Survey: Facing Disruption, Executives Concerned About Access to Capital

Seventy-five percent of middle-market executives — those representing firms with between $100 million and $3 billion in annual revenue — say that they will need additional capital to remain competitive when faced with disruption in their industry, according to a new survey released today by CapitalOne.

Fifteen percent of executives said that disruption in their industry had already had a material impact on their finances, and 32 percent said they expected such an impact within the next year. While more than two-thirds of executives across all industry said they had a banking relationship that could provide advice and support in the event of a disruptive event, 32 percent said they did not.

Banks remained a preferred source of funding for middle-market firms, the survey found; executives said that to meet their capital needs, they would consider seeking asset-based loans (38 percent) or asset securitization (36 percent). The survey also showed an appetite for alternative capital sources — 40 percent said they would consider a peer-to-peer loan, and 28 percent said they would consider crowdfunding.

Across all industries, a majority of executives said that they generally view disruption as an opportunity, and 60 percent said they were actively pursuing a disruptive strategy. Despite that, just one in six said they felt “quite or extremely prepared” to deal with a disruptive event. Executives agreed that big data analytics were likely to have the greatest chance of disrupting their business, followed by new mobile applications and capabilities.


About Author

Monica C. Meinert is a senior editor at the ABA Banking Journal and VP for editorial strategy at the American Bankers Association, where she oversees ABA Daily Newsbytes.