The world of books, newspapers, magazines, and other written materials has changed dramatically in the last ten years, but there will always be a need for printed materials. While many periodicals have shifted to online subscriptions and many books are now downloads, printing companies continue to meet a market need for necessary materials for businesses and consumers.
With the latest technology advances, the printing industry today is configured much differently than the industry of even a decade ago. However, one element of the business has not changed and that is the challenge that printing industry professionals face when they complete a job, but are not paid for it for 30, 60, or even 90 days. While these may seem like reasonable payment terms for your customers who are waiting for magazine subscriptions to be paid or for books to sell, the long wait for payment can leave printing companies short when it’s time to pay fixed expenses.
Factoring companies can help close the gap between sending out invoices for completed print jobs and receiving payment from customers. This type of financing provides advances on an invoice often within hours of a completed printing job. Factoring can speed up a printer’s cash flow enabling them to meet all their expenses and even negotiate volume discounts on paper or work for customers with longer payment terms. Factoring can also provide the funds a printer needs for hiring more staff or buying new equipment, without any need for loans or incurring debt.
Tips for Printing Companies
Look for a factoring company that has experience working with printers. Printing companies have both long-range and short-term business goals and partnering with factoring professionals who understand these will help you achieve your goals.