Printers
Do you own a printing company? Is waiting for your invoices to be paid slowing your work down? Here’s how invoice finance could be the answer…
Contents
- How can invoice finance help printing companies?
- How does it work?
- A real-world example
- What to do next
Benefits of Invoice Finance for Printing Companies
It is the same scenario you see time and time again – you have provided goods or services, sent out your invoice and then you may need to wait 90-120+ days to receive those funds. Your growth is halted; if you had the working capital, you could purchase more printing supplies and be able to take on and complete more orders.
This is where an invoice finance facility could help. Instead of waiting for and chasing your debtors to pay, you could receive up to 70% of your invoice value that same day. So, how does it work?
Step-by-step guide to invoice finance
- Send your invoices
Firstly, you send your invoice to your customer, and another copy to your chosen lender.
- Receive up to 70% of the invoice value
Depending on the terms agreed, you will receive up to 70% of the upfront invoice value on the same day as when you issued the invoice.
- Your customer pays their invoice
Your customer pays their invoice within the agreed terms of 30, 60 or 90 days.
- You receive the remaining 30%
Once your customer has paid their invoice, you will receive the remaining 30% of the invoice, minus the lender’s fee.
A made-up example: Powerful Print Ltd
Powerful Print Ltd have completed an order for a company and send their customer an invoice of £10,000. They expect the invoice to be paid after 90 days from the end of the month. In the meantime, Powerful Print Ltd receive a phone call requesting a £15,000 order to be completed and delivered in the following week. This is great news to be receiving more work, however, at the time of the order, Powerful Print Ltd do not have enough supplies to be able to fulfil the quantity requested.
Fortunately, Powerful Print Ltd have an Invoice Finance facility. They send a copy of the invoice to their lender and receive £7,000 that same day. They can now purchase the ink, paper, and other supplies they need to complete their new order. After 90 days, the lender receives the invoice payment and sends Powerful Print Ltd the remaining £3,000, minus their fee.
Having the Invoice Finance facility has meant that Powerful Print Ltd have been able to grow their business incredibly fast compared to if they were having to wait to receive funds from their debtor.
How do I get an Invoice Finance facility?
This is where Contact Business Finance comes in! We have a wealth of knowledge in the world of Invoice Finance and can put you in touch with the most suitable lender. In a free-of-charge service, we will compare the market for you to find what would be best for you and your business.
And it’s not just Invoice Finance we can help with – we can look at business loans, asset finance, trading finance and more.
