Our market research survey of “high growth UK businesses” follows on from the series of business segments that we have surveyed recently. Our sample for this survey was a group of 100 fast growth businesses i.e. businesses that had grown their turnover by 20% or more over the last year.
The average growth rate across the respondents was 37.5% with the lowest being 20% and the highest 75%.
We asked those high growth businesses how they funded their businesses and 12% of the sample of high growth businesses used invoice finance, much higher than the average usage amongst the UK business population where we estimate less than 1% use invoice finance.
Invoice finance is clearly associated with high growth businesses which makes sense when you read our previous research that found that overdraft funding can represent just 2.6% of debtor outstandings whereas ABFA figures showed invoice finance releasing an average of 42% of the debtor outstandings.
For completeness, the distribution of growth rates amongst our sample was as follows:
- 20% growth – 18 respondents
- 25% growth – 18 respondents
- 30% growth – 8 respondents
- 35% growth – 11 respondents
- 40% growth – 9 respondents
- 45% growth – 9 respondents
- 50% growth – 19 respondents
- 75% growth – 8 respondents