How invoice finance works for packaging & label printers on 30–60 day terms

Summary: Many packaging and label printers wait 30–60 days for customers to pay. Invoice finance can release up to 85–90% of an invoice value within 24–72 hours, smoothing cashflow so you can buy substrates, pay staff and take new jobs. This guide explains how invoice factoring, invoice discounting and spot factoring work for 30–60 day terms, typical costs, eligibility checks and how UK Business Loans can help you get a free, no‑obligation quote from specialist lenders and brokers.

Quick summary — What you’ll learn

• How invoice finance converts 30–60 day invoices into working capital fast.
• Differences between factoring, invoice discounting and spot/selected invoice funding.
• Typical costs, advance rates and lender requirements for printers.
• How UK Business Loans can match you to specialist lenders and brokers — free and no obligation.

Get Quote Now for a free eligibility check.

Why invoice finance is common for packaging & label printers

Packaging and label printers often face long production cycles, upfront costs for substrates, inks and finishing, plus seasonal demand spikes. Jobs are invoiced on net 30–60 terms, so cash is tied up while you wait. That gap can stop you buying materials, hiring seasonal staff or taking growth orders.

Invoice finance is a natural fit because it directly monetises invoices rather than adding new debt against equipment or property. For many printers it’s the fastest way to free working capital without diluting ownership.

What is invoice finance? A quick explainer

Invoice finance is a working capital solution where a finance provider advances cash against unpaid invoices. Two common models:

• Invoice factoring: The funder typically takes responsibility for collecting customer payments and provides an advance against the invoice value.
• Invoice discounting: Confidential funding where you retain control of collections; the lender simply advances funds.

Printers commonly invoice on 30–60 day terms, and most invoice finance providers design facilities to match those cycles.

How invoice finance actually works for 30–60 day invoices (step‑by‑step)

Here’s the typical flow for a packaging or label printer with 30–60 day terms:

1. Issue the invoice: You deliver the print job and send an invoice to your customer with agreed 30–60 day terms.
2. Notify or sell the invoice: Depending on product, you either notify the provider or sell the invoice into the facility (whole ledger, selected invoices or spot factoring).
3. Advance payment: The funder releases an advance — typically between 70% and 90% of the invoice value — into your bank account within 24–72 hours after checks.
4. Customer pays: The customer pays the invoice on the due date. Payment is sent to the lender (factoring) or to you and then reconciled (discounting).
5. Remainder less fees: Once payment clears, the lender releases the remaining balance minus fees and any holdback.

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Typical advance rates & holdbacks

• Advance rates for 30–60 day invoices: typically 75%–90%.
• Holdback (reserve) retained until payment: usually 10%–25%.
• Longer payment terms, higher-risk customers or international invoices often reduce advance rates and increase fees.

Types of invoice finance suited to packaging & label printers

Which product matches your business depends on customer relationships, volume and confidentiality needs:

• Invoice factoring (full ledger): Best for businesses that want the lender to handle collections, or where rapid scaling requires outside expertise.
• Invoice discounting (confidential): Suited to established printers with repeat customers who prefer to keep funding invisible to clients.
• Selective / spot factoring: Ideal for financing single large contracts (e.g., a big seasonal packaging run) without committing the whole ledger.
• Asset‑based lending blends: Combine invoice finance with stock or work-in-progress (WIP) funding when presses or WIP use significant capital.

For sector-specific guidance see our printing & packaging finance overview at printing business loans.

Pricing — fees, rates and what to budget for

Invoice finance costs vary by provider, customer credit risk and invoice age. Typical components include:

• Discount/finance fee: Often 0.5%–2% per month of the invoice (approx 6–24% APR equivalent).
• Facility/maintenance fees: £50–£300 per month.
• Interest: Charged on advanced funds in some structures.
• Setup/admin fees: One-off onboarding charges possible.

Worked example: Invoice £20,000 (30 days). Advance 85% = £17,000 released. Discount fee 1% = £200. On payment, lender pays remaining £3,000 less any outstanding fees/holdback.

Always compare effective APR equivalents and check for hidden admin or breakup fees.

Eligibility & documents lenders will want

Most lenders typically ask for:

• 12 months of trading (some providers accept shorter histories for stronger customer books)
• Company accounts and management accounts
• Recent VAT returns and business bank statements
• Copies of invoices and customer details
• Top-customer list and proof of delivery/contract paperwork

Industry-specific checks include customer brand strength, return rates, disputes and any warranty terms that could affect recoverability.

