Zeitgeist


Money Talks


KEN ARCHBOLD JOINED COMPASS BUSINESS FINANCE LAST AUTUMN AS HEAD OF CREDIT, COINCIDING WITH THE COMPANY’S AIM OF DOUBLING THE AMOUNT OF MONEY IT WOULD BE PUTTING INTO THE MARKET OVER THE NEXT THREE TO FIVE YEARS. SO HOW’S THAT GOING, AND HOW CAN IT BENEFIT YOU?


Ken Archbold, head of credit for Compass Business Finance, was one of three key hires in 2023, alongside, Rob Lee-Davey, as finance director and Jordan Pocock as a senior sales manager. Now, well settled into his new role, we asked him how he’s getting on, and how printers can get their hands on more money in 2024. “It’s been an exceptionally busy start to my time at Compass as visiting customers, learning more about their businesses and gaining an understanding of some of the challenges they face enables us to take a far more relational than transactional approach. It often appears easier for businesses to search for the best rates online when looking to finance a new investment or project, however the reality is that you can often achieve a far better outcome by working with a finance partner who understands you and your overall aspirations.


“In a year when some institutions have taken a more conservative approach to lending, we have expanded and lent more money than in any previous year, utilising both our own funds and those of our funding partners. We intend to keep growing the amount of funding we’re putting into the market, and we’re evolving with our customers’ needs - where traditional sources can be more reluctant to lend, we can step in to enable continued investment for printers.


“Compass were named the ‘Top Customer Centric Funder of the Year’ at the 2023 LeasingWorld Awards. Significant investments have been made into our systems and processes, but most of all, our people. Yes, we can provide the products our customers need at competitive prices, but service is key to building long-lasting and prosperous relationships. “During the past 12 months, we’ve seen a lot more


investment decisions being driven by potential energy savings and workflow efficiencies. Sustainability is high on the agenda for many businesses, especially where it has the ability to help them win more contracts. Across the sector the majority of investment we’ve seen has been in sustainable large- format and packaging applications. “In terms of funding options, the popularity of Asset Based Lending (ABL) - taking a holistic view of the overall assets of a business - is growing significantly. It offers substantial benefits to customers, helping to provide them with the maximum amount of flexibility,


26 | February/March 2024


WE EXPECT NEW SCHEMES SUPPORTING INVESTMENT TO BE INTRODUCED, PARTICULARLY IN RELATION TO INCREASING SUSTAINABILITY WITHIN THE MANUFACTURING PROCESS


whilst achieving lower rates. A key aspect of this for many businesses, is Invoice Financing (IF), where businesses either have an agreement in place that hasn’t been reviewed for a while, or it’s not something they’ve really looked at before. It’s worth considering. IF allows access for up to 95% of the value of invoiced work immediately, providing huge cashflow benefits, especially with the increasing pressure to provide longer payment terms. Refinancing is also continuing to be a popular option among printers who are looking to raise capital for new projects or improve cashflow, by lowering their monthly outgoings. “The Recovery Loan Scheme (RLS), is also helping us to support more printers, and provide lower rates where it wouldn’t have otherwise been possible. The scheme, run by the British Business Bank, helps securitise lending where the risk is seen as proportionally higher than lenders may like, so that additional funding can flow into the market. Whilst RLS is currently due to end on 30 June, it can support scheduled borrowing for a period after that date. We also expect new schemes supporting investment to be introduced, particularly in relation to increasing sustainability within the manufacturing process. “Tax incentives are also in place to support continued investment, and businesses have welcomed the government’s decision to make full expensing permanent, which offers 100% first-year relief to companies on qualifying new machinery investments. “Our goal is to be a trusted and knowledgeable


partner. Building strong relationships with the industry has proven key to our market offering and we’re committed to improving that every year. We believe in the importance of community, through organisations such as Fespa UK, and by bringing customers together where we see they could benefit each other, in some cases for M&A agreements.”


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