Asset Finance - case study: Printing Sector

Background:
Our client, a large scale commercial printer in the West of Scotland, wanted to expand their business by purchasing new high tech digital print equipment. It was a move away from their traditional print methods and coincided with a group restructure. The restructure included the payment of lump sums to several outgoing directors.

Problem and Opportunity
In total, a funding package of £500k was required. Their existing bank had already refused the extra funding due to existing overdraft pressures coupled with perceived poor security offered by the new digital print equipment. The directors did not wish to provide additional personal security.

Solution
The key issue was in structuring a proposal which addressed the lenders concerns whilst also achieving the aims of the directors. A funding package was obtained from a specialist provider. This released equity in existing plant and provided additional funds allowing the client to purchase the new equipment. The funding allowed the group restructure to take place and the business move forward to a new chapter in it.s history. This was achieved without any additional personal security from the client.

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