In Switzerland, bank loan financing can be put in place quickly and on a confidential basis. Bank loans are in principle not subject to any to any prospectus, filing or registration requirements.
Interest payable under bank loans are not subject to Swiss withholding tax, provided the “Swiss 10/20/100 non-bank rules” are complied with.
Security interest can be granted (i) on specific assets and claims (e.g. pledge of shares, assignment of claims) and (ii) on a personal basis (e.g. guarantee and suretyship).
The issuance of a downstream (i.e. in favour of a direct or indirect subsidiary) guarantee by a Swiss corporate entity is in principle not problematic. However, some limitations apply to cross-stream (i.e. in favour of a sister or cousin company) or upstream (i.e. in favour of a parent company) guarantees.
