Middle Market Companies Express Need for Multi-Funder Liquidity Solutions

Middle Market Companies Say Banks Not Supportive of Working Capital Needs

By Brian Medley • Published on September 29, 2021 • 3 minute read

According to data from the National Center for the Middle Market (NCMM), the middle market is equivalent to the 5th largest global economy. Nearly 200,000 businesses across all industries and geographies fall into this segment, and over the last 12 months, mid-size companies saw an average revenue growth of 8%. In the next 12 months, this segment is projected to grow 9.8%.

Despite mid-market companies’ significant presence in the global economy, many of these companies still lack accessible, competitively priced liquidity.

The problem lies in the fact that traditional financing for companies in the mid-market is typically expensive and inaccessible. Stand-alone financial institutions simply cannot cost-effectively meet financing demands due to low risk tolerance, technical deficiencies, limited resources, and more.

Further, as the modern business landscape becomes increasingly global, single bank programs often lack the currency and jurisdictional coverage that mid-market companies need to sustain and scale the business.

An Approachable Solution for Businesses of all Sizes

While it is a common misconception that trade finance is reserved for large, investment-grade enterprises, middle market businesses are realizing alternative liquidity solutions are more viable than they thought.

A popular alternative among mid-market companies is multi-funder supply chain finance and accounts receivable finance, which offer affordable capital and increased control over cash flow.

Unlike single bank-led programs, the competitive nature of a multi-funder approach provides continuous funding at affordable rates – without negatively impacting the balance sheet. A key benefit of this approach is the flexibility of program funding. With more than 100 financial institutions in PrimeRevenue’s funding network, middle market companies have access to a wide variety of funders that have an appetite for middle market companies.

As the program grows or the needs change, a multi-funder approach also ensures companies have access to financial institutions around the world, so they know they’re covered today and tomorrow as the company expands.

If you’re interested in learning more about how PrimeRevenue can solve your businesses’ working capital needs, contact us to get in touch with a working capital expert.