Given the current global economic situation, it is understandable that many companies are cutting back on costs and not investing as much as they would like. However, as we know here in the sign industry, ensuring you are running the best quality kit is critical if you are to win and keep hold of valuable work. Sign-makers in need of a helping hand when it comes to new investment have a number of options to consider in terms of financing and funding. There are plenty of cost effective and sensible schemes out there that will allow them to make the purchase they want without the traditional financial headache. A careful approach First, we speak with leading industry trade association ISA-UK to harness opinion on the best approach for sign-makers considering financing as an option. Craig Brown, chief executive of the ISA-UK says sign-makers should first consider if they are in a position to take financial support before exploring this route. “Most of the traditional routes available to get financial support are looking for propositions that are viable and with high probability of a return on that investment or loan,” Brown says, adding: “Financial support in our sector tends to be in the form of a loan, whether that be for kit, premises, or material, the asset has a value but it’s more about what revenue that asset can generate. “Using low interest rate external money has long been a model UK business has followed, with interest rates rising and the companies offering loans looking at stress testing the loans being offered in more detail. We as business owners are going to need to go into much more detail about how the repayment schedules drawn up are going to be honoured. “Is the financial support you are looking to take aimed at growing your business or plugging a gap? If the answer is ‘growing’ and your business can clearly show financial support will hasten that growth, why wouldn’t you explore that route.” Before going down the route of financing and funding, Brown says sign-makers should ask themselves if the funding is really needed and does the business model drawn up stand up to scrutiny? “I meet lots of people who are overly optimistic about the extra output a machine will allow them to create, without knowing how they are going to feed the sales pipeline first,” Brown explains. “Any business plan you create needs to stand up to scrutiny, you almost need to be creating a mini prospectus for the people A HELPING HAND With a wide range of funding options for sign-makers looking to purchase new machinery, a lack of funds needs no longer be a stumbling block for new investment with the advice and support available 69 NEED TO KNOW / FINANCING AND FUNDING www.signlink.co.uk Issue 245 - April / May 2023
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