State Securities provides essential funding to enable expansion of North East printing company
Key points :
Tuesday, 03 October 2006: By tailoring a bespoke packaged finance deal, leading asset funder State Securities has enabled a North East based printing customer to expand significantly its operations. The funding deal has enabled the State Securities’ customer at a stroke to purchase another printing operation, acquire its printing machinery assets and expand its customer base.
Kevin Dew, Account Manager, State Securities, commented, “The printing company was a fairly new business where cash flow could not support the level of deposit required to buy the sought after business. By implementing a Hire Purchase agreement in conjunction with a Small Firms Loan Guarantee facility (SFLG), we were able to provide a funding line of £230k, enabling the customer to complete the purchase. By spreading the repayments over a 5 year term the customer was able to offset the payments against the increased turnover and profit thus leaving critical cash flow unaffected. In addition, the Government-backed SFLG facility provided vital funding for the deal, by raising working capital to cover the moving costs. This is a good example of how the SFLG can be used to assist businesses in reaching their potential as the assets alone did not raise the required security to cover stock and goodwill. The opportunity for expansion has also been realised with the acquisition of a five colour printing press and an established customer base.”
The deal demonstrates State Securities’ expertise and flexibility in creating a bespoke finance solution where other lenders may not have the resources, facilities or appetite to do so.
Contact : Kevin Dew, tel 01489 775623 or visit www.statesecurities.co.uk
Notes to Editors :
State Securities provides commercial mortgage finance or re-finance on industrial, commercial, retail and office premises for owner occupation or investment (buy to rent). Sub-prime, new starts and financially challenging credits are our speciality. Clients include public and private limited companies, partnerships and sole traders. Such finance can be provided in conjunction with asset finance and the Small Firms Loan Guarantee Scheme.
State Securities supports a wide range of clients, including public and private limited companies, partnerships and sole traders, and can also help companies that have difficulty in raising finance in a short period of time, for example new start businesses. Additionally, it specialises in assisting businesses in company or individual voluntary arrangements.