How Invoice Finance Helped a Print Business Stay Ahead of the Squeeze

Summary
With tight supplier terms, heavy machinery costs, and shrinking margins, a commercial printer found itself struggling to maintain working capital. Late payments from clients could mean missing critical equipment finance or supplier deadlines. Lock Finance implemented an automated invoice finance solution integrated with the business's Xero system, ensuring fast, reliable access to cashflow — even when customers paid late.

The Backdrop: A Changing Industry and Cashflow Pressures

Commercial printing has been under sustained pressure for years. As more organisations move marketing and communication online, traditional print runs for brochures, magazines, and catalogues have declined. At the same time, printers face unyielding supplier terms, fixed costs on capital equipment, and a highly competitive pricing environment.

This particular business had survived through operational discipline and a loyal client base, but even small delays in customer payments created severe liquidity pressure. Monthly hire purchase commitments on machinery and time-sensitive supplier payments left little margin for error. The situation became critical whenever a debtor paid just a few days late.

The Catalyst: A Referral from Within the Industry

The company had already explored options with its bank but found limited flexibility. While they had heard of invoice finance before, they were hesitant until a peer in the printing sector recommended Lock Finance, citing the lender’s understanding of the industry and ability to fund quickly.

Lock Finance was invited to assess the business and its accounts receivable. The opportunity was clear: the issue wasn’t revenue — it was the timing of cashflow.

The Solution: Real-Time Invoice Finance via Xero Integration

Lock Finance implemented a daily invoice finance facility, seamlessly integrated with the company’s Xero accounting system via API. This allowed the business to access cash the moment a new invoice was issued, rather than waiting 30 to 60 days for customer payment.

Key features of the facility included:

• Daily funding, triggered by new invoices in Xero
• No need to manually upload invoice schedules or statements
• Flexible drawdowns, aligned with cashflow requirements
• Continued control of customer relationships and collections

The facility didn’t just unlock capital; it reduced the business's dependency on exact payment timing, creating much-needed breathing room.

The Outcome: Stability, Predictability, and Control

Since implementation:

• The business has met all supplier and equipment finance obligations on time
• Late-paying customers no longer derail operations
• Cashflow forecasting has improved, thanks to automated, data-driven funding
• The company retained its independence, avoiding deeper personal guarantees or asset sales
  
  

“We knew the print market was tough. Lock Finance gave us a way to keep operating confidently, even when things were tight. It’s changed how we manage our cashflow.”
— General Manager

Lessons for the Printing Industry

For many print businesses, the challenge is not profitability but timing. Machinery costs, supplier obligations, and narrow margins leave little room to absorb delayed payments.

Invoice finance for printers, especially when integrated with accounting platforms like Xero, offers a powerful way to stabilise operations and retain control. Rather than waiting on customers, businesses can rely on a funding partner that works at their pace.

Enquire

If your printing or manufacturing business is being squeezed by late payments and tight obligations, speak to Lock Finance. Our integrated solutions work in real time, not bank time.

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