Maclear / Investing / Risk & Scoring / What is LTV (Loan-to-Value) on Maclear and how does it affect your investment

What is LTV (Loan-to-Value) on Maclear and how does it affect your investment

03.06.2026

4 Min.

LTV — Loan-to-Value — is the ratio between the loan amount and the value of the collateral backing it. On Maclear, LTV is displayed on every project page and indicates how well the loan is covered by the borrower's pledged assets. A lower LTV means the collateral significantly exceeds the loan — stronger protection for investors in an enforcement scenario. A higher LTV carries more risk but typically comes with a higher interest rate.

How LTV is calculated

The formula is:

LTV = Loan Amount ÷ Collateral Value

For example: a €100,000 loan backed by collateral valued at €200,000 gives an LTV of 50%. This means the collateral is worth twice the loan — if enforcement were needed, there is substantial buffer before investors face a loss on principal.

What LTV ranges mean in practice

  • 40–80% — Low risk. Collateral significantly exceeds the loan. Strong protection in an enforcement scenario.

  • 80–120% — Moderate. Collateral roughly covers the loan. Standard range for many SME loans.

  • 120–160% — Elevated. Collateral covers the loan but with limited buffer. Higher interest rates typically compensate.

  • 160–200% — High risk. The loan approaches or exceeds the collateral value. Enforcement may not fully cover principal if asset values decline.

    • What counts as collateral on Maclear

    Collateral is assessed on a project-by-project basis during due diligence. Accepted forms include real estate, business equipment, receivables, and personal guarantees from company owners. Additional securities may be required depending on the loan size and borrower profile. All collateral and guarantees are documented before the project is listed.

    How Maclear verifies collateral value

    Maclear assesses the value of pledged assets as part of the financial due diligence process. This includes review of asset documentation, independent valuation where applicable, and analysis of market conditions relevant to the asset type. The verified collateral value is used to calculate the LTV displayed on the project page.

    LTV alongside risk scoring

    LTV and Risk Scoring work together to give a complete picture of project risk. The risk score reflects the probability that the borrower will default. LTV reflects how much would be recovered if they did. A project can have a mid-range risk score but a low LTV — meaning default is possible but recovery would likely be high. Reading both figures together gives the most complete basis for an investment decision.

    What is the debt-to-equity ratio and why does it matter for Maclear projects?

    The Debt-to-Equity ratio (D/E) measures how much of a borrower's operations are financed by debt versus the owners' own capital. Formula: Total Liabilities ÷ Shareholders' Equity. A lower ratio indicates lower leverage and greater financial stability — the company relies more on its own capital than borrowed money. A higher ratio means greater dependence on debt, which increases repayment risk if revenues fall. D/E is one of the metrics evaluated during Maclear's due diligence process and is available as a filter in AutoInvest Advanced Settings, with a range of 0.2 to 4.0.

    Where can I see the LTV for a specific Maclear project?

    LTV is displayed on every project page under the project details. You can review it before investing. If you use AutoInvest, you can set a maximum LTV threshold in Advanced Settings so the strategy only invests in projects within your chosen range. The default LTV setting in AutoInvest is 40%.

    Can the LTV of a project change after I invest?

    The LTV is calculated at the time of project listing based on the verified collateral value. If the loan balance decreases over the repayment term, the effective LTV improves. Significant changes to collateral value — for example, if a pledged asset depreciates materially — would be captured in the quarterly borrower monitoring process and reflected in the updated risk assessment.

    Does a lower LTV always mean a better investment?

    Not necessarily. A very low LTV with a high-risk borrower profile still carries meaningful default probability — the collateral protects recovery but does not eliminate the risk of payment disruption. The most complete picture comes from reading LTV alongside the risk score, interest rate, loan term, and borrower profile together.


    Important: LTV and collateral values are assessed at the time of project listing. Asset values may change over time. This information does not constitute investment advice.

    Risk disclosure: Crowdlending involves risk, including the possible loss of capital. Past performance is not a guarantee of future returns. Invest only what you can afford to lose.

    Regulatory disclosure: Maclear AG, registered in Switzerland, member of PolyReg SRO, a self-regulatory organization supervised by FINMA.


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    What is Maclear Risk Scoring: how borrower projects are rated and why it matters

    Maclear rates every borrower from AAA to D — aligned with S&P, Moody's, and Fitch — based on three dimensions: Financial Risk (debt/equity, TNW), Qualitative Risk (business, management, industry), and Coverage & Liquidity (DSCR, current ratio). The rating directly determines the investor interest rate. Ratings refresh quarterly; sub-threshold and D-rated projects are never published.