Foreign currency loan

We recently received through our website a loan request from a company seeking a relatively large sum: no less than 7’000’000 Chf ! Usually, this type of loan is difficult to achieve, and requires at a minimum:

  • An in-depth study of the company’s situation
  • Many documents to provide for study and analysis
  • Sometimes possible guarantees for the loan

In other words, such a loan, even if granted, requires administrative procedures that are often laborious!

Give his case to a specialist

The case was entrusted to our finance specialist for SMEs, Mr Aslan. The latter has managed the case effectively and manage the various administrative aspects. Quickly, our expert was able to find a solution: subdivide this large loan into foreign currency. In other words, the total sum was divided into several currencies, namely Swiss francs, euros and US dollars. In the end, the loan was subdivided as follows:

  • A loan in CHF of 1’340’000 CHF
  • A loan in EURO of 1’850’000 CHF
  • A loan in USD of CHF 3’700’000

A conversion into Swiss francs gives a total of nearly 7’000’000 CHF: goal achieved!

Why choose a foreign currency loan?

Everything will depend on the usefulness of the loan. If the money is destined to make a purchase abroad, it may be more advantageous to directly benefit from the foreign currencies concerned in order to avoid any loss related to the exchange.

For an international company whose revenues come from different countries, and therefore different currencies, it is also an additional security . Even in case of fluctuation of the currency market, an unfavorable exchange rate will not penalize the company, which will be able to continue repaying its credit directly thanks to its inflows in foreign currency.

Who to turn to for a “big credit”?

An intermediary like Multicredit (see page dedicated to SME solutions ), specialized in financial solutions for SMEs, remains the best alternative. In fact, banks are often reluctant to lend large sums to companies, and require substantial collateral and careful analysis of each file. An experienced intermediary will be able to take the lead and seek concrete solutions to guarantee not only a better chance of acceptance, but also a better loan rate.

What is the maximum limit of a loan?

Finally, the maximum limit depends directly on the financial situation and the size of the requesting firm. It is difficult to speak of a “maximum limit” because a self-employed self-employed person is unlikely to have the same borrowing capacity as a multinational in several countries. In the case of large companies, it may be possible for example to go up to sums of around 50’000’000 Chf . To know its maximum limit, it can again be interesting to contact a specialist who can inform you precisely and give a limit depending on the actual situation .