Printers report slight improvement in the availability of finance

Printers have reported some improvement in the availability of finance as lending conditions eased slightly at the start of the summer.

David Nicholas, managing director at trade wide-format printer Fosco Hayes & Hurdley, said he had been offered full help and funding from the firm's bank, Lloyds TSB.

The Birmingham-based printer recently doubled its factory size and invested in a HP Scitex FB7500 printer.

Nicholas said: "We can borrow from our banks because we have a healthy relationship from them, but I can see how some companies that have problems may struggle to get lending."

His comments follow a report earlier this week by the British Bankers' Association (BBA), which revealed that new term loans to small firms increased by £75m between May and June 2010.

Barry Pearson, managing director of Doncaster-based commercial printer Expert Print, claimed finance is available, but for the right deals.  

He cited the relevant ease with which he obtained finance for a Komori Spica 29, although he said that he did provide a 50% deposit.

He added: "Rates are good at the moment and the banks are forthcoming. If you have the money behind the machine, the risk is low, and so the banks will lend."

However, according to equipment manufacturers accessing finance is still a problem for many printers.

Christian Knapp, managing director for KBA UK, said: "I am absolutely appalled at many of the financial institutions and their reluctance to lend to an industry that employs so many and contributes so much to the UK economy.

"Getting finance is near impossible at the moment and that will have to change if growth in this industry is to return any time soon."

Wayne Barlow, director of professional print at Canon UK, added that, like many companies, it too has found that funding often proves to be non-existent.

He said: "Banks and the government are saying that lending to smaller businesses is increasing but the SMEs are often not seeing it."

The availability of bank lending in the SME sector has seen no further deterioration over the past year, according to BPIF research.