Even with the advent of digital technology, printing remains as important as ever, and printers live and breathe deadlines. Dealing with last-minute marketing campaigns, or the incredibly high volume that comes with seasonal orders around holidays like Christmas, can be stressful to say the least. The last thing printers want to worry about is accounting and cash flow, but due to the nature of the industry, people don't always have that luxury.
Enter trade credit. A solution that allows printers to have some room to breathe, and to focus on what they specialise in: designing and printing stellar stuff. In this article, we break down how trade credit for printers works, and why it's the economic lubricant of the industry as a whole.
Why large-volume printing orders strain cash flow
Large-volume printing jobs are the most profitable contracts a printer secures. They will come from retailers, marketing agencies, corporations, or politicians with national campaigns. That being said, due to their large volume, they can also come with cash-flow constraints for the following reasons:
Upfront costs of materials
Paper and ink might seem like insignificant items, but they aren’t so insignificant when ordered in bulk. Large-format paper, specialty finishes, and color inks must often be purchased weeks in advance. Finishing supplies like laminates, binding, and packaging add to the bill. For a single high-volume catalog or flyer run, material costs alone can easily reach tens of thousands of pounds.
Equipment and labour pressures
Humans and equipment have something in common; they can both break but in different ways. Big jobs push presses and finishing machines to their limits. Printers face higher maintenance costs, longer operating hours, and sometimes need to bring in extra staff to meet deadlines. These are costs that can have an adverse effect on cash flow any way you shake it, and before even a single invoice has been paid.
Delayed client payments
Even when the printer delivers on time, the money doesn’t arrive straight away. Corporate and agency clients typically pay on extended terms, 30, 60, or even 90 days after receiving the finished product. For the printer, that means a long wait while their outgoings have already spiked.
Example: Let's say a mid-sized print company wins a £50,000 contract to produce a retailer’s Christmas catalogue. To fulfill the order, they immediately spend £20,000 on paper and ink, and £10,000 on labour, finishing, and packaging. Production runs smoothly, and the catalouges are shipped in early November. But the client’s agreed payment terms are 60 days, meaning the printer won’t see a single pound until January, right after peak season has drained resources further. And the result? Without a financial buffer, the printer is left with £30,000 in costs to cover while still paying rent, salaries, and other operational expenses. Even though the order is profitable on paper, the cash flow gap puts the business at risk.
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What is trade credit, and how does it work for printers?
Trade credit is an arrangement where a supplier provides goods or services to a business, but allows them to pay later, typically within a fixed time frame such as Net 30 (after 30 days), Net 60 (after 60 days), or Net 90 days (after 90 days). For printers, this means they can order large volumes of paper, ink, or finishing supplies from suppliers, use them to complete client projects, and pay once the client's invoice has been settled.
Typical structure of trade credit agreements
- Supplier delivers goods upfront – Paper and ink arrive ready for use.
- Printer receives an invoice – Payment is due in 30, 60, or 90 days, depending on the agreement.
- No immediate cash outlay – The printer gets time to complete the order, invoice the client, and hopefully receive client payment before the supplier invoice comes due.
Why trade credit fits the printing industry
| Reason it fits |
Why trade credit helps |
| Materials-intensive industry |
Paper, ink, and finishing supplies are major cost drivers, often purchased in bulk upfront. |
| Fluctuating order sizes |
Demand can swing from small runs to large campaigns, requiring flexible financing that scales with workload. |
| Strict client payment cycles |
Corporate customers often pay on 30–90 day terms. Trade credit bridges the gap between supplier outflows and client inflows. |
Typical UK B2B payment terms vs. time taken to pay
UK B2B transactions often allow around 41 days to pay, but the actual time taken to pay averages closer to 58 days, a gap that creates real cash-flow pressure for suppliers, including printers. Trade credit helps bridge that gap when material costs hit on day 0 but receipts land much later.
Advantages of trade credit in large printing projects
If a business is handling multiple large orders of something, then trade credit isn't just a nice thing to have; it's absolutely essential. It helps businesses manage cash flow and grow by offering the following:
Improved cash flow
One of the biggest challenges printers face with large-volume orders is paying for materials before receiving client payments. Trade credit eases this pressure by allowing printers to purchase paper, ink, and finishing supplies now and pay later. This creates a much better cash flow cycle, making sure that working capital can also cover wages, rent, and overheads while big jobs are underway.
Ability to accept bigger contracts
Businesses always find it difficult to grow without capital, and trade credit offers a solution to that problem. Without trade credit, some printers might turn down large or high-value contracts because they simply can’t afford the upfront material costs. By spreading payments out over 30, 60, or even 90 days, trade credit makes it possible to accept more ambitious projects. This can open doors to corporate clients, seasonal campaigns, or nationwide marketing runs that grow a printer’s reputation and revenue.
