In the first half of 2025, IFBC successfully supported multiple companies in structuring and implementing their financing needs. We advised on a credit volume of over CHF 1.25 billion reflecting the high level of trust our clients place in us, but also the challenges facing the Swiss credit market at present.
What is driving the credit market?
The following developments have been observed in the Swiss market in recent months:
- Structural changes in the Swiss banking landscape
- Slow development and low visibility of alternatives, often associated with unreasonable terms
- High utilization of banks' loan portfolios, leading to a shortage in credit supply and consequently a rise in the cost of credit
- Unfavorable trends in refinancing conditions and new regulatory capital requirements for banks increase their financing costs
- Stricter requirements for new banking relationships, more critical assessment and higher risk protection needs particularly in infrastructure financing
- Increased risk management requirements in the banking sector
- Pressure to act due to high cost/income ratios in Swiss banking
- Strong focus by banks on additional and immediately cash-effective fee income
- High demand and investment needs among corporate clients
- Macroeconomic uncertainty due to volatility in interest rates, currencies, and inflation.
"What matters now: market proximity, reputation, expertise, and network."
What is required of companies?
Banks are acting more selectively and making use of their strengthened negotiating position. At the same time, many companies have acute or pent-up financing needs, for example for upcoming refinancing, M&A activities or investments in strategically relevant areas such as IT infrastructure and digital transformation, energy solutions, and adjustments to business models (supply chains, production sites, vertical integration). We are increasingly observing that even companies with high credit ratings are finding it difficult to secure or extend financing on the desired terms.
Conclusion
In an environment of stagnating credit supply and growing demand, market proximity, negotiating skills, networks, and experience are becoming increasingly important in order to address financing needs in a timely manner and on appropriate terms.
Debt Advisory Services – Seizing Funding Opportunities
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