67 www.printmonthly.co.uk September / October 2024 - Issue 350 FINANCING AND FUNDING For print businesses looking to invest in new equipment and seeking funds to support growth plans, there are many options out there. Print Monthly looks at some of the financing cuurently available SPEND MONEY TO MAKE MONEY Money is often one of the primary stumbling blocks when it comes to new investment in the print industry. Print companies want to purchase new equipment, expand their workspace, or even add new vehicles to their delivery fleet. Unfortunately a lack of funds can stop them in their tracks. However, there are plenty of sensible and effective financing options available to those in our industry, each offering companies the funding they need to proceed with their plans, with realistic repayment options. Here, we speak with several specialists within this area to find out more about what is available to print companies to help them grow and expand their business without having to break the bank. Support Your Growth Strategy One of the stand-out names in funding support in the printing industry, Compass Business Finance, is well place to offer financial backing and advice to those looking to invest. Director Jamie Nelson says when planning for growth, finance can help bring forward projects whilst not impacting cash within the business, which is vitally important in a growing business. “There are likely to be several options for how this can be achieved,” Nelson says, adding: “Key factors in your decision-making process will be the cost, speed, flexibility, and quantum – how you’re going to raise the capital required to put your ideas into practice, and how quickly the investment you’re making will pay for itself. “Using external finance to support your growth strategy can help your business make more timely investments and have greater agility in responding to market conditions or opportunities.” Nelson says financing is a realistic option throughout the life of each printing business; from start-up loans, overdrafts and cashflow support, to finance for larger projects or investments such as purchasing new equipment, making improvements to buildings, or acquiring another company. When it comes to securing new funding, Nelson says it is worth looking at all options. He advises that the most direct route to accessing the finance you need may not always be the best one. On this, he says Compass has seen a significant rise in the popularity of assetbased lending (ABL), which he says provides a strong alternative to more traditional banking facilities, often underpinned by invoice finance facilities and term loans, they can also include vehicles, equipment, property, and in some cases inventory. “Over 35,000 UK businesses have now benefitted from this type of funding, and because of the way it’s securitised it’s often available at more favourable rates than any of its component parts,” he explains, continuing: “When considering a new project, it’s worth looking at your current agreements at the same time, as you may be able to bring everything together into an agreement that better suits your business.” Growth Guarantee Scheme While term loans and overdrafts are not currently as readily available as they once were, the number of alternative funding options from independent lenders and challenger banks are increasing to fill the gap, Nelson explains. “We recommend talking to finance providers such as ourselves to explore what’s ▲Compass Business Finance director Jamie Nelson [L] says finance can help bring projects forward One of the key reasons for considering insurance for a print business is to manage and contain these risks
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