This article was published just ahead of the Swiss National Bank’s monetary policy assessment on 11 December 2025.
Switzerland’s borrowing costs have reached historic lows. The Swiss National Bank (SNB) cut its policy rate to 0% in June 2025, completing a year of steady cuts that began in December 2024. On December 11, the SNB will announce its final rate decision of the year. Economists expect the rate to hold at 0% through 2026[1][2].
For Swiss SME owners across sectors from CleanTech to FinTech, these rate cuts changed financing costs throughout 2025. This shift affects working capital loans, equipment financing, and bridge capital for growth-stage companies. The question now is what this low-rate environment means for business financing decisions in 2026.
A Period of Rate Cuts
The SNB cut rates four times across 2024 and 2025. On December 12, 2024, the bank lowered the policy rate by 50 basis points to 0.5%[3]. This move marked the steepest single cut since January 2015. The SNB cited reduced inflation pressure and Swiss franc strength as key drivers.
The cuts continued into 2025. In March, the rate dropped to 0.25%[4]. By June, it reached 0%[5]. The September meeting held rates steady at 0%[6]. Each cut responded to inflation falling well below the SNB’s 0-2% target range. November 2025 inflation hit 0.0%, sitting at the bottom of the target band[1].
How Rate Cuts Translate to Business Loan Costs
Policy rate changes affect real borrowing costs through several paths. The Swiss Federal Tax Administration reduced its safe harbour interest rates for equity-financed loans from 1.5% in 2024 to 1.0% in 2025[7]. These minimum rates apply to intercompany loans and shareholder advances, common structures for startup and SME financing.
Alternative lending platforms now offer rates between 4.9% and 9.9% for SME loans, depending on creditworthiness[8]. The strongest borrowers can access rates as low as 0.8% to 1.5% on select platforms. Traditional bank lending rates have also eased, with the World Bank reporting Swiss lending rates around 2.98% for 2024[9].
Short-term financing benefits most from rate cuts. Loans linked to the Swiss Average Rate Overnight (SARON) adjust quickly when the SNB cuts rates. Fixed-rate loans price in longer-term expectations and move more slowly. For SMEs seeking 3-6 month working capital loans, the current environment offers borrowing costs well below historical averages.
Industry-Specific Impacts: Who Benefits Most
Different sectors show varying sensitivity to rate changes based on capital needs.
BioTech and Health
These sectors recorded CHF 739.2 million in funding during 2024, up 50% from the prior year[10]. BioTech companies face high R&D costs and long development cycles. Lower safe harbour rates reduce the cost of shareholder loans used to bridge between equity rounds. Clinical trial financing and equipment purchases benefit from reduced interest expense.
CleanTech
This sector saw record financing activity in 2024, with more than 70 funding rounds[11]. CleanTech hardware projects require substantial upfront capital for manufacturing and deployment. Lower rates improve project returns by reducing the cost of debt used alongside equity capital. The Technology Fund offers loan guarantees specifically for Swiss CleanTech companies, making bank financing more accessible[12].
FinTech
Despite a 58.5% funding decline in early 2024, FinTech companies still raised CHF 193 million for the full year[13]. These businesses often need working capital to fund customer acquisition before achieving profitability. Short-term loans at current low rates provide flexible growth capital without equity dilution.
AI and Machine Learning
Investment in AI startups doubled in 2024[14]. While these companies often rely on equity, debt can fund specific growth initiatives like server infrastructure or hiring ahead of the next funding round. Lower rates make this bridge financing more attractive.
AgriTech
Included in broader CleanTech statistics, AgriTech ventures benefit from lower equipment financing costs for precision agriculture technology and sustainable farming infrastructure.
What December 11 Means for 2026 Financing Plans
The SNB will announce its rate decision on December 11, 2025. Market consensus expects no change, with rates holding at 0%[1][2]. Multiple economists forecast rates will remain at 0% throughout 2026.
Karsten Junius at J.Safra Sarasin stated there is “no need for policy changes”[1]. Rudolf Minsch at economiesuisse expects inflation to rise to around 0.4% in 2026, not high enough to prompt rate increases[1]. He noted that “negative interest rates also have undesirable effects, and are only used when there is an urgent necessity, which we don’t see.”
This outlook creates a clear planning window. SMEs can structure financing with confidence that rates will remain stable through 2026. Companies considering expansion, equipment purchases, or working capital needs face a favorable environment. Waiting for further rate cuts appears unlikely to yield additional savings, as negative rates remain improbable according to expert consensus.
Geographic Variations: Cantonal Differences
Swiss SME borrowing costs vary by canton due to tax and structural factors. Debt interest is tax-deductible, so the after-tax cost of loans differs between high-tax cantons like Geneva and low-tax cantons like Zug[15].
