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• 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).

  By Glenn Blackman