Paul Philbrick, Sales Director for Close Brothers Asset Finance’s Print division, was recently interviewed by Print Monthly magazine.
What are the options available to print companies in terms of finance?
We offer all of the traditional types finance, including Hire Purchase and Leasing; however, in conjunction with certain suppliers we are also able to offer Consumable Agreements, which - if structured properly - can help a customer match their equipment purchase repayments to cashflow and the consumables they use with it.
Are there any alternative ways to access finance, that businesses may not be aware of?
Most business owners are fully aware about the various funding sources available to them and our own research confirms that, but It’s not always about finding an alternative ‘way’ to access finance but instead an alternative ‘approach’.
Speaking from the Close Brothers Asset Finance perspective, we spend time engaging with our customers to find meaningful ways to help them. The truth is that sometimes a standard 10% deposit over 60 months isn’t always the best solution - by taking time to understand our customers and their business we try to take the pressure away from any transaction so that they can get on and run their company.
Creating bespoke solutions for our customers is what we’re good at and we know our customers appreciate this.
What are the challenges with applying for finance? How can these be overcome?
Our research tells us Print & Packaging firms are confident about being able to access the funds they need in the coming 12 months and not many have been declined finance, so it doesn’t appear as if there are that many challenges standing in their way at this moment in the economic cycle.
But there lies a key challenge for business owners – when we inevitably move onto the next cycle how many firms are confident their funding partner will still be there for them? We know businesses don’t go bad overnight and we are there for the long-term, not only when times are good.
Why do companies in print look to apply for finance? Is it a case of something that’s beneficial to some, and not to others?
With the high cost of capital equipment most companies tend to finance the equipment they purchase overs its economic life. This protects their cashflow, which in turn gives a company more financial flexibility in the long-term.