Print Shop Merchant Cash Advance & Business Funding
Merchant cash advance for commercial print shops.
Commercial print shops can get a merchant cash advance to buy paper and fund equipment. Most revenue comes from business clients on invoice terms, so deposits lag the work. Staffing is steady through the year and slightly higher in winter. Funders read client concentration and how long clients take to pay.
How do funders read commercial print shops?
Funders ask about your largest clients and how much of revenue they make up. For a press, compare equipment financing.
How does money come in for commercial print shops?
Business clients pay invoices by ACH or check on 30-day terms or longer. Small jobs are paid by card. Paper and ink are bought ahead of the job and paid for fast.
Which months are slowest for commercial print shops?
This table shows how many people private commercial printing (NAICS 323111) businesses employed each month, as an index where the year's average is 100. It comes from the Bureau of Labor Statistics Quarterly Census of Employment and Wages, the most recent full year available. Staffing is a stand-in for how busy a business is. Deposits can move more or less than headcount, so read it as the shape of the year, not your numbers.
| Month | Staffing index (average = 100) | |
|---|---|---|
| January | 101 | highest |
| February | 101 | |
| March | 101 | |
| April | 101 | |
| May | 100 | |
| June | 100 | |
| July | 100 | |
| August | 99 | |
| September | 99 | lowest |
| October | 99 | |
| November | 100 | |
| December | 100 |
The low point is September at 98.7 and the high point is January at 101.5, a swing of 2.7 points. The first quarter's payroll runs a little above the rest of the year.
| Quarter | Total payroll index (average = 100) |
|---|---|
| Quarter 1 | 102 |
| Quarter 2 | 96 |
| Quarter 3 | 97 |
| Quarter 4 | 106 |
Payroll by quarter can rise at year end for reasons like bonuses and overtime, not only more work.
What do commercial print shops use merchant cash advances for?
- Paper stock for a large order.
- A press, cutter or finishing equipment.
- Wide-format or digital printing equipment.
- Payroll while a big client's invoice is open.
- Repairs.
What does an advance payment look like in a slow month?
Staffing barely moves through the year here, so the slow month to plan for isn't seasonal. Say your biggest client pays a month late and deposits come in 20% under average. Say a business like yours deposits $120,000 in an average month and carries a fixed payment of $12,000 a month, 10% of that average:
| Deposits | Fixed payment | Share of deposits | |
|---|---|---|---|
| Average month | $120,000 | $12,000 | 10.0% |
| A month 20% below average | $96,000 | $12,000 | 12.5% |
A fifth less in deposits turns a 10% payment into 12.5%. Keep a cushion for it, or ask how reconciliation works before you need it.
Which funding options fit commercial print shops?
Each page runs one option against this industry's slow months.
Same-day merchant cash advance for commercial print shops
Money the same business day for an urgent cost, with the fixed daily debit measured against a slow month.
Business line of credit for commercial print shops
A draw sized for a slow month, repaid in thirds, with the interest on the balance worked out.
MCA consolidation for commercial print shops
One payment in place of two, with the share of deposits before and after in a slow month.
Run a business like this?
Tell us your slow months up front and we'll look for funders that size for them. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.