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The scale of the risk To quantify how suppliers might cope under accelerated demand, RapidRatings modelled a scenario in which suppliers experienced 50 % revenue growth while absorbing higher inflation, increased capital expenditure and greater working capital requirements.
“ The answer is actually different from what you’ d probably expect,” Charlie reveals.“ For many companies to handle that type of growth, they’ d need to raise capital to do it, more debt. Between 60 % and 80 % of the suppliers in the stress test would require additional borrowing to fund growth.”
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