The former owner and manager of a private limited company recently acquired by a large plc, of which he is now a board member, said: ‘This company has grown very quickly over the past few years so that our sales revenue is now over £20m per annum. Even though we expect our revenue to grow further and double in the next two years I cannot see why we need to change our existing fi nancing arrangements. I know we need to make some large investments in new machinery over the next two years but in the past we’ve always operated successfully using our existing bank overdraft facility, which has been increased as required, particularly when we’ve needed new equipment. I don’t really see the need for all this talk about additional share capital and long-term loans.’ Discuss.