Jon Bennett, commercial director of Close Brothers Asset Finance Print division
*Advertorial* Deep sector expertise with its more recent support for digital production makes Close Brothers Asset Finance a strong partner for digital print investment.
Close Brothers Asset Finance has been involved in the print industry since the 1980s, initially starting off funding Heidelberg presses. The firm has watched the industry change and adapt in the face of new challenges, ranging from the growth of the internet to online books, and has continued to lend money through multiple recessions and economic upturns.
‘We have always had faith in the sector,’ said Jon Bennett, commercial director, Close Brothers Asset Finance Print division. ‘And just as many thought the industry would struggle to compete with the speed, efficiency and adaptability of online communication, the print industry embraced developments in digital technology and made many advances of its own, while also redefining what makes print different and a powerful solution for a range of modern-day challenges.’
A place for print
The recent news that printed book sales in the UK rose for the first time in four years, and outperformed digital sales is welcome news; physical book sales in 2015 increased by £12 million from 2014 and digital sales dropped by £9m, the first year-on-year fall since 2011. The differential may be small, but its significance shouldn’t be underestimated because it reflects consumers’ changing tastes.
Stephen Lotinga, chief executive of The Publishers Association, recently said: ‘Those who made predictions about the death of the book may have underestimated just how much people love paper.’
Close Brothers made a clear commitment to digital printing a few years ago when its long-term customers signalled it was a move they were ready to make. To effectively support them, it embarked on a recruitment drive to find additional print industry specialists. It is now underwriting digital equipment successfully and helping more and more customers with digital investments.
‘I can confidently say that it has been good for all concerned and we’re looking to become even more heavily involved,’ said Mr Bennett.
Freedom and flexibility
Dealing with a funder like Close Brothers gives customers the freedom of choice to fund any asset they require. As well as funding the additional machine, the firm can also restructure existing finances to reduce outgoings, mitigating the impact of the new commitment. In addition, as a funder, it can structure alternative securities, potentially reducing the need for a deposit.
It can also support funding needs across the economic cycle for multiple asset types.
Close Brothers fully recognises the importance of digital in the printing industry and is excited by this growing sector. An example of that commitment is its sponsoring, and presenting, of an award at the Digital Printer Awards in London in November.
Industry developments
Digital printing has established itself as a thriving sub-sector within the print industry. It is becoming an increasingly vital part of the production process. Most people either have it or are looking to invest.
What is most exciting is the pace of the development. But this pace of change brings with it its own challenges – there can be a lack of equity in the machines that need be changed to produce deposits against the next investment.
Fortunately; however, asset finance can be used to create deposits from other assets or alternative security taken to make an upgrade possible. Close Brothers Asset Finance is able to move and adapt along with the market, being a flexible finance partner of choice.
‘Our appetite for lending hasn’t been diminished by the recent recession, in fact we are lending to more and more print businesses every year,’ adds Mr Bennett. ‘It is all part of Close Brothers Asset Finance’s commitment to the print sector in general and the digital print sector particularly. We want to be known as the specialist lender of choice in the digital print market, just like we are in litho, and we’re on our way to achieving that.’
To find out more how asset finance could help you and your specific
needs, speak to one of the finance specialists at Close Brothers Asset Finance on 020 8003 0744 or visit www.closeasset.co.uk/print
Vutek GS3250r inkjet press
Case study
Name: Venture Banners Ltd
Business Requirement: Investment in Vutek inkjet press
Solution: Hire Purchase via the RGF
Company profile
Venture Banners was started in January 2009 with the clear mission of making large format print available to the jobbing printer, enabling them to add this lucrative application to their existing services. Just 18 months later, after starting out from an office in a garage, the business was handling a turnover of close to a million pounds. There are now multiple machines and 22 people from production staff to web developers who are dedicated to provide all printers the opportunity to benefit from the firms’ economies of scale to build their own large-format revenue-stream.
Challenge
When founders Scott Conway and Wayne Bodimeade visited EFI in Belgium and saw the newly released Vutek GS3250r they knew that as soon as they were able to, they would have to invest in one. By September 2013 the company’s sales had increased significantly, pushing their current machines to full capacity and meaning that investment in the Vutek, which can produce full size banners at high speed, was justified. However, they didn’t have a sufficient deposit and cash flow had to be very carefully managed.
Solution
When Venture Banners contacted Close Brothers Asset Finance and explained the situation it was pleased to learn that its investment was eligible for a grant from the Regional Growth Fund. With the help of Close Brothers, Venture Banners was successful in gaining a grant of £30,000, which covered the deposit. Close Brothers then set up a Hire Purchase agreement to lend £150,000 to purchase the Vutek GS3250r.
Result
‘Our turnover has grown exponentially and business is booming,’ said co-founder Scott Conway. ‘We are based in a deprived area and have been able to create jobs for people who had been long-term unemployed.
‘The RGF does exactly what it says on the tin; it gave us a grant which in turn allowed us to access further finance to grow our business. It is a fantastic initiative and Close Brothers made it very easy, guiding us through the process.
This article is an advertorial; the featured company created the wording and paid for its placement. It has been thoroughly checked by Whitmar Publications to ensure that the information is accurate and meets our standards.
