Non-bank financing solutions for SMEs - family offices, shared deals, bridging loans, etc.
Here's an article for Swiss SMEs focusing on alternative financing solutions outside traditional banks. In a sporting economic climate such as the one we're currently experiencing in 2023, these solutions can prove crucial to your growth and even ensure your company's long-term survival. Discover the interview here:
When the bank says no, don't stop there!
When an SME needs financing, its own bank is often the first choice that comes to mind. However, banks are not always willing to lend money, especially when the SME is considered risky or when the demand for financing is high. In these situations, it may make sense to explore alternative financing solutions.
PrestaFlex provides up to 2-3 times more liquidity than a bank solution
With PrestaFlex, you can obtain financing that includes a more in-depth analysis of your customer's project and investors, enabling a shared vision to emerge between the two. With our team, we have financed projects from CHF 50,000 to CHF 10 million. For larger amounts, this is dealt with on a case-by-case basis, and repayment terms are subject to specific arrangements. Please do not hesitate to contact us for information on potential opportunities for your project.
Unrecognized and underestimated alternative financing solutions
Alternative financing solutions are often misunderstood and under-utilized. SMEs tend to self-finance or turn to banks without looking for other options. Yet there are some interesting solutions, such as crowdfunding, family offices, mezzanine loans for real estate markets, asset managers, finance companies and so on. These solutions can offer advantages such as collateral-free loans or greater flexibility.
Banks are organizations with very strict, controlled and regulated administrative rules
When a bank refuses to lend money, it may seem like an insurmountable obstacle. However, it's important to understand that banks must allocate credit between regions (Swiss cantons, municipalities) and business sectors. Banks must also comply with applicable regulations, such as capital adequacy ratios, to ensure that they have sufficient capital to cover the risks incurred. Capital allocation decisions are made by a multitude of decision-making bodies (internally by audit, credit or risk committees, externally by regulators, e.g. FINMA, etc.).
Banks may thus have a myriad of different reasons for saying no to a financing request, which do not depend on the viability of your business but on a series of administrative rules. They will not coach their customers to improve and advise them on how to obtain credit in the coming months, and will stick to the pre-established rules.
In general, this is a refusal without justification. The banker of the future is the one who will coach the manager to good financial health and make him eligible for traditional solutions. SME managers should not be discouraged and should look for alternative financing solutions, because they do exist! There's no point in refusing an application and making a lot of effort, without mentioning the reasons for refusal, which would enable a manager to considerably improve the financial aspects of his or her governance. This communication is the essential prerequisite for success, because when you tell people what's not working, it unblocks situations and brings fluidity.
A booming Swiss alternative financing market
Alternative financing solutions have evolved over the years and are now more accessible than ever. SMEs now have access to solutions such as factoring, leaseback and real estate bridging loans. These options are often more flexible than traditional bank offerings, and can be better adapted to the needs of SMEs.
It's important for SMEs to find out about alternative financing solutions and understand how they can help them achieve their goals. Banks are not the only option, and SMEs now have access to a range of alternative financing solutions.
Speakers
- Münür Aslan - CEO of PrestaFlex and MultiCredit Sàrl
- Thierry Dime - Editor-in-Chief, Le Monde Economique
Video production, editing and writing of the article
- Nikolina Langura, Managing Director , Digibooster Sàrl