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What lenders look for in packaging & label printers

• Strong, repeat customers (retailers, brand owners) with predictable payment behaviour
• Clear, timely invoicing and proof of delivery
• Low dispute and return rates
• Stable margins and an order pipeline
• Good bookkeeping (Xero, QuickBooks) — many lenders integrate directly

Benefits and common risks for printers

Benefits

• Rapid access to cash to buy substrates, inks and take new jobs
• Smooths seasonal peaks and prevents supply chain delays
• Non‑dilutive — you keep equity

Risks

• Fees can erode low margins — compare carefully
• Factoring can change how customers interact with your business
• Facility terms may include minimums or exit costs

Mitigations: get multiple quotes, consider confidential discounting and negotiate caps or trial periods.

How to prepare before you apply (quick checklist)

• Clean aged debtors list; resolve disputes
• Gather last 12 months’ accounts, VAT returns and bank statements
• List your top 10 customers and confirm their payment terms
• Ensure your invoicing system and bookkeeping are up to date

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Quick example / mini case study

Acme Labels Ltd completes a £45,000 packaging run on 60‑day terms. They use selective factoring with an advance rate of 80% and a 1% monthly discount fee.

• Advance released = £36,000 (within 48 hours)
• Fee for 60 days (approx): 2% = £900
• Net cash received quickly allows Acme to buy substrate to accept a new £60,000 order, increasing turnover and covering the fee.

Outcome: short-term cost for a cashflow boost that enabled growth and avoided production delays.

Why use UK Business Loans to find invoice finance for printers

UK Business Loans introduces you to specialist lenders and brokers who understand printing and packaging cashflow cycles. Our service is free and no obligation — we’ll match your business to the most relevant partners so you get focused quotes fast.

We don’t lend money or provide regulated financial advice; we simply connect you to providers who can. Free Eligibility Check — get matched and receive quotes by phone or email.

Frequently asked questions

Will invoice finance affect my customer relationships?

It can. Factoring usually notifies customers because the lender collects payments; discounting keeps funding confidential. Discuss options with a broker to protect client relationships.

Is invoice finance suitable for new businesses?

Some providers accept businesses trading less than 12 months if customers are very creditworthy, but most prefer 6–12 months trading and a stable sales ledger.

How quickly can I get funds?

Once approved, first advances are typically available within 24–72 hours. Speed depends on checks and integration with your accounting software.

Is this the same as a loan?

No. Invoice finance advances against sales invoices rather than creating separate term debt against the company’s assets.

Can I finance international invoices?

Yes — many funders offer export invoice finance, but expect higher fees and additional checks for cross-border risk.

Do I have to move my sales ledger to the lender?

Only for full factoring. Selective or discounting allows you to keep ledger control; discuss with brokers which model fits your customer base.

Ready to unlock cash from 30–60 day invoices?

Get fast, no‑obligation quotes from specialist lenders and brokers who understand packaging and label printing. Complete a short form and we’ll match you to the best providers.

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1. What is invoice finance and how can it help packaging and label printers with 30–60 day invoices?
Invoice finance converts unpaid 30–60 day invoices into immediate working capital so printers can buy substrates, pay staff and take new jobs without adding traditional debt.

2. How quickly can I access funds with invoice factoring or discounting?
Initial advances are typically released within 24–72 hours after approval, with subsequent draws often faster depending on the provider and accounting integration.

3. What’s the difference between invoice factoring and invoice discounting?
Factoring usually involves the lender collecting payments and notifying customers, while invoice discounting is confidential and lets you retain control of collections.

4. How much of an invoice can I get advanced and what holdbacks should I expect?
Advance rates for 30–60 day invoices commonly range from 70%–90% with a reserve/holdback of around 10%–25% released on customer payment.

5. How much does invoice finance cost for packaging and label printers?
Typical costs include a finance/discount fee of about 0.5%–2% per month (approx 6–24% APR equivalent), plus facility, setup and admin fees which vary by provider.

6. Will using invoice finance affect my customer relationships?
It can — factoring often notifies customers and changes payment interactions while confidential discounting keeps customer relationships unchanged.

7. Can I finance international or export invoices for overseas customers?
Yes, many providers offer cross‑border invoice finance but international invoices usually incur higher fees and stricter credit checks.

8. What documents and eligibility do lenders typically require for invoice finance?
Lenders usually ask for 6–12 months trading history (or strong customer books), company accounts, management accounts, VAT returns, bank statements and copies of invoices and contracts.

9. Is invoice finance suitable for new businesses or companies with imperfect credit?
Some lenders accept start‑ups or businesses with weaker credit if they have creditworthy customers, but most prefer 6–12 months trading and a stable sales ledger.

10. How does UK Business Loans help me find invoice finance and is the enquiry an application?
UK Business Loans is a free introducer that matches your enquiry to specialist lenders and brokers — the short form is not a loan application and there’s no obligation to proceed.