- 23 Aug
High Growth Companies Are 43% Short Of The Funding They Require
I recently reported that 59% of the 100 high growth businesses (turnover growing by more than 20% over the last 12 months) we interviewed said that they had less funding than they required. These businesses were using a combination of overdraft, loan and family money to fund their businesses. We went on to ask them how inadequate their funding was.
On average these high growth businesses that lacked funding said that they were 42.6% short of the level of funding that the needed.
Note that of the 12 users of invoice finance not one of them said that they had inadequate levels of funding, a stark contrast to the more conventional sources of growth finance that we cam across.
The detailed breakdown by funding source was as follows:
- Family money, overdraft and loan finance combination (1 respondent) - 50% short of funding
- Loan finance only (24 respondents) - on average 47.5% short of funding
- Family money only (12 respondents) - on average 45.8% short on funding
- Loan & overdraft combination funding (9 respondents) - on average 38.9% short on funding
- Overdraft only (12 respondents) - on average 33.3% short on funding
- Family money & overdraft combination funding (1 respondent) - 25% short on funding