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There Will Be Money
October 22, 2008
Businesses around the country are living through the credit squeeze, affecting printing customers and printing and publishing operations alike. Measures addressing the issue at the Federal 
Reserve and among European and Asian banks will take awhile to filter through as capital availability to smaller businesses. But the concerns might reasonably generate some fears that capital investment financing will be unavailable at Graph Expo 2008.
Not so, say suppliers we've talked with, who can evaluate customers and underwrite financing through their own credit arms. Ordinarily, these loans are resold like mortgages, to a third party. But for the moment, at least, some suppliers can write the loans and hold the paper as they wait for third-party financing to loosen up.
Senior editor Lisa Cross suggests that we will likely see a great improvement in the competitive landscape when this is over. Too-easy credit terms that plagued the printing industry and contributed to excessive capacity, will now dissipate, she says. Left will be the real players, the well-managed firms that can survive without below-market financing.
One example of the velocity of the rapid changes finance for printing and small businesses in general is seen at Bank of America, which now handles banking needs for 50% of U.S. households. Since it acquired Merrill Lynch it expands its role in mid-market financing--and also is helping retool the printing industry. In today's paper, it proudly lists its provision of a $4.5 million line of credit and term loan to Creative Printing Services, $460 million senior secured credit facilities to Huron Consulting Group, which has been snapping up printers, and $69 million in credit facilities to Segerdahl Group.
CIT Group is another major industry source, funding a variety of suppliers (Agfa and EFI for example) as well as printing firm PBM Graphics through Edgeview Partners.
For breaking news on Graph Expo, visit graphicartsonline.com/graphexpo
Posted by Bill Esler on October 22, 2008 | Comments (0)
