Marketing Assistant
Publish on: 27 February 2024 at 09:19
The Complexity of Navigating Production Printer Credit Approvals
How relieving would it be if your new printer lease agreement was approved the first time? I imagine it would save a lot of time rather than a mad rush to remedy after your lease has been rejected. Alternatively, you can always pay a higher interest rate for that low creditworthiness. Meanwhile, your competitors are growing and investing in their businesses. How can this be proactively avoided? Well, a similar topic was recently covered in our latest podcast episode, featuring David Horton from Grenke. This article covers off much of what was discussed in this podcast, and goes further in explaining what may impact your credit approval.
Selecting the appropriate equipment for your printing needs can be a strategic decision that impacts your operations and financial health. When it comes to printer solutions, businesses often face the choice between purchasing or leasing equipment. Printer finance options play a crucial role in providing flexible funding solutions that enable businesses to access the latest printing technology without hefty upfront costs.
How to Choose the Right Printer Lease for Your Business
When considering leasing a printer, there are several factors to take into account to ensure it aligns with your business needs. The leased equipment should meet your printing volume requirements, quality standards, and budget constraints. Understanding the terms of the lease agreement, including monthly payment schedules, maintenance responsibilities, and end-of-lease options, is essential for making an informed decision.
Printer leasing offers businesses numerous benefits, such as cost-effectiveness, scalability, and access to advanced printing technology. By leasing printers, businesses can spread the cost over time, conserving capital for other operational needs. However, it is crucial to avoid common mistakes like underestimating printing volume, overlooking maintenance agreements, or committing to lengthy contracts without considering future business growth.
Creditworthiness and Financial Stability
Finance companies take a holistic view when assessing a company’s enquiry for a lease agreement. Ensuring that they look at the entire picture before deciding on whether they should deny or accept a lease. The main thing that the underwriters will check is the financial performance of the enquiring business. To do this, the finance company will request an assessment from a credit reference agency. They will also assess the value of the business known as the net worth and check the creditworthiness of the customer. A solid financial standing enriches confidence in the underwriters and positions the enquiring company in a more favourable position.
Understanding Printer Finance Options
Various finance solutions are available for businesses seeking to acquire printing equipment. Printer finance provides growing businesses with the opportunity to invest in state-of-the-art printers without incurring large capital expenditures upfront. These finance options offer flexibility in terms of payment structures, enabling businesses to manage cash flow effectively and stay competitive in the market.
Businesses can benefit from accessing the best printer finance deals by researching different providers, comparing terms and rates, and finding solutions that align with their specific requirements. Whether it’s through lease agreements, asset finance, or rental arrangements, there are diverse options tailored to meet the unique needs of businesses in the UK print industry.
Challenges in Credit Approval
There are some common hurdles that companies face when seeking credit approval. Factors such as net worth, liquidity, and debt-servicing capabilities are crucial considerations in underwriting proposals. The impact of monetary withdrawals on a business’s value can also present challenges, particularly when dealing with high-value assets. It is pivotal that businesses provide complete and accurate information for informed decision-making. Specific details such as company registration number, correct company name, equipment description, and contract specifics are essential components in the credit approval process.
However, there are significant costs associated with underwriting proposals and the unrecoverable expenses incurred when rejecting potential deals. This emphasises leasing companies’ commitment to finding ways to say “yes” to proposals.
“It’s a bit like a jigsaw puzzle, the jigsaw puzzle we use, say consists of a hundred pieces. If you use companys house on its own and in isolation, that’s a very small part of that jigsaw puzzle picture. You are not seeing the complete picture. There is nothing wrong with the information, it’s just you’re not seeing all of the information that’s out there and available”.
– David Horton (Managing Director of Grenke)
The Benefits of Leasing Print Equipment for Your Business
Leasing printing equipment provides businesses with the flexibility to adapt to changing printing demands and technology advancements. Through lease agreements, businesses can access the latest printing innovations without the financial burden of purchasing equipment outright. This enables businesses to stay competitive, improve efficiency, and meet evolving customer expectations.
Choosing affordable printing equipment through lease agreements allows businesses to spread the cost over time, making it easier to budget for operational expenses. Whether it’s for large format printing, toner-based systems, or multifunctional devices, leasing offers a cost-effective solution for businesses looking to upgrade their printing capabilities.
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Navigating the Commercial Print Industry in the UK
The UK commercial print industry has specific requirements for printing equipment to meet quality standards and regulatory compliance. Businesses in the print sector need to implement effective asset management strategies to maximise the utilisation of printing equipment, reduce downtime, and optimise operational efficiency. Obtaining quotes from reputable suppliers for printing equipment is essential for businesses to make informed decisions based on price, quality, and service.
By understanding industry requirements, investing in reliable assets, and staying informed about the latest printing technologies, businesses can gain a competitive edge in the dynamic UK print market. Partnering with industry-leading providers can offer businesses access to a wide range of printer solutions, installation services, and ongoing support to meet their printing needs efficiently.
Re-evaluate the Situation
Every business enquiring about a lease agreement is unique, and while a lease denial may be disheartening, it offers an opportunity for improvement. In this situation, the company can focus on re-evaluating its business. By enhancing the company’s overall financial performance, increasing cash flow, and demonstrating greater liquidity to reshape the narrative. By having more cash going through the business, financial companies could see greater liquidity and a greater ability to service their debt. This re-evaluation and proactive approach will make it easier for the underwriter to approve a future lease agreement.
Contact us today and unlock the potential for a more efficient and streamlined workflow: +44 (0) 330 043 2408
