Factoring compared internationally

How Swiss companies use factoring

Factoring as a WCM solution is on the rise throughout Europe. However, factoring leads a shadowy existence in Switzerland compared with the rest of the world. Here you can find comparative figures and possible reasons for the reticence found in Switzerland.

Factoring compared internationally

Factoring as a WCM solution is on the rise throughout Europe. However, as the following image shows, factoring leads a shadowy existence in Switzerland compared with the rest of the world.

Factoring market: a comparison of Switzerland and Europe

Graphic showing the factoring market in Europe and Switzerland

This is particularly clear in comparison with Germany: in relation to gross domestic product, the use of factoring in Switzerland in 2015 was 50 times lower than in its neighbouring country.

Sales volumes from the factoring sector in Switzerland

Graphic showing factoring sales in Switzerland

Sales volumes from the factoring sector in Germany

Graphic showing factoring sales in Germany

Low interest rates and the strong equity base of many companies in Switzerland explain this reticence towards factoring. There is also a fear that factoring will entail significant additional bureaucracy, or that factoring providers – depending on how they are structured – will go after their own customers. The rather negative image of factoring in Switzerland may also stem from this. The following arguments counter such reservations:

  • Factoring provides the opportunity to further reduce finance charges, even in a low interest rate environment, while improving balance sheet figures at the same time.
  • The use of modern tools means that there is virtually no additional administrative workload.
  • Payment collection can still be carried out by your company.
  • With silent factoring, customers are not informed about factoring.
  • Almost all large companies use Supply Chain Finance instruments, and their deployment is also beneficial for SMEs in many cases.

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