Never a better time to invest
Never before have so many businesses benefitted from so much government-backed money
When it comes to finance, the UK digital wide-format industry has never had so much government support. From now, the newly launched Recovery Loan Scheme (RLS) coupled with increased super-deduction corporation tax rebates, have made it possible for many businesses to invest in cutting edge equipment, which in the past would have been unobtainable.
The Recovery Loan Scheme is a follow-on from the Coronavirus Business Interruption Loan Scheme (CBILS), and widens the eligibility criteria.
Unlike CBILS, it lifts restrictions on company turnover, and removes the 3-year trading stipulation. Available funding is between £1,000 to £10m for single companies, while lending for groups increases from £10m to £30m. No personal guarantees are needed for finance up to £250,000, and 80% of any loan take-up is guaranteed by the government.
“RLS provides welcome impetus to an industry that has not only made the necessary COVID-related adaptations, but which understands that in order to ensure future productivity and enhanced efficiency it needs to take-stock and invest. Increasingly supply chains are being driven by e-commerce, requiring greater production agility and automation,” said RobIn East, CMYUK’s Group Sales and Marketing Director.
“Printers need to be fully prepared to service new business models, and demands from non-traditional market sectors requiring shorter-runs, personalisation and fastest turnaround times. The availability of this finance scheme will be of immense benefit to all sized companies, but in particularly the mid-range volume sector that in the past would have struggled to purchase their dream equipment, as it would have meant committing to the liability of a personal guarantee. RLS provides everyone with a shot to be a contender in the shifting business landscape,” he added.
Customers also have the ability to offset their capital equipment purchases against the new increased super-deduction corporation tax rebates. For example, if you purchase a Kongsberg X24 Edge at £89,995, you can get a massive £22, 229 reduction in your company corporation tax bill.
The calculation is as follows:
Kongsberg X24 @ £89, 995 x 130% (capital expenditure) = £116, 9983.50 Multiply this by 19% (the current rate of corporation tax) = £22, 228.77 rebate bringing the machine cost down to £67, 766.24 after the tax allowance.
“These new business boosting schemes are unprecedented,” continued East. “There has never been a better time to invest in technology, upgrade production efficiency and future-proof businesses. CMYUK is here to support business owners and their accountants with finance purchasing tools and accurate TCO’s. This government financial scaffolding is very significant and advantageous to the wide format printing, signage and packaging industry. We welcome existing and potential customers to contact us for further information or guidance through the process.”
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