Can I pair invoice finance with asset finance to smooth cash flow and buy printing equipment?

Quick answer: Yes — many printing businesses successfully combine invoice finance (to unlock cash tied up in unpaid invoices) with asset finance (to buy or lease presses, cutters and finishing kit). When structured correctly the two facilities can sit side‑by‑side or be layered (senior/junior), giving immediate working capital while spreading the cost of equipment. Whether it’s right for your print shop depends on your customers’ credit profile, balance-sheet security, and the exact terms and fees — get a free eligibility check to compare options and see likely costs.

UK Business Loans is not a lender and does not provide regulated financial advice. We introduce businesses to lenders and brokers. Using our service is free and does not perform a credit search — lenders may run checks only if you proceed with an application.

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What are invoice finance and asset finance?

Invoice finance and asset finance solve different problems. For a print business they are complementary: invoice finance releases cash tied up in unpaid customer invoices; asset finance spreads the cost of buying or leasing machinery so you don’t drain working capital to buy a press outright.

Invoice finance explained

• What it is: A lender advances a percentage of the value of your outstanding invoices (factoring or invoice discounting), giving you immediate cash rather than waiting for customer terms (30–120 days).
• Types: Factoring (lender manages collections) and invoice discounting (you retain collections control).
• Typical in printing: Useful when large B2B customers or long payment terms create cash gaps — common in commercial printing, brochures, and packaging runs.

Asset finance explained

• What it is: Funding to buy or lease equipment (hire purchase, finance lease, operating lease). Lenders base the facility on the asset value and expected useful life.
• Terms: Deposits can be 0–20% with terms typically 2–7 years depending on equipment type (shorter for digital kit, longer for heavy offset presses).
• Typical use in printing: Digital presses, plate setters, cutters, folders, binders and finishing lines — can be new or used equipment.

Quick reference for printers: invoice finance can free cash within 24–72 hours once set up; asset finance approvals often take a few days to a few weeks depending on valuation and supplier quotes.

Why printing businesses combine them

If you run a print shop you’ve probably experienced slow paying clients and expensive presses that need replacing. Combining invoice finance and asset finance addresses both problems simultaneously.

• Smooth cash flow: Invoice finance converts invoices into working capital so you can meet payroll, buy paper and fulfil large jobs without delay.
• Invest in equipment without draining cash: Asset finance lets you acquire a new digital press or finishing line and spread payments over its working life.
• Scale up for big contracts: When a seasonal or one-off large contract arrives, invoice finance funds materials and labour while asset finance secures the kit you need to fulfil the contract.

Example scenario (indicative only): A regional print business wins a £250k packaging contract with staged invoices (30/60/90 days). Invoice finance at a 80% advance on invoices unlocks c.£200k cash to buy consumables and meet payroll. Asset finance spreads the £120k cost of a new digital press over 5 years with manageable monthly payments. Together they let the firm accept and deliver the contract without using its overdraft.

How the two work together in practice

Here’s how lenders and brokers typically approach combined facilities and what to expect when you stack invoice finance alongside asset finance.

Compatibility and lender approaches

• Many lenders will allow you to operate both facilities if the security and covenant structure is clear. Invoice finance providers often take a charge over receivables; asset financiers take a fixed charge or retain the asset until paid.
• Some providers prefer to be the sole senior chargeholder. Where that’s the case, your broker will structure facilities so each lender’s security is explicit (senior vs junior).

How funding stacks (security & covenants)

• Senior vs junior security: Typically one lender holds senior security (e.g., invoice finance as a working capital facility), and the other accepts a secondary position or takes security over specific equipment only.
• Covenants: Expect cashflow covenants, reporting requirements, and restrictions on additional borrowing. Keep these under review to avoid breach risk.

Repayment structures & cashflow modelling

• Invoice finance is revolving: advances and repayments move with invoices. Asset finance is fixed term with scheduled repayments.
• Create a simple 12-month cashflow model showing invoice timing, expected advances, asset repayments and peak working capital needs — lenders will want to see this.

Documentation checklist (what lenders/brokers will ask for)

• Recent management accounts and/or statutory accounts
• Ageing analysis of invoices and major customer details
• Quotes or pro-formas for the equipment you intend to buy
• Company registration, UTR, and ID for directors/shareholders
• Business plan or contract details for any large job being funded

Tip: provide supplier invoices/quotes for the equipment and a sample of customer contracts to speed up assessments.

Pros, cons and common pitfalls

Pros

• Immediate improvement in liquidity while preserving capital for operations.
• Ability to purchase or lease equipment that increases capacity or reduces unit costs.
• Facilities can be tailored — invoice finance for day-to-day gaps, asset finance for long-term investments.

Cons and red flags

• Combined fees can make overall cost higher than a single facility — always compare total cost of funding.
• Double security or complex priority arrangements increase legal complexity and may restrict future borrowing.
• Cross-default clauses can cause a default on one facility to affect the other.

How to avoid pitfalls

• Get clear, written details of security positions and priority.
• Model combined costs and cashflows — ask lenders for illustrative examples (labelled “indicative only”).
• Use a sector-aware broker who understands printing equipment lifecycles and invoice profiles.

Typical costs & eligibility for printers

All figures are indicative only — exact pricing depends on credit profile, customer base and asset age.

