Marketing, Printing and Packaging Funding

Invoice Finance for Marketing, Printing and Packaging Businesses

Invoice finance helps eligible UK marketing, printing and packaging businesses release working capital from unpaid customer invoices. Go-Factor arranges suitable funding for production costs, materials, payroll, new contracts and continued business growth.

A printer or packaging company may need to buy paper, card, ink and other materials before production begins. Meanwhile, employees, specialist suppliers and delivery costs must often be paid before the customer settles the final invoice.

Marketing agencies face a similar problem. Staff, freelancers, media costs and campaign expenses can arise throughout a project, while customers may pay 30, 60 or even 90 days after invoicing.

What Is Invoice Finance for Printing and Packaging Businesses?

Invoice finance is a working-capital facility linked to eligible business-to-business invoices. Once goods or services have been supplied and invoiced, a provider may release an agreed percentage before the customer’s normal payment date.

When the customer pays, the remaining eligible balance is released after the provider’s agreed fees, reserves and adjustments.

Why Does the Sector Experience Cash-Flow Pressure?

Production costs normally arise before customer payments. Therefore, a profitable order can still place pressure on working capital while it moves through design, proofing, production, finishing and delivery.

Growth can increase the pressure. A larger contract may require more materials, additional shifts or outsourced work before the extra income reaches the bank account.

Paper, Card and Ink

Purchase materials needed for a print run or packaging order before the customer reaches its payment date.

Payroll and Freelancers

Improve working capital for production employees, designers, campaign teams and specialist contractors.

Outsourced Production

Meet the cost of finishing, specialist printing, fulfilment or other work completed by external suppliers.

New Customer Contracts

Fund the higher operating costs created by a valuable new customer or larger production order.

Seasonal Demand

Prepare for retail campaigns, Christmas packaging, product launches and other periods of increased demand.

Slow Customer Payments

Release cash from eligible invoices when customers operate on extended 30, 60 or 90-day terms.

How Does Invoice Finance Work?

  1. The order is completed. Printed materials, packaging products or agreed marketing services are supplied to the customer.
  2. The customer is invoiced. The invoice records the completed sale and agreed payment terms.
  3. The invoice is submitted. The funder may check the invoice, customer and supporting evidence.
  4. Working capital is released. Subject to approval, an agreed percentage becomes available.
  5. The business reinvests the funds. Available cash can support payroll, suppliers, production and the next customer order.
  6. The customer pays. Afterwards, the remaining eligible balance is released following the agreed fees, reserves and adjustments.

Which Businesses May Be Suitable?

Invoice finance may suit businesses supplying completed goods or services to other companies on credit terms. The funder will consider the customer, invoice and evidence that the sale has been completed.

  • Commercial printers and digital print companies
  • Packaging manufacturers and packaging suppliers
  • Label and flexible packaging producers
  • Direct-mail and fulfilment businesses
  • Signage and large-format printing companies
  • Marketing and advertising agencies
  • Creative production and design businesses
  • Promotional merchandise suppliers
  • Exhibition and display businesses
  • Print management and outsourced production companies

Can Invoice Finance Fund Work Before It Is Completed?

Conventional invoice finance normally requires an eligible invoice for goods or services already supplied. Therefore, it does not usually fund a quotation, an early design concept or production that has not yet been delivered.

Long marketing projects may use agreed milestones. However, the funder will need to confirm that each invoiced stage is complete, accepted and payable under the customer contract.

Can a New-Start Printing or Marketing Business Obtain Funding?

Yes, some invoice finance providers consider new-start businesses. Limited trading history does not always prevent funding because the funder also considers the customers, invoices and experience behind the new company.

A new business may have secured its first large print run, packaging contract or marketing client but lack the cash needed to support production and payroll. A friendly conversation with Go-Factor can help identify whether invoice finance or another funding option may be worth exploring.

Go-Factor Insight: Growth Can Use Cash Before It Creates Cash

A larger printing or packaging order can look highly profitable. However, paper, card, ink, labour and outsourced production may all need paying before the customer settles the final invoice.

Therefore, the challenge is not always a lack of orders. It is having enough working capital to accept and deliver them without placing the rest of the business under pressure.

Invoice finance can help turn completed sales into usable working capital so the business is ready for the next order.

Helen Boylett-Smith, Founder of Go-Factor

Factoring or Invoice Discounting?

Factoring normally includes support with customer collections. Therefore, it can suit a new or growing business without a large credit-control team.

Invoice discounting usually allows the business to retain control of collections and customer relationships. Consequently, it may suit an established company with reliable reporting and an experienced finance team.

Where funding is only needed occasionally, single invoice or selective invoice finance may also be considered.

Can Go-Factor Improve an Existing Facility?

Yes. An existing facility may no longer provide enough funding for larger contracts or seasonal demand. Customer limits, service levels, fees or contract terms may also stop the facility working as well as it once did.

Tell Go-Factor what is not working. After a short fact-find conversation, we can speak to suitable alternative funders, seek competitive offers and make an introduction where another facility may provide a better fit.

What Other Funding May Be Suitable?

Invoice finance supports eligible completed sales. However, a printing or packaging business may also need finance before it can raise an invoice.

Asset Finance

Finance suitable printing presses, finishing machinery, production equipment or commercial vehicles.

Trade Finance

Support qualifying supplier or material costs where goods must be purchased before the customer sale is completed.

Single Invoice Finance

Fund one eligible invoice when the requirement is occasional rather than part of an ongoing facility.

Flexible Working Capital

Consider another short-term facility when the cash requirement is not linked to a completed customer invoice.

How Go-Factor Helps

  1. We have a short, friendly conversation. Go-Factor learns about the business, customers, current facility and funding requirement.
  2. We speak to suitable funders. Based on that conversation, Go-Factor approaches providers that understand the requirement.
  3. We seek competitive offers. Where possible, Go-Factor helps the business consider suitable funding options and their main terms.
  4. We make the introduction. The selected funder explains what information it needs and takes the application forward.

Why Work With Go-Factor?

Finding suitable funding should begin with an easy conversation. Go-Factor takes time to understand whether the business is new, growing quickly or looking to improve an existing facility.

We then speak to suitable funders and make the introduction. Go-Factor remains available to support the conversation and help move the funding towards completion.

Go-Factor is an independent UK commercial finance broker, an NACFB member and the 2023 NACFB Intermediary Excellence Broker of the Year. Helen Boylett-Smith brings more than 30 years of commercial finance experience to the business.

Frequently Asked Questions

Can printing businesses use invoice finance?

Yes. Eligible invoices for completed print or packaging orders may be funded before the customer reaches its normal payment date.

Can marketing agencies use invoice finance?

Potentially. The funder will consider the customer contract, invoicing method and whether the invoiced service or project stage has been completed.

Can a new-start business obtain invoice finance?

Some providers consider new starts, particularly where the directors have relevant experience and the company will invoice suitable business customers.

Can I fund only one large invoice?

Single invoice or spot finance may be available for an eligible completed invoice when ongoing funding is not required.

Can Go-Factor review my existing facility?

Yes. Tell Go-Factor what is not working, and we can speak to suitable alternative funders and make an introduction where appropriate.

Need to Fund Materials, Payroll or Your Next Customer Order?

Have a short, friendly conversation with Go-Factor about your business, customers and funding requirement. Whether you are a new start, a growing company or reviewing an existing facility, we can speak to suitable funders and seek competitive options.

Talk to Go-Factor About Your Funding

All facilities are subject to application, invoice eligibility, funder assessment, approval and agreed terms. Funding is not guaranteed.