Indigo Press are leading commercial lithographic printers, providing print services to both end users and trade re-sellers. Read on to learn how Close Brothers Asset Finance helped the business following the coronavirus lockdown in March 2020.
Following the onset of COVID-19, Indigo Press saw a halt in turnover in March, April and May and needed working capital.
To improve its situation, Indigo Press knew they needed to restructure the existing finance agreements it had with different lenders, in order to reduce its overheads for the upcoming year.
Tony Swift from Indigo Press approached Relationship Manager, Jordan Pocock at Close Brothers Asset Finance for assistance.
Jordan recommended that Indigo Press should utilise the Coronavirus Business Interruption Loan Scheme (CBILS) and restructure its existing debt with Close Brothers’ help. CBILS is a scheme that has been offered to customers during the COVID-19 crisis. The aim of this scheme is to provide working capital to smaller businesses in the UK, who are experiencing lost or deferred revenues due to coronavirus.
The scheme is backed by the government and provided by the British Business Bank. Once a business has been approved for CBILS the government makes a business interruption payment to cover the first 12 months of interest payments, as well as any lender-levied charges.
Close Brothers Asset Finance restructured the finance agreements of Indigo Press using the Coronavirus Business Interruption Loan Scheme (CBILS), raising an additional £250,000 of working capital in the process.
The restructure has led to Indigo Press consolidating its existing debt and freeing up the working capital necessary to help the firm trade through the current pandemic.
Jordan Pocock, Relationship Manager, added: “It was important to understand both Indigo Press’s current business and their future requirements. By re-structuring long-term debt and raising working capital with CBILS assistance, it meant the business could manage overheads for the foreseeable future and have a strong strategy moving forward. We are confident the facility will help Indigo Press trade successfully.”
Tony Swift, Indigo Press’s joint Managing Director, said: “We were looking for flexibility from our funder partner, which is exactly what we got with Close Brothers Asset Finance. I’d like to thank Close Brothers Asset Finance, for moving so quickly to restructure our agreements and free up the cash flow we needed.”
“The debt consolidation gave the business a clear indication on what their cash flow would look like for the next 12 months and beyond,” said Paul Philbrick, Sales Director at Close Brothers Asset Finance’s Print division. “The debt consolidation allowed a re-structuring of overheads and a reduction in monthly outgoings while creating a £250,000 cash facility, giving the business an element of flexibility.”