Financing Growth: Close Brothers Asset Finance and Totally Branded's Strategic Investment

In the ever-evolving landscape of the printing industry, strategic investments can often be the difference between stagnation and exponential growth. Close Brothers Asset Finance's recent funding of a second Inkcups X5® flatbed printer for Totally Branded exemplifies this dynamic. The move, aimed at meeting rising demand for direct-to-object printing, underscores a broader trend in the industry: the shift from traditional to digital printing solutions.



The acquisition of the second Inkcups X5® printer by Totally Branded is a testament to the company's strategic foresight. The new machine replaces five existing printers, streamlining operations and enhancing production efficiency. This consolidation is not just about reducing operational complexity; it's about positioning the company to capitalize on the growing demand for high-quality, customizable printing solutions. The global flatbed printer market, valued at USD 2.5 billion in 2024, is projected to reach USD 4.8 billion by 2032, growing at a CAGR of 7.5%. This growth is driven by the increasing need for cost-effective, high-resolution printing solutions across various industries, including signage, packaging, and textiles.

The funding model provided by Close Brothers Asset Finance is particularly noteworthy. The low deposit requirement allowed Totally Branded to ring-fence cash for aggressive stock purchases, critical for sustaining growth. Additionally, the seasonal repayment structure aligns with the company's income cycles, ensuring liquidity during peak operational periods. This financial strategy is a double-edged sword, however. While it provides immediate cash flow benefits, it also introduces risks associated with over-reliance on seasonal demand stability and contract performance.

The potential risks are not to be underestimated. The success of seasonal repayments hinges on consistent, predictable revenue spikes. If demand for promotional products declines due to economic downturns or shifts in consumer behavior, Totally Branded may face cash shortfalls during repayment periods. Moreover, the long-term debt burden could strain finances if growth slows, compounding the risks associated with rapid expansion.

Despite these challenges, the investment in the Inkcups X5® printer aligns with broader market trends. The shift from traditional to digital printing is driven by the need for cost and efficiency gains. Digital flatbed printing eliminates the need for screens and plates, reducing waste and setup time. This aligns with the growing trend of digitization in printing and the transition from conventional to digital printing techniques. The ability of flatbed printers to print on diverse materials, including metal, glass, acrylic, and wood, enhances their versatility and caters to the growing demand for personalized and customized printing.

The strategic investment by Totally Branded, backed by Close Brothers Asset Finance, is a microcosm of the broader trends reshaping the printing industry. It highlights the importance of technological advancement, cash flow management, and strategic planning in navigating the complexities of a rapidly evolving market. As the industry continues to grow, driven by the demand for high-quality, customizable printing solutions, companies like Totally Branded will need to remain agile and innovative to stay ahead of the curve. The success of this investment will serve as a litmus test for the company's ability to capitalize on the opportunities presented by the flatbed printer market, while also mitigating the risks associated with rapid growth and technological change.