Stronger supplier relationships
Using trade credit responsibly helps printers build long-term trust with suppliers. When invoices are paid on time and agreements are respected, suppliers are more likely to offer favourable terms in the future, such as extended credit lines, better pricing, or priority access to in-demand materials. In a competitive industry like printing, these strong supplier relationships can become a real strategic advantage.
Greater operational flexibility
Large jobs often come with tight deadlines, fluctuating demand, or sudden last-minute changes. Trade credit provides the breathing room to handle these situations confidently. Election season, for example, can force printers into situations in which they have to turn down significant business if they are not able to handle those types of orders. Trade credit allows them to take big orders on at the last minute that would otherwise be completely unfeasible.
SME use of trade credit over time
Trade credit is widely used and relatively stable overall. Since 2018, around a third to two-fifths of SMEs report using supplier credit, with quarter-to-quarter wiggles rather than a straight upward trend. For printers, the takeaway is that trade credit is a mainstream tool, so the question is not whether to use it, but how to manage it well.
Risks and challenges of using trade credit in printing
Trade credit is a necessary tool, but it's not as if there are absolutely no drawbacks. If you are looking at trade credit for your printing business, consider the following:
Client non-payment risk
Perhaps the biggest danger with trade credit is that printers remain responsible for paying their suppliers, even if a client doesn’t pay them on time, or at all. For example, if a corporate client delays settlement of a £40,000 invoice, the printer still needs to pay the supplier for the £15,000 worth of paper and ink already used. This creates a serious cash flow gap. To reduce this risk, printers can carry out credit checks on new clients or request deposits for particularly large jobs. Another option is to take out trade credit insurance that protects against bad debts.
Overextension of credit
Trade credit makes it easier to say “yes” to more projects. But saying yes to too many things at once can lead to classic overextension. A printer that accepts too many jobs on credit might find itself juggling multiple supplier invoices at once, with no guarantee that client payments will arrive before deadlines. This can suddenly turn into unmanageable payables. The best way to avoid this is to track outstanding orders carefully, set internal limits on how much credit to use at once, and maintain open communication with suppliers about realistic payment schedules.
Cash flow mismatch
Even when both suppliers and clients are reliable, mismatched payment terms can cause problems. For example, if a paper supplier requires payment in 30 days, but a client doesn’t pay for 90 days, the printer is left with a 60-day funding gap. This mismatch often forces businesses to dip into reserves or seek additional financing. Printers can manage this challenge by negotiating supplier terms that align more closely with client payment cycles, using fintech tools like iwocaPay to spread costs, or offering early-payment discounts to encourage faster client settlements.
Real-world example
Imagine a printer named Mr. Middlehurst that accepts three overlapping jobs, each worth £50,000, all on 90-day client payment terms. To fulfill them, the business relies on supplier trade credit. If just one client delays their payment, the printer may suddenly owe tens of thousands to suppliers without the cash on hand to cover it. This type of crunch is what causes otherwise healthy businesses to struggle.
Mitigation strategies:
- Run credit checks on clients before extending generous terms.
- Negotiate flexible supplier agreements that reflect real order cycles.
- Forecast weekly cash flow, not just monthly, to spot gaps early.
- Consider trade credit insurance or fintech solutions to smooth over risks.
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Best practices for printers using trade credit for growth
Trade credit is a valuable tool, but it delivers the best results when supported by disciplined financial management. Printers that simply rely on credit without planning may end up overextended, while those that approach it strategically can unlock real growth. By combining supplier trade credit with smart forecasting, client checks, and fintech tools, printing businesses can turn delayed payment terms into a competitive advantage.
Here are some proven tactics that help printers use trade credit safely and effectively:
| Quick win |
What to do |
| Run credit checks |
Assess client reliability before offering extended terms. Use credit agencies, request trade references, or ask for deposits on larger projects to reduce the risk of bad debt. |
| Match terms to order cycles |
Negotiate supplier payment terms that mirror client payment schedules. For example, align Net 60 supplier invoices with Net 60 client receivables to prevent gaps. |
| Forecast weekly |
Build rolling weekly cash flow forecasts instead of only monthly ones. This gives a more accurate picture of timing mismatches and allows proactive action. |
| Use early-pay incentives |
Encourage clients to pay sooner by offering small discounts (e.g., 2% off if paid within 10 days). This sacrifices a little margin but speeds up liquidity during busy periods. |
| Leverage fintech tools |
Use modern solutions like iwocaPay to split supplier invoices into manageable instalments. This reduces reliance on client timelines and gives printers more control over cash flow. |
By following these practices, printers can avoid the pitfalls of overextension and turn trade credit into a reliable growth driver. Instead of being at the mercy of slow-paying clients, they gain the flexibility to take on larger projects with confidence.
