Choosing the Right Finance and Funding For You

Over the past few years finance and funding have been crucially important to small and medium sized businesses as the market has turned more competitive, customer demands have changed, and the world has thrown several obstacles everybody’s way.

Recently many businesses have restructured or changed management as older generations have passed on the baton, or some companies simply have struggled to adapt to changes in the marketplace.
Here we highlight advice and insight into some of the financial and funding resources available to print businesses which can help secure equipment, premises, and loans in order for businesses to offer the best possible products and services to their clients.

Understanding the Market

Key themes in print over the past few years have been diversification and automation, two things that can be brought about by investment in machinery and technology.

Investment in the right tools can mean your business can solve problems with more output and offer better quality/more diverse products in order to increase profitability.

A company often sees this transition is Compass Business Finance, an independent finance company established in 2005. The business specialises in providing what it calls flexible and competitive funding solutions tailored to the needs of businesses in print and packaging.

When using financial services, Jamie Nelson, director of Compass, says: “Print businesses should ensure they have a strong business proposition and choose a lender which understands the printing sector and SME lifecycles. It's essential to find a finance provider which can support the business from inception through growth, acting as a partner in the journey. The goal is growth, and your finance provider should understand your customers' value and your business's nuances, especially for larger projects or commitments.”

Nelson also emphasises: “Our approach is relational rather than transactional, meaning we focus on building long-term relationships with our customers to support their growth and success.”
Compass has acknowledged the growth in technology and artificial intelligence (AI) as assets to printers who can now improve workflows, improve efficiency, and enhance security.

Compass also points to the increased popularity of sustainable solutions as a way that printers are expanding and helping the way they operate. Sustainable initiatives can help to only save on costs, but also improve branding, perception, and of course, the environment.

When it comes to the challenges printers are experiencing, Nelson comments: “Rising operational costs are placing an increasing strain on printers. Margins are being squeezed, and printers are having to continually find ways of increasing the value of their products and services to their customers, whilst also finding efficiencies and creating value through new technologies.”

Independent lenders and challenger banks are more flexible, focusing on understanding business needs and growth potential

With this in mind, many companies have adapted the way they operate or looked at new technology to give them better products and remain competitive, or a lead in a set field.

Nelson adds: “Investing in new technology is crucial for printers looking to stay competitive and drive growth, particularly when products and technologies are evolving so quickly. There are some fantastic events this year to showcase the most recent developments, such as Hunkeler Innovationdays and FESPA Global Print Expo, which we’re really looking forward to attending with our customers.”

When it comes to navigating the hurdles of funding, Nelson talks about the tightening of lending criteria by high street banks, which has led to the growth of asset finance and asset-based lending solutions.
“High street banks often require solid credit ratings, deposits, and personal guarantees. Fortunately, independent lenders and challenger banks are more flexible, focusing on understanding business needs and growth potential.

“Additionally, lenders accredited by the British Business Bank to provide funding supported by the Growth Guarantee Scheme (GGS), such as Compass, are in place to support lending in scenarios where additional support is required to get an investment off the ground. GGS can enable lenders to provide lower interest rates than they otherwise would have done in higher risk scenarios.”

When it comes to navigating the pitfalls of asset financing and lending, Nelson advises decision makers to stay informed about market trends and to continuously review financial strategies. “Engaging with a finance provider that understands your industry and offers personalised support can make a significant difference in achieving long-term success,” says Nelson.

Getting the Right Advice

When it comes to subjects of refinancing and restructuring, the business world can be a minefield for options and advice, meaning that seeking the right professionals for your company can be crucial.
Graeme Lipman, director at BTG Advisory, a boutique practice advice under the Begbies Traynor Group, says that getting engaged with advisers as early as possible is key to accessing more options.

“My role is to advise and support companies with restructuring and refinance. I have a wide remit and assist companies of all sizes from £100k turnover to £100m plus. I help companies that can be stressed, and solid businesses that want to grow and expand. I also support smaller business outlets through Real Business Rescue,” says Lipman.

Lipman also advises being constantly aware of the current situation in order to act accordingly, adding: “It does no harm to talk to professionals, even if they say, ‘you are in good shape, but do keep monitoring the position and come back’. Do not leave anything to the eleventh hour as the first thing we look at is what oxygen we can inject into the business to keep it breathing, and then we work out the options from there.”

As supported previously by Compass and its relational approach, knowing the organisation you are working with has an understanding of your industry and business needs is crucial.

Similarly, Lipman helps companies through his own history in the print industry: “I worked within the printing and publishing sector for over 30 years. I ran my own group of companies that employed over 52 staff and generated a turnover of over £7m. I have considerable experience in finding the right positive solutions for refinancing and have a vast array of print financial contacts who understand and specialise in print to get the best rates and solutions.”

When it comes to investing in staff or equipment, Lipman emphasises the importance of realistic budgets. “The increase in capacity of staffing levels must rest on budgets and realistic forecasts to make sure that each new member brings a benefit and fits within each department’s requirements for future growth. Taking on new staff and equipment must rely on growth strategies with fixed timelines to be able to monitor the impact on both production capacity and costs. All must be accurate.”

Adding to his emphasis on growth, Lipman says that growth areas are incredibly important to monitor but to also be weary of growing too rapidly, over trading, and investing in staff and machinery for the short-term as opposed to the long-term.

Lipman concludes: “Make sure the financials support any change in the business and ensure working capital and cashflow forecasts match growth trends.”

Avoiding Mistakes

As mentioned by Lipman, a mistake often made by businesses is to not seek advice early enough. This sentiment is agreed by Close Brother Asset Finance, a company that has been providing funding to the UK’s print and packaging sector for over 30 years.

Paul Philbrick, managing director of Close Brothers’ print team, says that speaking with experts allows business owners to receive personal and specialist services so that funding providers can base decisions on the overall health and plans for a business.

Speaking about what Close Brothers provides, Philbrick says: “The human component is core to our business – every stage in the lending decision-making process involves a member of our team.”
Discussing what print businesses should consider when using financial services, 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?”
When it comes to business growth, Philbrick highlights the many options and considerations out there for companies including options they may not have considered, such as seasonal payments.

“We would recommend businesses contact us to see if there is a way we can help make the financing of their purchase more suited to their business's needs,” says Philbrick, who adds: “Every agreement is structured slightly differently and tailored to the requirements of every customer.

The human component is core to our business – every stage in the lending decision-making process involves a member of our team

“Looking ahead to the rest of 2025, we will continue to support firms through the cycle. While this may not sound exciting, it does provide reassurance to business owners that funding will still be available, and they will have access to a team of experts that speak their language and understand their business.”

As evident in Philbrick, Lipman, and Nelson’s comments, having early conversations with businesses and individuals who understand your business needs is incredibly important for any financial decision.
Although finance and funding may seem daunting, especially in today’s climate, with the right advice, insight, and timing, the positives could potentially far outweigh the negatives.