In an industry that is so competitive, turning a profit takes a concerted effort:
Operating efficiently requires a 95% utilization of modern equipment
Controlling indirect expenses such as rent, utilities, insurance, and supplies
Maximizing the productivity of your staff.
Cash Flow Management
Juggling cash flow in a high-volume, low-margin business is an art form! Having completed a printing job, you are not paid for it for 30, 60, or even 90 days. While these may seem like reasonable payment terms for your clients who are waiting for magazine subscriptions to be paid or for books to sell, the long wait for payment can leave you short when it’s time to pay fixed expenses.
Ways to balance expenses and revenue include taking deposits with orders, proactive debtor management, and negotiating payment terms with your vendors.
Technology advances in printing machinery mean that your printing enterprise must frequently invest in new assets. Financing these upgrades can be an obstacle to remaining competitive.
How to Run a Successful Printing Company
To be successful in the printing industry, adopt these practices:
Financing Options for Printing Companies
Bank loans are viable if your credit rating and collateral are adequate.
Leasing equipment is more expensive in the long run, but an effective way to expand your business.
Invoice factoring involves a factor that purchases your invoices – paying you a percentage of the amount in 24 – 48 hours. Once your customer pays the factoring company, you get the remaining percentage back, less a predetermined factoring fee.
Look for a factoring company that has experience working in the printing industry. Printers have both long-range and short-term business goals. Partnering with factoring professionals who understand your industry, its challenges, and opportunities will better equip you to achieve these goals.
Want to get started with invoice factoring for printing companies? Request a factoring rate quote today.