) estimated default interest and retrospectively through the contribution of defaulted loans and minus (iii) the platform fee , calculated.
Important noteThe actual return on the investment depends on the individual repayment behavior of the individual borrowers, which is very uncertain. Individual results can vary and the forecasts change. Past results are not a guarantee of future results and the information presented is not intended to be investment advice or a guarantee of future returns.
Investors may lose part or all of their invested capital. Investors should review the risks and uncertainties before investing.
Collaterals
On Cashare, loans by the borrower can also be secured with additional collateral. These are:
✓ Real estate deposit
✓ Guarantees
The additional securities are shown specifically in the loan projects. In the event of a payment default, the collateral will be used in order to achieve a quick return of the funds. The collateral is already taken into account in the rating.
Minimum interest rate (interest rate floor)
Cashare ensures that a fair interest rate is always achieved. This always includes a return on equity, the refinancing costs, the inflation premium and the risk premium. Graded according to rating and term, the total interest will vary accordingly. The floor determines the minimum interest rate, while higher interest rates enable an additional return. The floor cannot be undercut. As soon as this is achieved and the financing is 100%, the loan project will be completed. To make sure that a bid can be placed, a bid can also be placed directly on the floor.
