Invoice Finance for Printing and Publishing Companies
Even with the rise of digital formats such as ebooks and online subscriptions to newspapers, the publishing industry as a whole is still thriving, so why is funding so tricky to come by? At the moment, the industry is worth £4.8billion, and growing yet financing from traditional routes such as bank loans is on the decline.
However, if you have an idea where to look for them, there are plenty of alternative funding solutions out there to help you with your publishing and/or printing business – including tailored invoice financing agreements.
Financial challenges for printers and publishers
High cost equipment
Whether it’s purchasing machines for a brand new business or repairing ageing equipment, getting your hands on assets could set you back by a significant amount and disrupt your cash flow.
Premises
Even if you have the equipment, you need somewhere to house it – and somewhere to host the various teams whose work goes into creating your published products. Then there’s storage for the products and even specialist studios for design. Rent for the type of location needed to keep large printing equipment can be high, but you could also look into a commercial mortgage if you have the means. This can decrease monthly outgoings and even provide you with a valuable asset to add to your portfolio.
Large print runs
You may encounter times where a bigger, higher quality run of a magazine or book is required and these can be costly to finance as they are a huge investment, of time as well as money. There may be tighter deadlines to work to as well, which will increase costs if the work requires a rush put on it. A business loan could be a quick and viable way to gain access to a large sum of money required to fund such a project, but invoice finance could also help if unpaid bills are causing some or all of your cash flow problems.
Tax demands
Large quarterly tax bills are inevitable, but even when you know they’re coming they can still disrupt your books and cause some financial difficulties.
Late payments
According to the British Printing Industries Federation (BPIF), late payments is a growing concern in the printing industry. In fact, in 2017, the number of printers with these concerns rose from 16% to 32% in just one quarter. Again, finding a suitable invoice financing agreement for your printing or publishing business could go some way to freeing up the funds that your firm relies on.
Get in touch
As the UK’s largest invoice finance broker, Touch can help you to keep your business running smoothly despite the potential for delayed payment from customers by matching you with the most appropriate providers of invoice finance for your needs. Contact us today to learn more.
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