Cashflow is a sore topic for many small businesses and it’s no different in the printing sector. We aren’t exactly operating in a boom economy right now and all the uncertainty created by Brexit, and a change of political leadership, is making many people cautious about spending significant sums. The good news is that, despite all of the above, if you’re looking to finance a large investment in a machine then it’s actually a lot easier than you might think.
We’re all familiar with the various offers and bundles that are available when it comes to buying new machinery. Depending on your cashflow and objectives, though, these might not always be enough. Thankfully, there are other options to help you get the machine that you need with a payment plan that is right for you.
Working with Perfect Colours means that there are no restrictions and you can bring the machinery you really need into your business – not just what you can afford. There is no upper limit on finance, depending of course on your credit situation; in fact, we have in the past financed deals that are in excess of £1 million. There are also no restrictions on machinery so we can put together a complete solution based on your ongoing requirements. So, whether you want to take full advantage of increased print throughput by installing an Esko Kongsberg cutting table, or to invest in a full textile suite with fixation from GoTx, or even a cluster of HP Latex machines for high volumes of sign and graphics work, it’s all possible.
Knowing that there’s an option out there to suit your financial requirements, you can also rely on Perfect Colours to have you up and running in a matter of weeks, allowing your business to be responsive to new vertical markets or market changes in no time. So – what are the choices?
This is one of the most popular options for financing a large investment where the initial price would be too costly in one payment. Hire purchase is an easy way to spread the cost with fixed monthly payments at a rate you can afford. Plus, once everything is paid off, the machine belongs to you. The downside of hire purchase is that tax relief is only available on the interest and it’s worth bearing in mind that you would need to pay all the VAT up front.
The finance lease is a conventional leasing arrangement and is a traditional choice for acquiring machinery that takes a substantial investment. There are plenty of benefits to a finance lease, including the fixed monthly payments that are easy to budget for. Tax and VAT are made easier too, as VAT can be claimed back on each payment for those who are registered, and payments are also tax deductible. The downside of the finance lease is the lack of ownership – at the end of the process the machine is returned, which gives you the option of upgrading without having to shift your older machinery.
With a FMVL, the lease can be between two and five years, depending on what suits you. This is the most popular type of lease offered by Perfect Colours as it is incredibly flexible. The financier works out the basic value at the end of the lease and that is deducted from the capital value – you need only borrow the rest. FMVL tends to have lower monthly payments and the VAT is refundable on the payments, which are also tax deductible. At the end of the FMVL you don’t own the equipment but there is an option to either return it, or to pay a fair market valuation and bring it into the ownership of the business.
FMVL works well for machinery that is worked hard through the course of its life, such as flat-beds from Jetrix, textile machines from GoTx or a cluster of HP Latex engines, all of which are designed for mid- to high-volume production around the clock. Hire purchase and finance leases are suitable for sign and graphics machines too but we tend to find companies investing in CAD and technical printers opt for these due to lower wear and tear over the life of the equipment.
However, any of these options could be right for you, depending on your situation. If you’ve been hesitating over an upgrade but know it’s the right time for you, ask one of our expert sales team to advise you: Contact Us today and we can help you Build a Quotation – and finance it in a way that suits your business.