Manageable finances and easier access to the latest technology are just two of the benefits to leasing equipment. Katie Dowse of Clear Asset Finance outlines why printers should think beyond ownership of their kit.
‘It is no surprise that the landscape of printing equipment has changed in the digital age, but it is important to realise how much of an impact this transition is having upon finance for printers. Banks traditionally have been happy to fund ‘hard assets’, that is to say the large, immovable hunks of metal that make up traditional printing presses. These have residual value or worth for many years after they are first bought.
With the digital space evolving at such a rapid pace, the traditional finance channels are having to re-adjust their underwriting criteria and accept that, potentially, the equipment they are financing will be all-too-quickly superseded by faster, more cost effective, technology.
Because of this, the residual value of equipment on the digital side is not a contributing factor in the underwriting decision – it becomes a pure balance sheet lend and is based heavily on the key individuals behind the business and the ability to service the debt.
It is also key for the funders to know the rationale for the purchase and how it will enhance the business. As such, every finance proposal requires a level of individualisation.
In this environment, ownership of an asset is far less important. Paying a lump sum for a quickly-depreciating asset is a quick way to hinder your working capital. Your competitors will certainly be taking every technological and economic advantage they can get.
The result is that leasing has flourished as the financial solution of choice in the printing industry. The advantage of being able to keep your equipment up to date without a huge financial liability every few years is enormous. Leasing gives you the flexibility of upgrading to new equipment at any point in a lease agreement, allowing you to keep up with the rapid evolution of digital technology, and your fellow printers.
Katie Dowse of Clear Asset Finance
With expertise in acquiring finance for the printing industry, Clear Asset Finance provides the flexibility and personalised service that both printers and their funders require. We have a panel of more than 20 funders, which allows us to offer the most competitive rates for the print industry.
We also tailor our service for every proposal. Having an understanding for every customer and piece of equipment is important to funders when considering a lease agreement, and Clear Asset Finance crafts its proposals to best represent our customers.
As for our funders, they have proven enormously receptive to the digital revolution. Print is a solid, reliable, dependable industry, and our funders have a large appetite for digital printing presses.
The real selling point of leasing, of course, is that it is not only beneficial for printing presses. Clear Asset Finance can also arrange finance leases for virtually any asset within your business: office equipment and entire refits and mezzanine floors, right through to 100% software and hosted solutions.
It is important for every business to understand the benefits of leasing. It preserves cashflow, and provides a more immediate and obvious return on every pound invested, and enables you to adapt as technology evolves.’
