What are the typical interest rates and fees for printing industry finance?

Updated October 2025 • UK guidance for established limited companies only • Information, not advice

Short answer: Typical rates and fees for printing sector finance

Most established UK printing, signage and packaging firms see asset finance rates in the c. 7%–14% APR range for prime profiles, with higher costs for older kit or weaker credit. Unsecured business loans often sit around 12%–29% APR, while invoice finance pricing commonly combines a service fee of 0.5%–3% of turnover with a discount margin of Base Rate + 2.5%–6.5%. Arrangement, documentation and option-to-purchase fees are standard, and total costs vary by lender, asset, risk and term.

All figures are indicative, subject to status, and can change with market conditions. Best Business Loans does not lend or provide advice; we introduce you to suitable lenders and brokers so you can compare options.

Typical ranges at a glance

• Hire Purchase / Finance Lease: c. 7%–14% APR for prime; 9%–18%+ APR for near-prime or older assets.
• Operating Lease: Similar or slightly lower implied rate if a residual value is used, but not ownership.
• Equipment Refinance: Often c. 9%–18% APR due to higher perceived risk on used assets.
• Invoice Finance (Factoring/Discounting): Service fee 0.5%–3% of turnover; discount rate typically Base + 2.5%–6.5%.
• Unsecured Term Loans / Revolving Credit: c. 12%–29% APR for established SMEs; higher for adverse credit.
• VAT / Corporation Tax Funding: Often c. 8%–18% APR with modest setup fees.

Compliance reminder

Financial promotions must be fair, clear and not misleading. Rates and fees in this article are illustrative only, may not include all charges, and are subject to eligibility, credit checks and underwriting. Always review lender documentation and consider professional advice.

Explore tailored options

If you want sector-specific guidance and an eligibility check for presses, guillotines, wide-format or digital kit, see our dedicated printing page. Visit printing business loans and finance options.

What drives rates and fees for printing businesses?

Lenders price risk first, then structure. Your company’s trading history, profitability, balance sheet strength and credit conduct will influence rates more than the brand of press alone. A long-standing printer with strong cash flow and clean filings will often secure better pricing than a similar firm with thin margins or recent arrears.

The asset’s quality and resale potential matter. New B2 digital presses, CNC cutters or finishing lines with strong secondary markets may command sharper rates than highly bespoke or obsolete machines. Age, hours, manufacturer support and warranty status all impact perceived risk and residual values.

Key factors lenders consider

• Business profile: Years trading, director experience, sector stability and customer concentration.
• Financials: Profitability, leverage, liquidity, net worth and cash conversion cycle.
• Credit history: CCJs, arrears, HMRC time-to-pay, returned items and Companies House filings.
• Security: Type of asset, deposit paid, loan-to-value (LTV), guarantees and debentures.
• Deal terms: Facility size, tenure, repayment profile, seasonality and covenants.
• Market rates: Bank Base Rate movements, lender cost of funds and capital requirements.

How deposit and term affect cost

A larger deposit reduces lender exposure and can improve rates on hire purchase or leases. Shorter terms usually reduce total interest paid but may raise monthly repayments, which can influence affordability tests.

In volatile rate environments, some firms prefer shorter terms with early settlement flexibility. Others prioritise fixed payments over longer periods to match the useful life of the asset.

Common fee types to expect

• Arrangement fee: Often 1%–6% of facility or a fixed amount.
• Documentation/admin fee: Typically £100–£295 for asset finance agreements.
• Option-to-purchase (HP): Commonly £100–£200, payable with final instalment.
• Valuation/inspection fee: Sometimes charged for used assets or site visits.
• Broker fee: May be a fixed fee or small percentage; always disclosed up front.
• Early settlement/termination: Check contract for calculation method and any rebates.
• Invoice finance extras: Audit fees, minimum monthly fees, trust account fees and CHAPS fees.

Product-by-product cost breakdown for the print sector

Printing equipment is capital-intensive, and the right product can lower your total cost of ownership. Below is a practical guide to how lenders typically price the most common funding types used by printers, sign-makers and packaging firms.

