Northern Ireland aerospace tooling specialist Datum Tool Design has secured £1.6m (€1.87m) in asset finance from Paragon Bank to fund the purchase of a high-value 5-axis CNC machining centre, in a deal that demonstrates how structured finance can underpin capital-intensive investment for specialist manufacturing SMEs, as reported by Product Engineering Solutions. The transaction carries direct relevance for finance professionals advising on equipment funding, balance sheet treatment and long-term growth financing.

Product Engineering Solutions reported that the funding supported the acquisition of a Promac Sharav HGVT machine, a 22-metre, 5-axis machining centre understood to be the largest of its type in Ireland. Founded in 1996 and based in Lisburn, Datum Tool Design designs and manufactures high-precision aerospace tooling for major aircraft programmes, working with customers including Airbus, Bombardier and BAE Systems.

The investment forms part of a wider expansion programme at Datum, which has also secured grant support from the Aerospace Technology Institute linked to a broader capital investment plan, including a new facility to house the machine and support future growth.

Joe Blanthorn, business development manager at Paragon Bank's SME Lending division, said the investment gives Datum the ability to take on larger and more complex projects while bringing more capability in-house, and added: "It also shows the important role asset finance can play in helping established SMEs access the high-value equipment they need to improve productivity, compete for new work and support long-term growth."

Michael Maguire, director at Datum Tool Design, said the new machining centre represents a significant investment in the next stage of the company's development and noted that Paragon and Paul Close Finance understood the importance of the project. He added that the machine gives the business greater capacity, more flexibility and the ability to manufacture larger and more complex tooling in-house.

Paul Close, director at Paul Close Finance, which introduced the deal to Paragon, said it was important to work with a lender that understood both the value of the equipment and the wider growth opportunity. He described Paragon's approach as practical and supportive throughout the process.

The deal was led on behalf of Paragon Bank by Blanthorn, with support from head of vendor Terry Lloyd. Paragon provides asset finance to UK SMEs across a wide range of sectors, supporting investment in business-critical equipment, vehicles and machinery.

View the full report on Datum Tool Design's asset finance deal with Paragon Bank.