Is printing equipment the main security for asset finance?

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Short answer: usually equipment is primary, but not always

In most asset finance agreements for printing kit — particularly hire purchase (HP) and finance leases — the financed printing equipment is treated as the primary security because the lender retains an interest in that asset until you’ve paid in full or the lease ends. However, lenders rarely rely solely on the physical asset. Expect additional protections such as company charges, personal guarantees or insurance covenants in higher-value or riskier transactions.

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What is “asset finance” and how lenders secure it?

Asset finance covers ways to buy or use equipment — from a new digital press to a finishing line — without paying the full purchase price upfront. Common forms used by printing businesses include:

• Hire Purchase (HP) — you hire the asset and gain ownership after the final payment; the lender has a security interest until ownership transfers.
• Finance Lease — lender owns the asset; you pay to use it for an agreed term.
• Operating Lease — short-term rental where the asset remains with the lessor at term end.
• Sale and leaseback — you sell owned equipment to a funder and lease it back to release working capital.

How lenders typically secure deals

• Security over the asset: physical identification (serial numbers), retention of title or lease documentation making clear the lender’s rights.
• Companies House filing: higher-value deals often include a fixed or floating charge (debenture) registered against the company.
• Insurance & maintenance covenants: lenders require evidence that the machine is insured and maintained to protect residual value.
• Personal guarantees: often required from directors for mid- to high‑risk cases or where the company trading history is limited.

What this means for you: HP and finance leases give the lender clear recovery rights if you default, but those rights sit alongside wider commercial protections lenders commonly ask for.

Printing equipment — the asset specifics lenders consider

Not all presses or finishing kit are equal in the eyes of a lender. When assessing whether the equipment will form the main security, lenders look at:

Which printing equipment holds good security value?

• High-value, widely traded assets — e.g., new digital presses (HP Indigo, Xerox iGen), commercial offset presses, reputable finishing lines.
• Well-documented machinery with serial numbers and original supplier invoices.
• Equipment with established secondary-market demand (easy to sell or re-lease).

What reduces collateral value

• Rapid obsolescence — older digital kit or models nearing end-of-life.
• Heavily customised or site-built units with limited resale appeal.
• Poor maintenance, missing parts or incomplete service history.
• Location or landlord restrictions that prevent removal.

Lender practical checks

• Photos and serial numbers, physical inspection or professional valuation.
• Service logs, supplier warranty or refurbishment records.
• Insurance certificates and proof of ownership (if previously owned).

Is the equipment the “main” security in practice?

There’s a spectrum depending on business size, asset value and risk profile.

• Small single-site print shop buying a single digital press: equipment commonly acts as principal security — especially for HP/lease — but expect lenders to ask for director guarantees or a company debenture for modest additional protection.
• Growing commercial house buying multiple assets: lenders will usually take security over the specific asset(s) and also request a general debenture covering other company assets to protect against wider business risk.
• Second-hand or specialist purchases: lenders often add valuation requirements, larger deposits (20–40%) or extra security such as personal guarantees.

Typical additional securities lenders ask for:

• Personal guarantees from directors
• Fixed and/or floating charge registered at Companies House
• Cash deposits or higher initial payments
• Confirmation of insurance naming the lender as loss payee

Bottom line: printing equipment is frequently central to the finance contract, but lenders seldom accept it as the sole protection — especially for deals from around £10,000 and up.

Preparing your printing business to get asset finance

Be ready — preparation speeds approvals and improves terms. Have these documents and details ready:

• Asset list: make, model, serial numbers, age, photos and supplier invoices if available.
• Service history and maintenance contracts.
• Recent company accounts (usually last two years) and current management accounts.
• Cashflow forecast showing how the new equipment improves revenue or efficiency.
• Insurance details and quotes if insurance must be arranged before drawdown.

Practical tips to improve acceptance and rates:

• Buy newer kit or offer a smaller deposit.
• Use reputable suppliers who provide warranties and delivery/installation evidence.
• Maintain clear servicing records and keep the machine in a secure, documented location.

Costs, deposit, term options & tax treatment

Typical costs to consider:

• Deposit or initial rental (commonly 0–30% depending on age and lender appetite).
• Interest or lease rentals, arrangement and documentation fees.
• Insurance, asset valuation and repossession protection costs.

Terms vary: short operating leases might be 12–36 months; finance leases and HP commonly run 2–7 years based on asset life. Tax treatment differs for HP (capital allowances may be available) and leases (rental payments may be deductible). Always check with your accountant for tax advice — UK Business Loans does not provide tax advice.