Figures are typical only and subject to underwriting, asset specifics and market rates at the time of application. Always compare written quotes on a like-for-like basis.

Hire Purchase (HP) and Finance Lease

• Typical APR: Prime c. 7%–14%; older kit or near-prime c. 9%–18%+.
• Deposits: Often 10%–20%, but can be flexible with strong profiles.
• Fees: Arrangement 1%–3%; doc fee £100–£295; option-to-purchase £100–£200 (HP only).
• Tax treatment: HP may allow capital allowances; finance leases usually allow payments as deductible expenses. Seek tax advice.

Use cases include litho presses, digital presses, guillotines, folders, binders, laminators, flatbed UV, CNC routers and wide-format printers. New equipment with warranties often attracts better terms.

End-of-term options vary. HP leads to ownership after the OTP fee; finance leases often offer secondary rental or sale proceeds share.

Operating Lease

• Implied rate: Can appear lower if the lessor takes residual risk, but there is no ownership.
• Fees: Similar to finance lease, with potential end-of-term return conditions.
• Use cases: Rapidly evolving tech such as digital presses, RIP servers or DTF lines where refresh cycles are short.

Operating leases can keep payments lower during the term. Check for damage, usage and return clauses to avoid end-of-term charges.

Equipment Refinance (Sale-and-HP-back or Refinance)

• Typical APR: c. 9%–18%, reflecting used asset risk and valuation spread.
• Fees: Arrangement 1%–3%; valuation/inspection fees may apply.
• Use cases: Release equity from owned kit to fund growth, consolidation or tax bills.

Refinance relies on realistic market valuations of your assets. Expect lenders to haircut soft assets or highly specialised equipment.

Personal guarantees and debentures may be requested on larger lines or multi-asset facilities.

Invoice Finance (Factoring and Invoice Discounting)

• Service fee: Typically 0.5%–3% of annual turnover or facility volume.
• Discount rate: Often Bank Base Rate + 2.5%–6.5% on funds in use.
• Other fees: Setup £500–£2,500+; audit fees; minimum monthly fees; trust account charges.

Printers with B2B customers on 30–60 day terms can use invoice finance to smooth cash flow. Pricing improves with higher quality debtors and low disputes.

Confidential invoice discounting may offer lower service fees than full-service factoring, but requires stronger credit control and systems.

Unsecured Term Loans and Revolving Credit

• Typical APR: c. 12%–29% for established SMEs; higher for adverse profiles.
• Fees: Arrangement 0%–6%; potential drawdown or non-utilisation fees on revolving lines.
• Use cases: Working capital, software upgrades, small refurb projects or marketing spend.

Unsecured options are faster but usually cost more than asset-backed facilities. Clear evidence of affordability and purpose can support better terms.

Where card takings are material, merchant cash advances can be considered, but effective APRs are often higher, so compare carefully.

Early settlement, termination and variations

Fixed-sum agreements may apply interest rebates on early settlement, less a fee; variable-rate facilities will settle based on outstanding capital and accrued charges. Always request a written settlement figure and clarify any penalty clauses.

For invoice finance, check early termination notice periods, minimum fees and any exit audits. For leases, understand return conditions to avoid unexpected costs.

How to reduce your all-in cost of finance

Reducing the total cost is about risk presentation, product fit and negotiation. A tidy file and thoughtful structure can yield meaningful savings over the life of a facility. The following steps are practical for most printers.

Best Business Loans can introduce you to lenders or brokers aligned to the printing sector, helping you compare the most relevant routes quickly.

Practical steps that often improve pricing

• Strengthen the deposit or provide part-ex on older kit to lower LTV.
• Choose asset-backed options where possible for lower rates than unsecured.
• Provide up-to-date management accounts, aged debtor/creditor lists and forecasts.
• Demonstrate maintenance contracts, warranties and manufacturer support.
• Offer security or a capped personal guarantee only if appropriate and understood.
• Match term to useful life; avoid overlong terms that increase total interest.
• Consolidate small facilities if a single, cheaper line is available.

