Funding that makes a difference
The company had identified a gap in the market that nobody was fulfilling in the UK. Due to minimum order quantities from wholesale suppliers of digitally printed cans (350,000), smaller businesses were missing out. Consequently, they were looking to invest in a new machine that would bridge the supply gap and provide bespoke digitally printed cans for the smaller SMEs across the country, including craft breweries, gravy producers and coffee manufacturers, to help them get their products to market and grow their businesses.
From research at a variety of international trade shows, Oasthouse sourced the machine that would provide the solution they were looking for (and would be the first of its kind in the UK). However, when it came to sourcing funding, when they went to their bank, the bank said no. They went to other funding outlets, who also said no.
Through talking to their broker Ian Micklewright from Shiremark Leasing and Consultants, they were introduced to Praetura Asset Finance (PAF).
Praetura made a difference
The first ‘different’ thing that Praetura did was to take the time to understand more. PAF’s Commercial Director, Ric Simmons, and Credit Director, Mike Dalzell, travelled to Rotherham to meet with the business owners: Karl and Sam Morris, to learn more about the company, their ethos, plans and aspirations.
Karl Morris, Managing Director at Oasthouse Engineering commented “Eventually we were put in touch with Praetura, and honestly, it was the first sensible conversation we had, and they’ve backed us all the way. This new machine will give Oasthouse longevity in the market, with digitally printed cans being fully recyclable, this gives the supplier sustainability”.
The next part of making a difference was Praetura working with Oasthouse to shape the deal to fit with their specific needs. This included staged payments to the supplier in Germany and using property as additional security to bridge the gap between the purchase price and valuation figure, due to the specialised nature of the equipment.
Ric Simmons, Commercial Director at Praetura Asset Finance elaborated “Taking the time to meet Karl and Sam, to understand their business, hear their enthusiasm and their ambition made a real difference. Other funders maybe hadn’t understood the opportunity and were trying to underwrite based on past serviceability, but we looked at how the future of the business will service the debt, rather than judging on past performance.
Building relationships is important to us at Praetura Asset Finance and the whole of the Praetura Group. We don’t deal in transactions, we deal in providing support, in helping businesses through the different situations and challenges they face. We look forward to the relationship progressing with the team at Oasthouse and that support continuing”.
£1.7 million asset finance funding solution
The new Hinterkopf D240.2 printing machine has now been installed in Oasthouse’s warehouse in Rotherham and production has begun, thanks to Praetura Asset Finance arranging funding totalling £1.7 million through a hire purchase facility over a 60 month term. Oasthouse now have the ability to service runs printing one design on thousands of cans, or thousands of cans each with individual designs. A growing SME helping other SMEs to grow.
Making a difference matters to SMEs
Praetura believe in relationship-led lending, which puts the needs of the business first, offering more than money by taking the time to listen and understand and structure deals based on that knowledge, to make a real difference.
Take a look at our video to find out more: Oasthouse and Praetura Case Study Video.
