The printing sector was probably one of the most hard-hit sectors by the 2008 financial crash as corporate Britain cut back on costs wherever it was feasibly possible.
Although the economic outlook in 2016 had been better, printers continue to see cut backs on advertising and marketing collateral, meaning the requirement for printing and the services printers offer has decreased.
Equally many companies now do simple design and print jobs such as stationery in-house, which has consequently left a large number of printers chasing a diminished number of jobs.
And with the perennial problem of evolving technology and the constant need to reinvest in expensive new equipment, it’s led to many printers going under over the past few years.
Problems for printing sector
Obtaining working capital is critical to success, but it has proven extremely difficult for many printers over the past few years to access the funding they need to flourish.
The sector is not particularly liked by many lenders who have been left with expensive presses to sell to repay their borrowings when the luckless printer has failed. In many cases the lender has then found that in a depressed market they do not fetch anywhere near their expected value, leading to shortfalls on their hire purchase loans.
It appears to have been customary for many years now that printers' customers expect 90 day payment terms, whilst the paper suppliers demand quick payment or they will turn off the tap.
This then causes the cashflow gap in the printing sector to be exaggerated, leading to many funders being reluctant to fund this extended period.
What can printers do?
Here at Skipton Business Finance, we have a thirteen year history of success dealing with businesses in the printing sector and helping them to improve their cashflow.
Whilst it has been seen as a last ditch option for failing businesses in the past, a good number of those that initially felt concerned about Invoice Finance have tried it and found it offered more flexibility than normal bank funding.
Consequentially many of our clients will recommend other businesses to us and benefit from our generous referral scheme!
How can invoice finance help printers?
- It generates more cash than an overdraft – usually twice as much!
- Less personal security is required
- It is based on sales and grows with the business - meaning you don’t have to keep going back to the bank asking for more!
- It is not based on historic balance sheet performance and therefore is suitable for businesses in a turnaround or highly geared
If you would like a no-obligation FREE quote, please get in touch by ringing us on 0800 0854150 (call 0330 1232437 if ringing from a mobile).
You can also email us at firstname.lastname@example.org.
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