Alternatives to asset-secured finance

• Unsecured business loan: possible for smaller ticket items but often at higher rates.
• Invoice finance: if you have strong receivables, this can fund equipment purchase.
• Overdraft or merchant facilities: short-term bridging options.
• Sale and leaseback: release working capital from existing equipment.

How UK Business Loans helps

We’re an introducer that simplifies the search for the right printing equipment finance. How it works:

1. Complete our quick enquiry form (takes around 2 minutes).
2. We match your request with lenders and brokers experienced in printing equipment finance.
3. Selected partners contact you with tailored quotes and next steps.

Our service is free and there’s no obligation — just a fast route to compare suitable options. Ready to compare quickly? Free Eligibility Check — Get Quote Now.

Real examples (mini-case studies)

Case study A — New digital press (SME): A three-year HP for a £120,000 digital press. The lender took the press as primary security, required a 10% deposit and a director guarantee. Finance approved in 48 hours after asset photos and supplier invoice were provided.

Case study B — Used finishing line (commercial converter): A £65,000 second‑hand finishing line required a professional valuation, 25% deposit and a company debenture. The lender offered a higher rate but flexible repayments; completion took 10 working days.

FAQ

Do lenders always take the printing press as security?

No. Many lenders do for HP and finance lease deals, but they commonly ask for additional protections such as company charges or director guarantees.

What happens if my equipment is repossessed?

Repossessions are a last resort. If a lender repossesses, it will typically be sold to recover outstanding debt. You may be liable for any shortfall after sale and for repossession costs if your agreement allows.

Can I finance second‑hand presses?

Yes. Expect valuation, stronger servicing history proof, a larger deposit and sometimes higher rates depending on age and resale market.

Will an enquiry affect my credit score?

No. Submitting our enquiry form does not affect your credit score. Lenders may carry out formal credit checks only if you move to an application stage with them.

How quickly can I get a quote through UK Business Loans?

Many lenders/brokers can respond within hours; full quotes are typically available within 24–72 hours depending on complexity.

What if my business credit record is weak?

We can match you with specialist lenders and brokers who consider a range of factors beyond credit history — sometimes higher rates or additional security are requested, but options often exist.

Final CTA & next steps

Want to find out which finance route suits your press or finishing kit? Complete our short, free enquiry and we’ll match you to lenders and brokers who specialise in printing equipment finance. It takes around two minutes and carries no obligation: Get Quote Now — Free Eligibility Check.

We’ll share your enquiry with a small number of trusted lenders and brokers. Completing the form does not affect your credit score. For full details see our Terms & Privacy pages.

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Legal & compliance: UK Business Loans is an introducer and is not authorised by the FCA to provide regulated advice. Finance options described are indicative; individual lenders will apply their own checks, terms and business lending criteria.

Internal reference link: printing business loans

1. Can I get asset finance for printing equipment?
Yes — UK businesses can finance new or used presses via asset finance (hire purchase, finance lease or sale and leaseback) subject to lender checks and asset suitability.

2. Is the printing press used as the main security for asset finance?
Often yes — for HP and finance leases the financed equipment is usually the primary security, though lenders frequently require additional protections for higher‑risk or higher‑value deals.

3. Can I finance second‑hand presses?
Yes — many lenders will fund second‑hand printing kit but typically ask for a professional valuation, detailed service history and a larger deposit or extra security.

4. What documents will lenders ask for when financing printing kit?
Lenders commonly request asset details (make, model, serial numbers, invoices), service logs, recent company accounts, management accounts, insurance evidence and a cashflow forecast.

5. Will submitting an enquiry through UK Business Loans affect my credit score?
No — completing our free eligibility enquiry does not affect your credit score; lenders may carry out formal credit checks only if you progress to an application with them.

6. Is the enquiry form a formal application and is UK Business Loans a lender?
No — the enquiry form is only to match you with suitable brokers and lenders; UK Business Loans is an introducer, not a lender, and we do not provide regulated financial advice.

7. How quickly can I expect quotes for printing equipment finance?
Many matched lenders and brokers can respond within hours, with full tailored quotes typically available within 24–72 hours depending on complexity.

8. What additional security might lenders require besides the equipment?
Lenders often ask for director personal guarantees, fixed or floating charges registered at Companies House, higher deposits and lender‑nominated insurance arrangements.

9. Can a business with poor credit still get finance for printing equipment?
Yes — specialist lenders and brokers we work with often consider applications with imperfect credit histories, though terms may include higher rates or extra security.

10. What alternatives exist if asset‑secured finance for a press isn’t suitable?
Alternatives include unsecured business loans, invoice finance, overdrafts, merchant finance or sale‑and‑leaseback arrangements to release working capital.