Wolverhampton-based Luff Engineering, a sub-contract machine shop that predominantly machines cast iron parts but also aluminium, has purchased a new Grob G350 five-axis machining centre, which can be utilised to machine components from a wide variety of materials.

www.closeassetfinance.co.uk Close Brothers Asset Finance supported the purchase with a bespoke CBILS (Coronavirus Business Interruption Loan Scheme) hire purchase agreement.

The new machine was purchased as a replacement for an older machining centre, and to service new work being promised by existing customers. The production boost the new machine has provided has also enabled Luff to expand its customer base and attract new work.

Andrew Maude, area sales manager for Close Brothers Asset Finance’s engineering division, said: “Luff Engineering had an existing finance agreement with us with around nine months remaining and we contra-settled the existing agreement, rolling it into the new agreement, meaning the customer didn’t have to put a deposit down on the new machine, conserving its cash flow. The new finace arrangment meant Luff only had one monthly direct debit to pay rather than two.

“At the same time, we settled off an existing BBLS (Bounce Back Loan Scheme) loan he had taken at start of the pandemic, which made him eligible for CBILS.”

Luff Engineering Managing director Jason McDonnell said: “The previous machine was getting difficult to maintain and we needed to move on to something that could cope with our increased workload.

“We have been working with Close Brothers Asset Finance for some time now and we were confident they could structure a funding deal that would work for us, and I am delighted that they have been able to do just that.

“Industry knowledge is really important, which is where Close Brothers Asset Finance really stands out. They clearly understood what we wanted to do and worked out a deal that suited our needs.”