In Switzerland, there has been a considerable increase in the rate of corporate bankruptcies, which grew by over 26% in the 2nd quarter alone. What are the reasons for this hike?
Over the past few years, the number of new company start-ups has been unusually high. However, about one in five of these start-ups failed to survive their first year in business and had to be abandoned after twelve months.
In addition, many businesses were provided with bridging loans at advantageous rates during the coronavirus pandemic. Unfortunately, some of these businesses got into financial difficulties and failed to repay their loans, which eventually drove them into insolvency.
Another reason for the sharp rise is a change in the law in Switzerland. Since 1st January 2025, it has been possible for tax liabilities to be pursued as far as bankruptcy if the debtors are listed in the Commercial Register.
How can businesses minimise the risk of payment defaults?
CRIF offers a variety of solutions and products that allow you to carry out rigorous assessments of your credit risks and reach reliable conclusions for your business:
Every trustworthy business transaction is based on the unambiguous identification of individuals and corporations. Correct business names, accurate address particulars and detailed information about contact persons are all essential so that any fraudulent intentions can be detected at an early stage and the contractual capacity of potential partners can be verified reliably.
Information related to financial standing (such as details of any debt enforcements, debt collection procedures and filings for bankruptcy) forms the basis for a reliable evaluation of creditworthiness. You can use a CRIF credit check to carry out a sound assessment of your business relationships and take risk-aware decisions.
Customer relationships change over time, as do the associated risks. In the case of long-term business relationships in particular, it’s worth keeping a regular eye on the company’s structure, changes in management, signatory powers and financial standing so that you can recognise any exposure to the risk of loss at an early stage.
Precise identification, in-depth credit checks and the ongoing monitoring of existing customer relationships allow companies to recognise risks at an early stage, take sound decisions and protect themselves against payment defaults.
