Invoice Finance For The Printing Industry
Compare invoice finance online and have the leading lenders compete for your business. Get the best deal with ABC Finance.
Rated Excellent on Reviews.co.uk
What is invoice finance for printers?
Invoice finance for printers is a type of cashflow finance that allows you to release funds from your unpaid invoices.
If your business is B2B and operates on delayed payment terms of 30 days, 60 days or 90 days, invoice finance could allow you to receive payment within 24 hours of an invoice being raised.
It is a product designed to smooth cashflow and allow business owners to focus on running their business successfully without being held back by their bank balance.
How does it work?
Invoice finance works as follows:
- Credit control – Either your business or your funder (depending on the type of facility chosen) chases the invoice.
- Balance paid – Once the invoice is paid, you receive the balance, minus your agreed cost of finance.
- Invoice issued – You send an invoice to your customer and also pass on a copy to your invoice finance provider.
- Funds paid – Usually within 24 hours and up to 95% of the invoice amount.
Are there different types to consider?
Yes. The different types are:
- Invoice factoring – Invoice factoring allows you to release funds from your unpaid invoices and passes responsibility for managing the sales ledger to your funder. The funder handles all credit control and liaises directly with your customer to ensure prompt payment of any due invoices.
- Invoice discounting – Invoice discounting works as above, but allows you to handle your own credit control. You chase payment in-house, and your customer remains unaware of the facility.
- Selective invoice finance – Selective invoice finance allows you to fund either a single invoice or to pick and choose which invoices you would like advanced payment for.
What are the alternatives to invoice financing for businesses in the printing industry?
The alternatives to invoice financing for businesses in the printing industry are:
- Revolving credit – Revolving credit, either in the form of a standalone business revolving credit facility, business overdraft or business credit card, gives you an extra pot of money to dip into if your cash flow gets too tight.
- Secured finance – Secured finance can come in the form of a secured business loan, but another solution is the commercial mortgage. If you own your business premises, or wish to buy them, you could borrow money using a commercial mortgage and repay over anything up to 25 years, meaning you’ll have lower monthly repayments.
- Business loans – Business loans allow you to borrow a lump sum and repay it over a fixed term through regular monthly repayments. They can be either an unsecured business loan, which has no collateral and allows you to borrow up to £500,000, or a secured business loan, which gives the lender security over a property that you or your business owns.
- Asset finance – When funds are needed to purchase new equipment, machinery or vehicles for your business, asset finance could be the solution. It allows you to acquire the equipment that you need without having to pay the whole cost upfront.
What are the pros and cons of invoice finance for printers?
The key advantages are:
- Cashflow boost – Invoice financing boosts your cashflow by speeding up the time between work being completed and payment being received.
- Flexibility – It’s a flexible way to borrow that allows you to borrow more or less as your turnover increases or decreases.
- Ongoing support – It’s an ongoing facility that is designed to support your business over the long term.
- Save time and resources – The credit control support can save you time, money and resources.
The disadvantages to consider are:
- There is a cost – There are finance costs to consider, which will slightly reduce your profit margin.
- Credit control isn’t for everyone – Some businesses do not want to pass on the credit control function to their funder. If this sounds like you, consider a confidential invoice discounting facility instead of debt factoring.
Will I be eligible?
If your business operates on delayed payment terms of 30 days, 60 days or 90 days and your customers are other businesses, then yes, there is a good chance that you’ll be eligible.
As we work with the market’s leading providers, we can place your business with the most suitable lender upfront to ensure you have the best possible chance of success.
Our team support you through the entire application process to ensure things run quickly and smoothly.
If you’re unsure whether you would qualify, get in touch today, and our experienced team will be able to give you a strong idea of your eligibility in minutes.
What is the best way to secure invoice finance as a company in the print industry?
The best way to raise invoice finance for a business in the print industry is through the ABC Finance invoice finance comparison tool.
Our online platform allows you to compare offers from all the leading lenders in minutes, without the need to sit through multiple sales calls.
Instead, you simply input your business details and your requirements into the system (it only takes a few minutes).
Once input, the market’s leading lenders compete for your business, offering their most competitive terms in an effort to win your business.
Once you’ve found the perfect deal for you, simply click a button to take your application forward.