• Invoice finance: Advance rates typically 70–90% of invoice value (depends on customer credit and product). Fees commonly include a discount charge (0.5%–3% per month equivalent) and service fees.
• Asset finance: Deposit 0–20% typical; terms 24–84 months depending on asset type; rates vary widely by asset age and borrower strength.
• Minimum facility sizes: UK Business Loans typically arranges finance from around £10,000 upwards — larger facilities provide better pricing in many cases.

Eligibility checklist: trading history and turnover, invoices from reputable B2B customers, acceptable asset type (commercial presses, cutters, binders), and reasonable director credit profiles.

How to apply — step by step

1. Gather documents: accounts, invoice ageing, equipment quotes and any large contract paperwork.
2. Complete a short enquiry: Get Quote Now — Free Eligibility Check (our form is not an application; it helps us match you to the right lenders/brokers).
3. Receive matched contacts: brokers or lenders will contact you with indicative quotes to compare (review advance rates, interest, fees, security and covenants).
4. Choose and proceed: once you accept an offer lenders carry out due diligence; when completed funds/asset delivery follow the agreed drawdown plan.

Next step — if you want tailored market matches and quotes, complete our quick enquiry now: Start your free eligibility check.

Mini case studies (anonymised)

Example A — Small digital printer
A 12-person print shop with £1.2m turnover used invoice discounting (advance ~80%) to release £40k from an ageing ledger and secured asset finance to buy a £75k digital press over 5 years. Outcome: met a large local retail chain contract and increased throughput without tapping an overdraft.

Example B — Packaging printer
A medium-sized packaging printer took a 0% deposit hire purchase for a new finishing line and combined it with factoring to fund raw materials during a seasonal peak. The structure allowed fulfilment of a single £350k contract that would otherwise have been declined.

FAQs

Can lenders take security over both invoices and equipment?

Yes — lenders can take separate security (receivables charge and fixed charge over equipment). When combined, facilities are usually negotiated to clarify seniority and enforcement rights.

Will using both affect my credit score?

Submitting an enquiry via UK Business Loans does not affect your credit score. Lenders may run credit checks only if you proceed with a formal application.

How soon can I get approved?

Invoice finance setups can be completed in days if customers are acceptable; asset finance approvals vary from a few days to a few weeks depending on valuation and paperwork.

What ongoing fees should I expect?

Invoice finance typically has discount charges and service fees; asset finance has interest and possibly a documentation fee — always ask for a full Schedule of Charges.

Is my printing business too small?

We typically arrange facilities from £10,000 upwards. Many lenders specialise in SME printing businesses — complete a quick enquiry to see who can help.

Ready to explore options? Get tailored matches and indicative quotes from lenders and brokers who understand printing businesses. It’s free and not a loan application — just tell us a few details and we’ll connect you: Get Quote Now — Free Eligibility Check.

Further reading: see our sector page about printing business loans for industry-specific guidance, and visit our guides on invoice finance and asset finance UK to learn more.

Privacy note: the enquiry form is for matching purposes only. Submitting it does not commit you and will not perform a credit search. Your details are shared only with selected lenders or brokers relevant to your request.

1. Can I use invoice finance and asset finance together for my printing business?
Yes — many printers combine invoice finance (to free up cash from unpaid invoices) with asset finance (to buy or lease presses and finishing kit) using senior/junior security or separate charges so both facilities can operate side‑by‑side.

2. How quickly can I access funds with invoice finance and asset finance?
Invoice finance can release cash within 24–72 hours once set up, while asset finance approvals typically take a few days to a few weeks depending on valuations and paperwork.

3. What types of asset finance are suitable for printers?
Printers commonly use hire purchase, finance leases or operating leases for digital presses, cutters and finishing lines with deposits typically 0–20% and terms from 2–7 years.

4. What costs should I expect when combining invoice and asset finance?
Expect invoice finance advance rates of c.70–90% with discount charges (roughly 0.5%–3% monthly equivalent) plus asset finance interest and possible documentation fees, so always compare total cost of funding.

5. Will submitting an enquiry through UK Business Loans affect my credit score?
No — our quick eligibility check is not a loan application and won’t affect your credit score; lenders may run credit checks only if you proceed with a formal application.

6. What documents will lenders and brokers ask for when I apply?
Prepare recent management or statutory accounts, invoice ageing and major customer details, equipment quotes, company registration/UTR and ID for directors, plus any large contract paperwork.

7. Is my small or start‑up print business likely to be eligible?
Many lenders we work with arrange facilities from around £10,000 upwards, with eligibility depending on trading history, turnover, customer creditworthiness and director profiles.

8. Can lenders take security over both invoices and equipment, and how does priority work?
Yes — lenders can take a receivables charge and a fixed charge over equipment, and priority (senior vs junior) is negotiated in the facility documentation to clarify enforcement rights.

9. How should I model cashflow to convince lenders my combined facilities will work?
Produce a simple 12‑month cashflow showing invoice timing and advances, asset repayment schedules, peak working capital needs and how the facilities will cover materials and payroll.

10. How do I start the process with UK Business Loans to explore combined finance options?
Complete our free two‑minute enquiry form for a no‑obligation eligibility check and we’ll match you with specialist lenders and brokers who understand printing and equipment finance.