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Challenges in SME financing – Alternatives to traditional bank financing

The Swiss corporate financing landscape is undergoing significant change. In particular, the demise of a major bank and actor in financing provision has fundamentally altered the framework conditions for corporate loans in the Swiss banking sector. Small and medium-sized enterprises (SMEs) are particularly affected by this development.

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Current challenges for Swiss SMEs

The consolidation in the banking sector is leading to a clear reduction in competition within the credit market. Since the pandemic, banks have generally become more restrictive, the effect of which is especially noticeable for SMEs with limited credit history or collateral. With the disappearance of a major bank that had a strong presence and large market share in corporate banking, these market shares are now being redistributed among other banks.

This presents the remaining institutions with significant challenges: Due to limited balance sheet resources and the restricted availability of their employees, banks are currently reaching their limits in processing the high volume of loan applications. Against this backdrop, alternative financing models are becoming increasingly important.

Alternative forms of financing

For Swiss SMEs, it is crucial to broaden their financing strategies. Alternative financing solutions such as leasing and factoring offer customized options for different needs, helping to minimize risks and ensure both liquidity and growth potential.

Leasing – flexible access to capital goods

  • Use of capital goods without comprehensive collateral
  • Greater likelihood of approval compared to traditional loans
  • Particularly attractive for young and/or growth-oriented companies
Leasing for SMEs – The basics

Factoring – rapid liquidity through the sale of receivables

  • Immediate liquidity and protection against defaults
  • Improvement of balance sheet structure and equity ratio
  • Ideal for rapidly growing SMEs struggling to obtain traditional financing
Leasing for SMEs – The basics

How to proceed – Step by step to your own financing solution

1

Analysis of your financing needs

  • We determine your financing needs and analyze your current situation as well as existing financing contracts.

2

Market comparison and assessment of offers

  • We conduct a comprehensive market comparison to identify the best providers and offers for your financing.

3

Negotiation of optimal terms and conditions

  • Thanks to our experience, we negotiate directly with banks and financial services providers to:

    - Reduce interest rates,

    - Lower fees,

    - Secure flexible and fair contract conditions.

4

Support up to conclusion

  • We support you when it comes to analyzing the contract and ensuring that all agreed terms are implemented correctly.

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smzh for you – Your advantages at a glance:

Our experts help you understand market changes and find the best options for your financing:

  • Analysis of interest rate situation: We explain to what extent current interest rates influence the available offering.
  • Provider comparison: We compare the various terms providers offer to find the best solution for you.
  • Tailor-made advice: We support you in assessing the long-term advantages and disadvantages of various providers and making a sound decision.

Conclusion and recommendations for SMEs

For Swiss SMEs, it is essential to broaden their approach to financing. Alternative financing methods such as leasing and factoring offer customized solutions for different needs and help to minimize risks while ensuring liquidity and growth potential.

We handle questions such as those shown on the right on a daily basis. Our experts look forward to supporting you.

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When used correctly, models such as factoring or leasing can even improve creditworthiness. By increasing liquidity and reducing short-term liabilities, they can have a positive impact on ratings with banks or credit insurers. Proper bookkeeping and transparent communication with financing partners are essential.

Many SMEs underestimate the importance of contract details or choose a model that does not fit their business structure. For example, leasing may be less suitable for very short-lived investments. With factoring, customer data and receivables management are key considerations. Expert advice is therefore essential.

Yes, a combination is often advisable. Many SMEs, for example, use leasing for machinery and vehicles while relying on factoring to improve liquidity in their daily business. It is important that these financing solutions are coordinated and strategically planned.