Working capital finance market

Working capital finance market

April 9, 2020


Switzerland is very successful in many areas thanks to possessing a unique combination of international orientation and national virtues. This is impressively demonstrated by the high number of Swiss world market leaders occupying the top spots when it comes to innovation rankings. In addition, the Swiss financial industry is constantly developing new and exciting solutions for the global market. One example: Working Capital Finance bundling together the areas of debtor and creditor finance.

The global economy is estimated at EUR 90 trillion (gross domestic product). The potential for debtor and creditor financing solutions is correspondingly estimated at around EUR 20 trillion worldwide. In Europe alone, experts assume a market volume of EUR 4 trillion per year (of which EUR 1.7 trillion is debtor financing). Three sectors dominate the existing business: manufacturing, services and distribution. At the same time, the market is growing at over 7% per year, with a market penetration of only 11%. Creditor financing programs are more widespread, used by around 55% of all companies and a further 41% are under review. In this area, reverse factoring is the most widespread solution in Europe.

There are only a few providers of such financing solutions due to the high complexity of processing and risk management. Due to this, most banks have withdrawn from the business. At Pactum, we combine our expertise with our Swiss quality standards, as evidenced by our FINMA license as a CISA asset manager. Hence, we offer our financing clients and investors intelligent solutions based on our many years of experience.