Cantonal banks, with a combined balance sheet of CHF 812 billion, serve as primary lenders to local SMEs[16]. These banks benefit from state guarantees, which lower their cost of capital. Regional loan guarantee cooperatives, supported by the federal government, help SMEs access bank credit by guaranteeing loans up to CHF 1 million[17].
Marketplace Lending Growth Shows Strong Demand
Alternative lending platforms saw record activity in 2024. Marketplace lending volumes reached CHF 21.4 billion, double the level from five years prior[18]. This growth reflects both increased institutional investor participation and SME demand as traditional banks faced tighter lending conditions following Basel III implementation.
The return to 0% rates makes traditional savings accounts offer zero real return. This drives investors toward SME lending platforms like CapiWell, where average net returns reached around 3% per annum in 2024-2025[19]. Higher investor appetite translates to more capital available for SME borrowers.
Bank Versus Platform Response Speed
Traditional Swiss banks often use an imputed interest rate of around 5% to test affordability, regardless of how low the SNB rate drops[20]. This calculation method can limit SME borrowing capacity even when rates are low.
Alternative lending platforms typically do not use imputed rates for affordability checks. The actual low rates in 2024-2025 translate more directly into increased borrowing capacity for SMEs on these platforms. Platforms also adjust pricing faster than banks, which generally follow quarterly review cycles.
Marketplace lending platforms provide transparent rate bands based on credit scores. Traditional bank lending involves individual assessments with less transparent pricing. This transparency helps SMEs compare options and understand true borrowing costs.
For Investors: What Low Rates Mean for Returns
From an investor perspective, the 0% policy rate creates challenges for traditional fixed-income investments. Swiss government bonds offer minimal yields. This pushes institutional investors including pension funds and family offices toward alternative sources of return.
SME lending provides yields around 3% despite the low-rate environment[19]. This spread over the 0% risk-free rate makes SME loans attractive. Survey data from 2025 showed 69% of respondents rated new investment opportunities as “good,” up from 59% the prior year[21].
Strong investor demand supports robust capital availability for SMEs. As long as rates remain low, this dynamic should continue through 2026.
Timing Considerations for SME Owners
With rates at 0% and expected to hold through 2026, borrowing costs are at historic lows. Companies with near-term financing needs face favorable conditions. The combination of low policy rates, competitive marketplace lending, and strong investor appetite creates an advantageous environment.
SMEs should still focus on core creditworthiness factors. Banks and platforms conduct annual credit reviews. Higher equity levels, reduced debt relative to revenue, and strong liquidity positions improve financing terms regardless of the rate environment.
Business plans with detailed forecasts and professional financial documentation help secure better terms. In Switzerland’s relationship-driven banking culture, long-standing bank relationships continue to matter for traditional financing channels.
A Platform Solution for the Current Environment
Platforms like CapiWell, which is designed to help private investors place money across multiple asset classes, allow business owners to access capital for working capital, growth financing, or bridge loans.
Features like transparent pricing (with all fees disclosed upfront) and rigorous credit and compliance evaluation align with how SMEs actually use debt in low-rate environments. Digital-first platforms also overcome geographic barriers, serving innovative SMEs across Switzerland rather than concentrating only in Zurich and Geneva.
References
- Reuters, “SNB expected to avoid negative rates despite inflation downturn” (December 3, 2025)
- Swiss Life, “SNB maintains zero interest rate policy” (October 2025)
- Swiss National Bank, “Monetary Policy Assessment” (December 12, 2024)
- Swiss National Bank, “Monetary Policy Assessment” (March 20, 2025)
- Swiss National Bank, “Monetary Policy Assessment” (June 19, 2025)
- Trading Economics, “Switzerland Interest Rate” (September 2025)
- PwC Switzerland, “Updated safe harbour interest rates for 2025”
- LEND.ch, “Business loan for SMEs & Self-Employed in Switzerland”
- World Bank, “Switzerland – Lending Interest Rate” (2024 Data)
- GGBA Swiss, “Swiss start-ups secure CHF 2.4 billion in 2024”
- FintechNews CH, “Swiss VC Funding Surges, Driven by Biotech, ICT and Fintech”
- Technology Fund Switzerland, “Program Overview”
- EY Switzerland, “Startup Barometer Switzerland 2025”
- EY Switzerland, “Startup Barometer Switzerland 2025”
- Fiduciaire Genevoise, “Cantonal Tax Rates in Switzerland 2025”
- Easy Global Banking, “Inside Swiss Cantonal Banks: Stability & 2025 Forecast”
- SECO, “Guarantee cooperatives for SMEs”
- Swiss Marketplace Lending Association, “CHF 21.4 Billion New Loans in 2024”
- SME Lending Fund Switzerland, “SICAV Performance Data”
- SWI swissinfo.ch, “Mortgages in Switzerland: how the system works”
- Startupticker/SECA, “Swiss Investor Survey” (2025)
