Eighty percent of the businesses surveyed say they have completed refinancing, compared with 52% in October 2010.
Capital market conditions continue to strengthen
Almost 60% of companies say capital market conditions are continuing to improve. Thirty-eight percent say access to funding for capital projects is not a problem. And balance sheet leverage remains low: only 13% of companies in the survey have a debt-to-capital ratio above 50%; the majority are below 25%.
With banks re-establishing their capital positions and interest rates low, financing for deals is increasingly available. The preferred sources for funding over the next six months remain cash (59%) and bank loans (36%).
What will be your main source of deal financing in thenext 6–12 months?
The pressure to refinance is over for leading companies
Over the past six months, the percentage of companies that have refinanced has significantly increased. Eighty percent of the businesses surveyed say they have completed refinancing, compared with 52% in October 2010.
But for those that need to refinance, the speed with which they need funds is increasing rapidly. Nearly two-thirds (63%) need to refinance within six months, a three-fold increase since October 2010.
The results point to the availability of financing as a polarizing factor among boardrooms — dividing the corporate landscape into those who are thriving and well-placed to grow organically or through M&A and those who are struggling and lack the capital to compete.
|80% || || |
of businesses in the survey have now completed or have no need to refinance.
Which of the following most accurately describesyour company's debt/refinancing situation?
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