2 min read
Equipment as the core asset in print finishing
A print finishing business — covering lamination, UV varnishing, foiling, die-cutting, creasing, perfect binding and case making — is built around its machinery. A commercial laminator, a foil blocking press or a die-cutting platen represents a material capital outlay, and the business's capacity, quality ceiling and production speed are all directly determined by its equipment suite.
Acquiring this equipment through asset finance — hire purchase or finance lease — allows a finishing company to invest in production capability without depleting working capital or relying on a personal director guarantee against current-account funds.
Machinery upgrade cycles and second-hand equipment
The used market for print finishing equipment is active, and many businesses acquire second-hand machinery from trade sales or European print-house disposals. Asset finance can cover used equipment as well as new; the lender will apply a different loan-to-value ratio depending on age, condition and residual marketability. An independent machinery valuation may be required.
Confirm the VAT position on used industrial equipment purchases with your accountant, as the margin scheme may apply to some transactions.
Working capital and the just-in-time production model
Print finishing is typically a downstream, time-critical process: the finishing company receives work from a printer, often with a short turnaround requirement, and must meet delivery commitments to keep the print supply chain moving. Substrate, board, adhesives and consumables are purchased at short notice and paid before the finished job is invoiced. A working capital revolving facility covers that short cycle without the company needing to hold excess cash reserves.
Facility expansion and production line investment
Adding a new production line — a second foiling press, a large-format laminator or an automated collating system — typically requires a combination of equipment finance for the machine and a shorter-term facility for installation, wiring, extraction and commissioning costs. These can often be structured as a single facility or as parallel facilities with a coordinated draw-down schedule.
Frequently asked questions
Can print finishing companies finance consumables as well as machinery?
Consumables — laminates, adhesives, foils — are typically funded through working capital rather than asset finance, as they have no residual value. A revolving credit facility is more appropriate for this purpose.
What security is typically required for machinery finance in this sector?
In most cases the equipment itself serves as primary security under a hire-purchase or finance lease agreement. Unsecured lending or additional property security may be required for older equipment with limited residual value.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.