Close Brothers Asset Finance has provided Luff Engineering with a bespoke CBILS (Coronavirus Business Interruption Loan Scheme) Hire Purchase agreement to finance the purchase of a new Grob G350 5-axis machining centre, which allows for the milling of parts made of a wide variety of materials.
Formed around 15 years ago, Wolverhampton-based, Luff Engineering is a sub-contract machine shop that predominantly machines cast iron parts but also aluminium.
The new machine was purchased as a replacement for a machining centre that was becoming inoperable, and to service new work being promised by existing customers. It also increased their production capacity, allowing them to increase their customer base.
Andrew Maude, Area Sales Manager for Close Brothers Asset Finance’s Engineering division, explains more about this complex deal: “Luff Engineering had an existing finance agreement with us with around nine months remaining and we contra-settled the existing agreement, rolling it into the new agreement, meaning the customer didn’t have to put a deposit down on the new machine, conserving their cash flow; it also meant they only had one monthly direct debit to pay rather than two.
“At the same time, we settled off an existing BBLS (Bounce Back Loan Scheme) loan he had taken at start of the pandemic, which made him eligible for CBILS.”
Jason McDonnell, Managing Director of Luff Engineering added: “The previous machine was getting difficult to maintain and we needed to move on to something that could cope with our increased workload.
“We’ve been working with Close Brothers Asset Finance for some time now and we were confident they could structure a funding deal that would work for us, and I’m delighted that they’ve been able to do just that.
“Industry knowledge is really important, which is where Close Brothers Asset Finance really stands out. They clearly understood what we wanted to do and worked out a deal that suited our needs.”