Skip to main content

Why should printers consider financing?

It’s a simple question – ‘why should printers consider financing’ – but is it a simple answer? In this piece we focus on this and other questions printers may have…

Like most expensive capital purchases, the return on that expenditure can take place over a lifetime. Financing enables the business, within reason, to match the profit generated from the purchase with the monthly outgoings, leaving cash flow intact.

That is why affordability is so important - the business can make the capital purchase choice taking into account future productivity and asset depreciation, and not simply on overall cost.

In addition, there can be tax benefits enabling companies to take advantage of capital allowances and corporation tax benefits, because the interest element of the payment can be tax deductible.

From a product perspective, financing and re-financing are simple ways of spreading a large expense over a term, freeing up cash to fund the trading cycle. For example, a printer may wish to spend a significant sum on machinery and a new plant. We can facilitate this using hire purchase or lease facilities with flexible terms.

Refinance is where a business owner utilises residual machinery values as security for a new finance agreement. This can be a means of financial house-keeping by, for instance, merging numerous agreements into a single repayment. Refinancing can also be a means of raising a cash lump sum, which is proving to be an excellent solution for many of our customers who are looking to mitigate supply chain issues.

Other reasons to consider financing include:

  • Preserving cash flow
  • Matching outgoings with benefits speeds up return on investment
     

How can printers access this financing?

Traditionally, business use their banks; however, that is not always the best way for companies to access the tailored funds that they require.

Close Brothers Asset Finance have a national network of specialist print and packaging relationship managers, and the benefit of working with us is our understanding of the assets, our empathy with the various difficulties that running a business can encounter, plus our long-standing commitment to the print and packaging sectors.

All our contact details are on our website, including our phone number. Anyone wishing to discuss finance can talk through their ideas - we can tailor a solution to suit almost any circumstance.

What sort of things should printers look for or consider when it comes to financing?

Number one is flexibility. In times of economic uncertainty, it is important to have a funder who understands your business and your industry and will work with you through all economic cycles. For example, we offer terms appropriate to the asset’s life, and we can reduce finance payments elsewhere to mitigate an increase in monthly overheads. We can also offer equity release to fund stock, including paper.

We know that rate is always a factor; however, a bespoke approach generally offers a finance outcome that is most appropriate. At Close Brothers Asset Finance every proposal is handled personally, every customer is treated as an individual and we pride ourselves on providing the best result possible for customers.

We also pride ourselves on supporting our customers through the whole life of the agreement. Our customers are our best advert and the amount of repeat business we achieve is testament to our continued focus on our customers’ requirements.

What help and the financing options are on offer?

Each of our industry teams have a local underwriting facility, meaning we can offer fast, tailored underwriting decisions to keep your business moving.

We offer funding on new and used printing, packaging, labelling and ancillary equipment, as well as having an excellent track record of helping businesses looking to merge, acquire or restructure.

We will come and meet you at your premises, spend time learning about your business, understand what your requirements are and together with you as a business, create a proposal that is affordable and in line with your business expectations and capital purchase.