Invoice finance for printing and packaging companies
Paper, ink and production time are paid for before many print customers settle. Invoice finance may release money from qualifying completed print and packaging orders while you wait for payment.
Positive Funding Limited is a finance broker. Funding is subject to provider assessment and agreed terms.
The presses move faster than customer accounts
A printer may be buying materials for a new run while the previous job is still on a customer’s ledger. Packaging work can add repeat orders and larger account balances to the same problem.
Funding a valid receivable can help recycle cash after delivery. It should be assessed alongside the cost of production and the margin on each job.
Support repeat production
Consider how receipts from completed jobs could contribute to the next material purchase.
Retain approval records
Proofs, specifications and delivery evidence help explain what the customer accepted.
Allow for large accounts
Check the funding limit before one packaging buyer builds a substantial balance.
How completed print orders can support funding
Connect the job to the bill
Provide the order, final specification and dispatch evidence behind the invoice. Separate unapproved extras or unfinished stages.
Request the agreed release
Once the provider accepts the debt, an advance can be drawn within the facility terms. Eligibility is assessed on the receivable, not the print job’s total budget.
Account for the final receipt
Customer settlement clears the relevant advance. Any retained balance is reconciled with charges, credit notes and other agreed adjustments.
Proof approval is not the same as payment acceptance
A signed artwork proof helps establish instructions, but delivery defects, shortages or reprints can still generate disputes. Keep the full job record and tell the funder when a claim affects an invoice. For packaging contracts, explain rebates and any stock held for call-off.
Decide where collections belong
Invoice factoring
A busy production office may value factoring support for routine payment follow-up. Keep technical complaints with staff who understand the job.
Invoice discounting
If your accounts team already manages trade customers effectively, discounting may let that process continue alongside funding.
Selective invoice finance
A single large print run may create a temporary need. Ask about selected-invoice funding and compare its total charge with the margin on that order.
Compare factoring and invoice discounting before choosing who manages collections.
Illustration: a delivered packaging order
Assume a £28,000 invoice is accepted at an 85% advance. The initial calculation is £23,800, with £4,200 remaining before charges. The result changes if only part of the invoice qualifies.
These figures demonstrate the mechanism and are not proposed terms for your business.
Check costs against the production margin
Model expected debtor days, the amount you will actually draw and any service minimum. Include setup and exit charges as well as ongoing fees. A cheaper-looking percentage may apply to more turnover than expected. See our guide to reading a fee proposal.
Build a clear job-to-payment record
Prepare sample jobs with orders, proof approvals and delivery notes, together with your debtor report and accounts. Explain disputes, customer concentration, call-off arrangements and current borrowing. This helps separate straightforward trade debts from work needing closer review.
Printing and packaging finance questions
Can stock printed for future call-off be funded?
Not simply because production is finished. The provider needs to establish whether there is a payable receivable under the customer contract.
What if a customer requests a reprint?
Notify the provider if the issue changes acceptance or payment. A disputed amount may be excluded until the commercial position is resolved.
Are small print invoices worth including?
Discuss average invoice size and volume. Administration costs and minimum fees can influence whether the facility is practical.
Can we keep chasing our own customers?
That is generally the role of discounting, subject to approval of your controls and reporting. Factoring normally includes provider-led collections.
Put your print ledger into context
Tell Positive Funding about your main customer accounts, payment delays and upcoming material bills. We can discuss how an invoice-based facility might fit your production schedule.
Funding is subject to eligibility and provider agreement. Fees, guarantees and security requirements vary. Explore other business sectors.