Many mid-sized companies are still struggling with growth after the recession. Finance executives recognize the need to increase investment across areas like technology, facilities, staffing, and marketing to fuel growth. However, over half of executives say their companies are not doing any better than a year ago. To support this increased investment, many companies will need to seek funding from commercial lenders beyond their own operating cash flows and reserves. The document suggests that lenders can help these mid-sized clients by understanding their unique business challenges, providing customized funding solutions, and assisting with regulatory requirements to help companies achieve their growth ambitions.
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Fueling Your Company’s Growth
NOT DOING ANY BETTER
THAN A YEAR AGO
43%*
41%TECHNOLOGY, SOFTWARE
AND INFORMATION SYSTEMS
26%FACILITIES OR
REAL ESTATE
OPERATING
CASH FLOW
67%
CASH
RESERVES
38%
DEBT
FINANCING
49%
EQUITY
FINANCING
16%
30%STAFFING OR
HEADCOUNT
24%CAPITAL
EQUIPMENT
30%SALES AND
MARKETING
20%M&A
MY COMPANY FREQUENTLY REVIEWS AND
REVISES ITS STRATEGY TO ADAPT TO
CHANGES IN THE BUSINESS ENVIRONMENT
To steer their companies back towards
growth, corporate leaders are constantly
re-evaluating strategies and making
adjustments.
With the recession in the rearview
mirror, many mid-sized companies
are still stuck in idle.
Finance executives at mid-sized companies know that
they’ll need to fuel corporate growth by increasing
investment across a number of different areas.
To get where they want to go, many also recognize that
they’ll need to look beyond their own resources and seek
funding from commercial lenders.
Many executives are looking for help in meeting the variety of
challenges to growth they say they are facing.
HOW CAN LENDERS HELP?
“What are your company’s top priorities for increased investment?
Please choose all that apply.”
“Which types of funding sources will be most important to
support your company’s growth over the next year? Please choose
all that apply.”
“What are the most significant challenges or changes your
company is facing?”
“Finding lending
sources
with sufficient
capital to
meet our needs
as demand
accelerates.”
“Regulatory
environment
and associated
costs ... will
limit organic
growth, so
growth will
come from
acquisition.”
“More opportunities
than we have capital.”
“Continual shift to more
business on the internet.”
“Expanding into new
territories, which uses
up free cash or takes us
deeper into borrowing.”
To help mid-sized clients realize their growth
ambitions, commercial lenders have the opportunity
to step up and differentiate themselves through
value-added service—understanding their clients’
business and challenges, working with them to
provide customized solutions, and helping them
navigate increasingly complex regulatory and
documentation requirements.
2014 2015
79%
*All results are from an online survey of 173 finance executives working at companies with revenues between $25 million
and $1 billion. The survey was conducted in the first quarter of 2015, and covered a range of industries.