will supposedly free up £200 billion for lending to businesses, may
do little to help finance the print industry, according to experts
quoted in industry journal Printweek this month.
insolvency expert Begbies Traynor Group, which found that the
number of print firms with “critical problems” increased 84 percent
during 2009.
Close Print Finance director David Bunker presented a lessor’s
viewpoint on the matter, saying that the previous bailout did
little to increase UK banks’ appetite for lending.
‘No matter how keen the government is for banks to lend, the
bank’s major shareholders retain a powerful vote,’ he said. Paul
Holohan of print industry advisers Richmond Capital Partners, was
similarly sceptical.
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‘Frankly, I am not overly optimistic,’ he said. ‘Bank lending
will depend on balance sheets, performance and the bank’s
assessment of the viability of each individual company requesting
business finance.’
He added, however, that asset finance lending cuts might be
beneficial to the future health of the industry.
‘I am pleased by the more responsible approach to lending
against fixed assets. One of the reasons the print industry is not
as strong as it used to be is ‘easy finance’, which created low
barriers to entry and spawned the overcapacity the industry now
has.’
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