How Alternative Lending Helps Swiss Businesses After the Credit Suisse and UBS Merger

In 2023, the merger of UBS and Credit Suisse created a big change for banking in Switzerland. It caused a problem for thousands of small and medium-sized businesses, also known as SMEs.

Credit Suisse was often called “the bank for entrepreneurs.” It loaned money to growing companies in fields like clean technology and medical technology. UBS was more careful. It focused on managing money for wealthy clients and giving loans that were secured by property, like buildings.

When the banks joined, many businesses could no longer get the loans they needed. This happened for two main reasons. First, if a company had loans from both banks, UBS often lowered the total amount it could borrow to reduce risk. Second, many companies moved their money to regional banks, which also changed their access to loans.

The biggest problems happened between March 2023 and the middle of 2025. During this time, the two banks combined their computer systems. Many business owners who had good relationships with their managers at Credit Suisse were suddenly treated like new customers. They had to go through new checks and provide new collateral, which is something valuable you promise to give a bank if you can’t repay a loan.

Why Traditional Banks Struggle to Fill the Gap

Swiss banks have enough money to lend. The problem is that what businesses need and what big banks want to offer do not match.

Many Swiss companies used to have accounts at both UBS and Credit Suisse. This strategy helped them get better loan terms. After the merger, this was no longer possible. For example, a company might have had a loan of CHF 2’000’000 from Credit Suisse and CHF 1’500’000 from UBS. After the merger, UBS might only approve a total loan of CHF 2’000’000. The company instantly lost access to CHF 1’500’000.

The merger also changed who could get loans. Credit Suisse often loaned money to businesses that sell products to other countries. These companies may not own buildings but have a steady flow of money from customer sales. UBS has stricter rules and prefers to lend against property. A company with a good contract but no building to offer as collateral might be rejected by UBS, even if Credit Suisse would have approved the loan.

How Other Banks Are Responding

Regional government-owned banks, known as cantonal banks, gained many new customers. However, these banks have limits. By law, they must focus on their home region. They also prefer lending against property, which doesn’t help companies whose value is in ideas or technology.

Some large international banks also tried to attract Swiss businesses. But they usually focus on very large companies with yearly sales over CHF 50’000’000. This leaves out most smaller Swiss businesses that earn between CHF 5’000’000 and CHF 15’000’000 a year.

Alternative Lending Steps In

Because traditional banks are lending less, a new option called alternative lending has grown. One part of this market is crowdlending, where many people lend small amounts of money to a business online. This market grew from CHF 406’800’000 in 2023 to CHF 491’000’000 in 2024.

Bigger and more established companies are now using these platforms. In 2022, the average loan was about CHF 250’000. By 2024, it grew to CHF 350’000. These platforms offer key advantages:

• Speed: Getting a loan from an alternative lender takes about two to three weeks. A traditional bank can now take two to four months. For a business that needs cash quickly, waiting that long is not an option.
• Collateral: Banks want property or cash to secure a loan. Alternative lenders look at a company’s cash flow. They check if the money coming in is enough to make loan payments. This way works well for tech companies whose main assets are ideas and customer contracts, not buildings.
• Cost: Alternative lenders often charge higher interest rates, between 4.5% and 8.0%. Banks charge between 2.0% and 4.5%. While this way seems more expensive, many business owners find it is worth it. The cost of delaying a project for months while waiting for a bank loan is often much higher than the extra interest.

What It Means for Innovation Sectors

The loan shortage is especially hard for new and growing industries. The financing gap hits hardest in industries where CapiWell focuses. Clean technology and engineering companies, for example, need money for large, expensive equipment. Banks are now asking for nearly 100% collateral against this equipment and prefer property instead.

Companies working on artificial intelligence (AI) or new medicines face a different problem. Their value is in their ideas and patents, which banks do not count as collateral. Alternative lenders understand these businesses better. They can provide loans based on predictable monthly income from customers.

Two Company Examples

One engineering firm in eastern Switzerland with yearly sales of CHF 12’000’000 had been a Credit Suisse customer for 30 years. When it was time to renew their loan, UBS cut the amount by 40%. The company used a crowdlending platform to get the money it needed for new equipment.

A medical technology company in Zurich needed CHF 500’000 to produce more of its product. A large bank said no because the company was new and had no property for collateral. The company got the loan in three weeks from a digital lending platform that looked at its growing sales instead.

How SMEs Should Evaluate Their Options

Businesses now need to look at all their choices for getting a loan. It is important to compare speed, collateral, relationships, and cost.

• Speed: Traditional banks are now slow. Cantonal banks are a bit faster. Alternative platforms are the fastest, with digital processes that take only a few weeks.
• Collateral: Big banks and cantonal banks both want property as security. Alternative lenders are more flexible and can lend based on a company’s cash flow.
• Relationships: The personal connection many business owners had with their bank is disappearing. Decisions at big banks are now often made by computer programs. Cantonal banks still offer a personal touch in their local area. Alternative platforms are direct and clear about their terms online.
• Cost: Bank interest rates may seem low, but they can have extra fees. Alternative platforms charge a higher rate, but it is an all-in cost with no hidden fees. For many businesses, the value of getting money quickly is worth the higher rate.

The time when a business had only one main bank, or “Hausbank,” is over. Today, smart businesses get money from different places. Using a mix of a cantonal bank, an alternative lending platform, and maybe a large bank creates a stronger financial plan.

The change in Swiss banking is here to stay. Businesses that wait for the old ways to come back will be left behind. Smart companies will succeed by using a mix of financing options.

For investors, this new landscape also creates opportunities. It is now more important than ever to have a balanced investment plan. Platforms like Capiwell help Swiss investors do so. They offer a way to balance high-risk, high-reward deals with more stable alternative investments. By using a multi-asset approach, investors can build a strong portfolio while helping Swiss businesses get the funding they need to grow.