Home Finance Business Finance Researching The Market Recent Results For Fast Growing Companies

Business Finance Researching The Market Recent Results For Fast Growing Companies

by Ruben Trevor

We surveyed an example of 100 high growth companies and requested them regarding their business financing, the effects of the funding choices and how much invoice finance performed a job.

We opted for random sample of companies in which the only common factor was their sales turnover had grown by 20% or even more over the year before – these we designated as “high growth” companies.

We began by asking if they were in a position to raise all of the finance they needed. Only 41% from the respondents had had the ability to raise enough funding.

Inside our sample we discovered that 12% were users of factoring and invoice factoring plus they all confirmed that they sourced sufficient funding. This proportion among fast growth companies is a lot greater compared to average distribution seen among companies generally, which we’ve formerly believed to become under 1%.

We identified an additional segment which we known as the “maximum growth” segment. They were companies that stated that they are not able to develop any quicker than these were already growing. 52% of the segment stated they used invoice finance to finance their business that is high in comparison with the standard average distribution of under 1%.

There have been 59% from the final amount of respondents to the survey that stated that they not had the ability to raise enough finance. They continued to inform us that typically these were 43% lacking the funding they needed.

We requested these companies with funding limitations which kind of funding they’d used. The outcomes were the following:

48% Loan

32% Overdraft

20% Family money

We continued to inquire about them concerning the results of these limitations on their own companies which were the effects they stated had come to light from not getting had enough funding:

43% Needed to turn lower business

24% Now owed money

15% Grew to become loss making

9% Needed to eliminate staff

5% Had poor income

4% Did not grow as predicted

Then we requested the 59% with funding limitations when they had considered invoice finance being an option. 84% of the segment did not see it as a choice and fundamental essentials main reasons they gave because of not getting considered it:

34% did not think invoice finance was a choice

24% had not heard about invoice finance

27% stated it had not been offered

12% stated they’d heard it had become costly

To summarise, our study has identified there are significant funding limitations among high growth busnesses. You will find alternatives available which appear to satisfy their funding needs but many fast growing companies exhibit too little awareness and knowledge of these alternatives.

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