Finance Solutions For The Printing Industry

Finance Solutions for Flexographic Printers

Flexographic printing, along with digital printing, has been one of the success stories and key growth areas within the print industry in recent years, typically at the expense of the more cumbersome, less agile conventional offset printing presses.

But flexographic printing is not without its problems, not least the high capital cost of the equipment which can be in the region of £1m for the latest generation flexographic printer.

For many print companies, SMEs especially, such a sum is beyond their means as it would represent a substantial drain on their financial resources.

And yet the acquisition of, and access to, the latest state-of-the art, flexible and high production flexographic printer may well be the answer to fulfilling customer contracts, both existing and new, and guaranteeing a steady income stream for a number of years to come.

One solution to this problem is the use of asset finance to acquire the necessary hardware, but for many printers the question is ‘where do I to start’?

The team at Anglo Scottish includes a printing finance specialist who is an expert in identifying the most suitable finance packages for printers who want access to the latest technology but do not have the financial means to acquire them outright, and has also worked on the print side of the industry.

There are many businesses which would benefit from the high output, sophisticated printing that flexographic printers can deliver, but do not have the means to fund such assets themselves.

Conversely, many of the funders who could provide the necessary funding to help such businesses acquire the assets they require do not want to take the risk, especially with the high capital outlay involved.

To counter this, Anglo Scottish which has access to over 70 different funders throughout the UK , works with a panel of 15-16 funding specialists who are happy to provide finance for printing businesses of all sizes.

And it adopts a partnership approach with its printing customers to ensure that they have access to the best finance solutions for them at the most competitive rates.

Hire purchase is and remains the most popular funding method because of the still relatively high residual values that flexographic printers have at the end of the agreement. A typical finance agreement for a flexographic printer with an invoice price of £1m may be for five or seven years typically.

At the end of that agreement , the printer may still have a residual value of 20-30% and be capable of a good few years of high output production. The market for such printers is worldwide and they are typically supplied from Europe or further afield.

So for many print business, hire purchase is the ideal solution as, for a small sum at the end of the agreement, the title passes and they can own the printer outright. In the latter years of its use, when the finance repayments have been completed, it is at its most profitable for the printer, with no or very little outlay but with a steady revenue stream coming in.

Anglo Scottish also takes a partnership approach with its printing customers whose need for finance may extend far beyond the acquisition of the printer itself.

Other requirements may include ancillary machinery such as pre-press equipment, or transport to move the finished goods, new or larger premises.  It can provide a holistic finance support package for printing business that goes far beyond the provision of the press itself, which is quite different from many of the other asset finance specialists in this market who may not wish, or be able to go beyond funding the initial equipment.

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