Here’s how Close Brothers Asset Finance continued to support a new business and enable it to maintain cash flow with tailor-made finance.
Established in 2015, founder and CEO of CloudNC Ltd, Theo Saville, had the vision to completely automate the programming of a CNC machine. By utilising his manufacturing and entrepreneurial background, Theo set up CloudNC to cater for a wide range of sectors from military to advanced 3D printing.
CloudNC already had an established working relationship with Close Brothers Asset Finance through the purchase of a HAAS VF2 milling machine to run its software on. The success and result of this machinery installation proved its model worked.
Currently a skilled machinist must use CAM (Computer Aided Manufacturing) software to tell the CNC machine exactly what to do, and with small batches / single units this can account for more than 90% of the cost of production and is extremely time consuming. But with a 3D file, within minutes it will tell a CNC machine how to make it, resulting in cheaper manufacturing costs, a significant drop in lead time and greatly increased accuracy in the components produced.
Having already financed a few smaller CNC machines to test the software in 2017/2018, Close Brothers Asset Finance were keen to continue the support for CloudNC, based on the belief in the business and its potential.
CloudNC was now looking to invest in new top of the range Mazak 5-Axis CNC machining centres to complement the software and fully utilise the machines capabilities and potential.
Keen to preserve cashflow, the business wanted a finance product with a hard-line term of 72 months with no deposit.
Theo Saville met with Henry Ranshaw, Area Sales Manager, Close Brothers Asset Finance to discuss finance options. Henry found the best solution to support CloudNC’s requirements, would be a tailor-made Hire Purchase product. By way of taking 25% of the asset cost into a ‘Blocked Deposit Account’ set up with Close
Brothers Treasury and holding these funds for a period of 16 months, then releasing back to the customer based on the account being run correctly, would allow Close Brothers Asset Finance to mitigate any risks. The customer would also retain the much-needed capital to progress the business moving forward.
A successful Hire Purchase deal was put in place of £1.175 million for the requested 72 month term with no deposit, allowing the purchase of the new machines.
Theo Saville said: “We are delighted with the new machines which are fully integrated and working with our software. Henry and the team at Close Brothers understand our business requirements and it is why we continue to work with them. We are now in the best place to move the business forward through cost effective manufacturing.”