Documentation checklist for faster approval

• Last two years’ filed accounts and the latest management accounts.
• Bank statements (3–6 months), plus any existing facility statements.
• Asset details: model, age, serial numbers, supplier quote or valuation.
• Key contracts, order book visibility and proof of insurance.
• HMRC status and any Time to Pay arrangements.

Negotiation tips

• Ask for a full fee schedule, not just the rate, to compare like-for-like.
• Clarify early settlement terms in writing before signing.
• Check if a fixed or variable rate suits your risk view on base rates.
• Consider seasonal payment profiles if cash flow is cyclical.

A small reduction in rate or fees adds up across large ticket presses and finishing lines. Time spent upfront can produce material long-term savings.

Illustrative scenarios, FAQs and next steps

The numbers below are simplified and for illustration only. They are not offers or quotes, and they exclude taxes and certain fees for brevity. Actual terms will vary by lender and your profile.

Use them as a framework for thinking about affordability, not as a substitute for written terms.

Illustrative scenarios

• New digital press via HP: £250,000, 10% deposit, 5-year term. Prime profile might see c. 8%–12% APR, arrangement 1%–2%, doc fee £195, OTP £150. Monthly fixed payments support budgeting and ownership at term end.
• Used guillotine refinance: £40,000, 3-year term. Near-prime may see c. 12%–18% APR, arrangement 2%–3%, possible inspection fee. Suitable for unlocking equity to fund a mezzanine floor or working capital.
• Invoice discounting: £500,000 facility limit, advance rate 85%. Service fee 0.8%–1.5% of turnover; discount rate Base + 3%–5% on funds in use. Minimum monthly fees and audit charges may apply.
• Unsecured loan for software and training: £75,000 over 36 months. Pricing could fall around c. 14%–24% APR with a 0%–4% arrangement fee, depending on credit and affordability.

Frequently asked questions

Are rates fixed or variable? Many HP and leases are fixed, while invoice finance discount rates are often variable over Base Rate. Always confirm which applies.

Do older presses always cost more to finance? Often yes, due to resale risk and maintenance uncertainty. Exceptional assets with strong demand can be competitive.

How much does a broker or introducer cost? Some charge a fixed fee or a small percentage, while others are paid by lenders. Best Business Loans is an introducer and will disclose if any fees apply before you proceed.

Can I settle early without penalty? It depends on your agreement. Many fixed-sum contracts provide an interest rebate; request a settlement figure in writing.

Will a larger deposit improve my rate? Usually it lowers risk and can help, though the improvement varies by lender and asset type.

Key takeaways

• Prime printing firms typically see c. 7%–14% APR on asset finance and c. 12%–29% APR on unsecured loans.
• Invoice finance costs blend a service fee (0.5%–3%) with a discount margin (Base + 2.5%–6.5%).
• Expect arrangement, documentation and, for HP, option-to-purchase fees, plus possible early settlement charges.
• Asset quality, deposit, term, credit profile and market rates drive pricing more than any single factor.
• Compare written quotes on a like-for-like basis and clarify all fees before you commit.

How Best Business Loans can help

We help UK printers, sign-makers and packaging firms find relevant funding providers quickly. Our AI-led matching and professional network connect you with lenders or brokers who understand your sector.

We do not offer loans directly, do not provide financial advice, and cannot guarantee the lowest rate. We focus on relevance, clarity and speed so you can decide what works best for your business.

Ready to explore your options? Complete a Quick Quote to check eligibility and get connected to suitable providers for your printing business.

Important information and compliance

• All finance is subject to status, credit checks, affordability and underwriting.
• Rates and fees change, and figures here are illustrative, not offers.
• For business use only; typically for limited companies with trading history.
• Best Business Loans acts as an independent introducer; we are not a lender.
• Seek independent tax or legal advice where appropriate.

For regulatory resources, see the Financial Conduct Authority’s guidance on financial promotions and the British Business Bank’s information for SMEs. Ensure any decision is based on full, written terms from the provider.