Close Brothers Asset Finance has arranged a bespoke CBILS (Coronavirus Business Interruption Loan Scheme) Hire Purchase agreement for Savcon Engineering to fund the purchase of the firm’s second Mazak 6Kw fibre laser processing machine, which allows for cutting with high-speed and high-accuracy performed by automatic setup.
Based in Stratford-upon-Avon, Savcon Engineering manufactures CNC machining and turning, presswork and large-scale fabrication, including various components for the agricultural industry, vehicle suspension parts, and high-precision components for the electronic industry, among other items.
Andrew Maude, Area Sales Manager for Close Brothers Asset Finance’s Engineering division, explains more about this deal: “Coming out of the earlier lockdown, Savcon Engineering’s order book increased rapidly as customer projects started moving again, but with their existing Mazak laser running round the clock they understood that to keep up with demand they would need to subcontract work out, costing an estimated £30k per month.
“And with only one laser, they also feared being exposed to breakdowns and a complete stop to production. The new laser will allow them to significantly speed up production while also taking full control of production to give the best service possible to their customers.
“The flexible nature of CBILS meant we could offer a 0% deposit deal, allowing Savcon Engineering to keep their cash flow intact, freeing up cash to buy the materials required to cope with the growth in the order book.”
Rob Stone, CEO of Savcon Engineering added: “This was a significant investment for us but it’s one we needed to make if we were going to continue growing the business and keep up with demand.
“We’re really pleased with the flexible way Close Brothers Asset Finance structured the deal, understanding the importance of keeping cash flow unaffected. This partnership approach is something we truly value - they clearly understood what we wanted to do and worked out a deal that suited our needs.”