Small- and medium-sized companies have few options to hedge against currency fluctuations. Two fintechs firms based in Switzerland plan to offer the services that banks have so far reserved for their large corporate customers.
The exchange rate of the Swiss franc against the euro was the major challenge facing Swiss companies in the past couple years. The country’s banks offered hedging solutions to their big clients, leaving small- and medium-sized companies struggling to cope.
Swisspeers, a crowd-lending-platform, and Amnis, a currency marketplace, aim to change this, according to research conducted by finews.com. The two fintechs firms have launched their crowd-lending solutions for small- and medium-sized companies with an option to switch currency.
Free to Choose
The companies are free to take out a loan in Swiss francs or euros. Later this year, they will also offer the repayment of loans in either francs or euros. Swisspeers confirmed it was planning to offer such a solution.
Apart from the strength of franc, Swiss companies mainly struggle with the fluctuation of exchange rates. Revenue and outlays typically are denominated in both francs and euros. Amnis says it is able to offer forex at lower prices for smaller sums than the banks.
Direct Investment
Small- and medium-sized companies are able to generate fresh capital from investors through Swisspeers, the crowd-lending platform founded a year ago. Investors may also like the chance to invest in smaller Swiss firms directly.
