- 30 May
How Do Fast Growing Businesses Get Funded?
Most Common Fast Growth Funding Methods
The most common form of funding used by fast growing businesses was a "loan" finance. The breakdown of funding sources used was as follows (note that some respondents stated multiple funding sources):
- 42% Loan
- 31% Overdraft
- 18% Family money
- 9% Invoice finance
Within these results there were 30% of our respondents that said that they had used two or more different "combination" methods of funding. The most common method of combination funding a high growth business was using overdraft and a loan together. The full list of combination funding methods used broke down as follows:
Combination Funding Methods
- 23% Overdraft and Loan
- 4% Family money, Overdraft and Loan
- 1% Family money and Overdraft
- 1% Overdraft, Loan and Invoice Finance
- 1% Family money, Overdraft, Loan and Invoice Finance
It is interesting to note that our survey didn't identify any fast growing businesses using funding types such as crowdfunding and peer-to-peer lending but the popularity of those may have grown since the survey. It did identify 59% of respondents as being unable to raise all the finance that they needed and it should be noted that none of the invoice finance users fell into that category.
Source: High Growth Survey 2013 (100 respondents with 20%+ turnover growth pa).