Many printers have been unable to raise finance to invest in new presses over the past 18 months as the impact of the Credit Crunch and the consequential recession led to many banks closing their books to new lending.
However, Mark Nelson, of Compass Business Finance, claimed that the right business, with the right plan, could attract finance for new investment. He said the majority of banks and finance houses are open for business so long as the right application is made to the right lender.
"The general view is that the exhibition is arriving at a good time, with the economy in a state of recovery and many printers needing to look at investment," he said.
"A level of stability returned to the market during the latter part of 2009 and, although the availability of credit has not returned to the commercial levels of 2006, there is now a consistency to underwriting decisions that allows us to know where to place a deal."
He added that printers should be aware that, despite the increase in credit, finance houses require a detailed plan with a clear rationale for investment and that preparations should be made in advance for anyone considering investing.
David Bunker, of Close Print Finance, said that, despite the low base interest rate, the supply of money for investment from the big banks has dwindled and much of the firm's business had come from banks referring clients due to their reluctance to fund printers.
"I think the availability of credit from high-street banks will be limited to those companies with a strong balance sheet and big deposits.
"We are consistently seeing proposals that involve collateral security being needed for investments. It will take time for liquidity to return through the big banks and, when it does return, they will start pricing in risk."
However, Compass's view was countered by Gerry Hoare, of Deal Bureau, who said that attracting finance could remain difficult until the third quarter of the year.
He said that the cost of finance remained high with lenders charging arrangement fees of between 2%-8% with interest rates of up to 18%. "Some loans are more like mezzanine structures," he added.
According to Bunker, printers aiming to invest at Ipex should begin preparing early in order to ensure that they have the finance to invest.
"A clear business plan for the investment is a good idea. Forecasts showing the impact of the investment will be needed. Be prepared to be asked for deposits and collateral security to support the investment," said Bunker.
Ipex 2010 will take place between 18-25 May at Birmingham's NEC.
