Solid capital structures. Swiss SMEs do their reputation justice.

Swiss companies are not immune to the effects of globalization, the strong Swiss franc, and growing competitive pressure. However, Swiss SMEs have shown resilience. Not least thanks to numerous financing solutions. The Swiss Credit Handbook 2018 from Credit Suisse examines the creditworthiness of the most important companies on the Swiss bond market. 

Swiss SMEs are robust

Swiss companies are in robust form despite the strong Swiss franc, globalization, and increasingly fierce competition. Many companies used the 2017 interest rate environment as an opportunity for refinancing. They diversified their debt and extended their maturities.

The creditworthiness of many Swiss companies is correspondingly solid. This year again, in the Swiss Credit Handbook 2018, Credit Suisse assessed the credit profiles of the most important Swiss bond issuers and gave them credit ratings. 

Swiss SMEs draw little debt capital

Compared to 2017, Credit Suisse has not downgraded any issuers. And this despite an increase in global indebtedness. While many international companies rely on debt capital, for instance for acquisitions, dividends, or share buybacks, Swiss SMEs remained steadfast. They have fundamentally solid capital structures, thereby doing their reputation justice. Investors who invest in Swiss SMEs therefore have less to worry about than those with investments in other industrialized countries.

Change in net indebtedness 2013-2017

Net indebtedness among examined Swiss SMEs increased only moderately

Source: Company data, Credit Suisse

Corporate loans dominate the financing landscape in Switzerland

The right financing is a prerequisite for the foundation or expansion of a company. In addition, sufficient capital enables an SME to be technologically state-of-the-art and thereby remain competitive. In order to meet their funding needs, SMEs in Switzerland have numerous financing options.

These include corporate loans, such as the current account credit or the lombard loan, as well as mortgages. These have emerged as the two most important financing sources of Swiss SMEs. Loans and leasing are also very popular among small and medium-sized enterprises.

Modern corporate financing for Swiss SMEs 

New forms of financing such as early-stage equity, mid-market lending, and ABS financing expand the offering. Early-stage equity, for instance, includes the provision of venture capital to start-ups. ABS financing, in contrast, provides liquid assets through the issue of bonds on the capital market.

In addition, Online & Mobile Banking has also been expanded to the corporates area. Online Leasing enables SMEs to quickly and efficiently finance vehicles and capital goods. With Online Credit, SMEs can take out an operating loan. The process is completely digital and takes just 20 minutes.

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