acsec access to capital by brian knight

8/20/2019 ACSEC Access to Capital by Brian Knight

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Access to CaHow Small and Mid-size Businesses are Funding

Associate Director, Financial Policy, Center fo


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Milken Institute Center for Financial Mark

1101 New York Ave., NW

Suite 620Washington, D.C. 20005


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Access to Capital Report

Co-authored with the National Center for the

Middle Market

Survey of 636 owners and c-suite executives ofprivate companies with total annual revenuesfrom $1 billion, administered

January 22 – February 6, 2015.

Provides a snapshot of small and middle-marketfirms’ corporate financing structures andapproaches to raising capital.

Report available at: http://bit.ly/1JHLqT1

https://t.co/wH3H623WEMhttps://t.co/wH3H623WEM


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Key Findings

1. Debt is preferred method of outside financing

2. Firms value price, ease of access, speed of funding, and certaevaluating sources of funding.

3. Firms are uncertain whether bank or non-bank financing is su

are influenced by their relationship with their bank.

4. Firms had low understanding and interest in alternative sourceand recent securities law changes


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Methods of Raising Capital Used in the Last Thr


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Types of Debt a Firm Currently Has


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Sources that will Fund Expansion in the Coming


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Self-funding Near-term Expansion Plans


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Methods of Raising Capital in the Next Three Ye


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Importance of Factors when Considering Financ


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Impact of Factors on Decision to Use NonbanksFinancing


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Are Nonbank Sources of Capital Superior to TraLenders?


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Are Nonbank Sources of Capital Superior to TraLenders?


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Reasons a Company Would Consider BorrowingBank


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Considerations when Borrowing from a Bank


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Perception of Borrowing Costs


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Right Amount of Debt for Company


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Most Important Driver of Current Debt Levels


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Debt-to-Asset Ratio


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Total Debt of Firm Regardless of Source


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Awareness of Nontraditional Sources of Capital


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Familiarity with Securities Law Changes

N M th d C W ld C id U i


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New Methods Company Would Consider Using Future


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Reasons Would Consider Using a New Funding

Reasons Would be Hesitant or Unwilling to Use


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Reasons Would be Hesitant or Unwilling to UseMethods of Financing


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Whether Company is Listed on a Stock Exchang


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Biggest Barrier that Would Prevent Listing

Extent to which Expansion Plans are Subject to


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Extent to which Expansion Plans are Subject to of Capital

Extent to Which Expansion Plans are Subject to


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Extent to Which Expansion Plans are Subject toof Capital

acsec access to capital by brian knight

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