47 www.signlink.co.uk Issue 263 - February | March 2026 operational realities allows funding to be structured in a way that genuinely supports progress rather than creating unnecessary pressure. Avoiding Common Pitfalls and Misconceptions Despite the range of options available, misconceptions around finance remain widespread within the industry. One of the most common pitfalls, according to Compass, is an overemphasis on headline interest rates. While cost is important, the cheapest option is not always the best fit. Repayment structures, flexibility, and alignment with cash flow can be just as critical, particularly in an industry where workloads and revenues can fluctuate seasonally. Close Brothers frequently encounters outdated assumptions about how asset finance works. Many businesses still believe funding is limited to rigid structures, such as fixed deposits and standard five-year terms. In reality, modern finance solutions can be highly bespoke, offering features such as seasonal payments or tailored repayment profiles that better reflect trading patterns. Nelson says: “A frequent misconception is that finance is only for big-ticket equipment purchases. In reality, it can cover a wide range of needs, from improving cash flow and monthly headroom to software and workflow upgrades, or energy-efficient projects like solar panels or LED lighting.” According to Nelson, another hurdle is the belief that lenders only look at the balance sheet, stating: “At Compass, we take a much broader view, considering the story behind the numbers and the strategic value of the funding requirement.” SPF highlights another area of confusion: the way interest is calculated and presented. Quoted rates can be misleading, and comparing percentages alone does not always provide a true picture of cost. Translating finance into pounds and pence is often the most effective way to ensure clarity and avoid surprises further down the line. Naidu explains: “The worst misconception I come across is that all interest rates are the same. There are various ways for lenders to charge for their finance, including different ways that interest can be quantified. Someone quoting 4% might not be cheaper than another quoting 7%. Working in pounds and pence is typically the best way to avoid having a shock when it comes to finance documents. Being able to translate costs can be a minefield but SPF work with these challenges on a daily basis and are keen to ensure the clarity and understanding of the products offered to our clients.” Building Long-Term Partnerships for Sustainable Growth Perhaps the most significant shift in recent years has been the evolution of the relationship between finance providers and their clients. Rather than acting as transactional suppliers, many now see themselves as long-term partners invested in the success of the businesses they support. Compass encourages printers and sign-makers to involve finance providers early in their decision-making process. By sharing plans, challenges, and ambitions, businesses can benefit from more informed advice and better-structured funding solutions. SPF similarly stresses the importance of transparency and proactive communication, particularly when it comes to potential cash flow issues or past credit challenges. Short timescales and incomplete information, Naidu warns, often result in higher costs and fewer options. Early engagement allows advisers to navigate the market more effectively, identify suitable lenders, and reduce uncertainty. There is no stigma in asking for help, particularly in an industry where cash flow pressures are common. When it comes to borrowing, Philbrick adds: “It’s important borrowers ask themselves what they truly want to achieve rather than just what they know is available out there. They should see the assets they currently have as a vehicle for raising capital and helping fund ventures. Could a new piece of equipment help win new business or grow current offering to existing customers?” As the print and sign-making sectors continue to evolve, finance will remain a critical enabler of change. Sustainability, efficiency, and resilience are likely to dominate investment decisions, and funding will play a key role in helping businesses adapt. Those that view finance as a strategic tool, supported by trusted partners who understand the industry, will be best placed to remain competitive and confident in the years ahead. FINANCE AND FUNDING | DAVID OSGAR The British Business Bank works with finance providers to supply small businesses with the solutions they need to grow. Governmentbacked programmes include start up loans, the Growth Guarantee Scheme (GGS), and the Community Enable Funding Programme Factoid We’re assisting customers who don’t want to hold too much inventory by funding assets that enable just-in-time production ◄Tom Naidu, commercial finance adviser at SPF Private Clients ▲Jamie Nelson, director at Compass Business Finance
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