11 June 2020

Purchase with CBILS

The COVID-19 pandemic has been a challenge for most businesses and these are certainly unprecedented times; something none of us have experienced before.

Buying a new press at the moment may seem counter intuitive however, with new Government measures being put in place to ease some of the burden, such as the CBILS loan and asset purchase facilities, there may also be opportunities for eligible companies to take advantage of.

This is an area that Exel have been heavily involved in, using their long standing relationships with the active banks in the print sector they have been helping our customers access the best possible sources of funding for investing in newer equipment using the CBILS facility.

A CBILS asset purchase agreement can be a way of updating your current machinery for today's technology, with no deposit and the Government paying the interest for the first 12 months. Effectively interest free for the first year saving approximately 40% on the total interest cost on a 5 year deal, one customer was recently quoted a saving of £84,492 in interest over the term on a XL106-5LX. Some lenders can also now offer No payments for 12 months.

CBILS offers considerable advantages

1. You can apply for more than one CBILS loan - if you have already been successful with your bank then our finance partners are offering further CBILS loans
2. No deposit finance, usually a least 10% would be required
3. The net sale proceeds of your current equipment could be put straight back into the business or used as you see fit
4. In the event your current press has negative equity you still have the opportunity to upgrade to newer technology with CBILS covering any shortfall on existing finance, possibly even keeping monthly payments the same
5. The disruption of an installation can be completed whilst the factory is relatively quiet and when production returns to normal levels the new equipment will be fully commissioned and ready to ramp up
6. You can upgrade your equipment for the foreseeable future and save money now

This is a unique situation which many companies are taking full advantage of, however there is a short window of opportunity as all agreements must be finalised by early September this year after which the arrangement will no longer be available and the cost of any future investment will increase significantly, is this a business decision not to be over looked?

To discuss further please contact Ian Bendy, Sales Director for Exel Printing Machinery Ltd at [email protected].