New research by ThinCats has found that mid-sized companies that borrow are sixteen times more likely to achieve growth than face insolvency.
The data found that companies that borrowed were more likely to achieve growth than non-borrowers, with the level of borrowing proportional to growth potential.
Nearly 40% of mid-market SMEs have achieved revenue growth of at least 5% above inflation in the last two years. Companies borrowing significant amounts (i.e. over £5 million) are sixteen times more likely to achieve super growth (50% above inflation) than to face insolvency.
The combination of private equity (PE) backing and debt financing increases the chances of achieving any level of growth. The data shows that in the…
