CASE STUDY: $300,000 Asset Finance to Upgrade Equipment for an Established Print & Design Business
- Commercial Finance Advisor
- Feb 28, 2025
- 3 min read
An established Australian print and design business secured $300,000 in equipment & asset finance to upgrade digital printing, finishing and AI-enabled workflow systems. The asset-backed structure was supported by strong cash flow, proven profitability and lender security over both equipment and business assets.
A print and design services business that has been operating for more than a decade. The business provides digital printing, large-format signage, finishing and design services to a diversified base of corporate, SME and government clients.
The business operates from leased commercial premises and completes the majority of work in-house. It trades five days per week with a stable staffing structure and a high proportion of repeat customers, resulting in predictable baseline revenue.
For the most recent financial year, the business generated approximately $1.0 million in turnover, broadly consistent with prior years. Gross margins averaged around 66%, reflecting a mix of digital print, finishing and value-added design services.
After adjusting for owner wages and non-recurring expenses, the business produced sustainable operating profits in the range of $230,000–$250,000 per annum.
The Business Challenge
Several core digital printing and finishing assets were approaching the later stages of their economic life.
While operational, the existing equipment increasingly constrained production efficiency, increased maintenance downtime and limited the business’s ability to take on more complex or higher-value work.
The owners identified a strategic need to upgrade:
production-grade digital printing capability,
modern finishing and bindery equipment, and
AI-enabled workflow and file-handling systems to reduce manual processing and errors.
The objective was to improve throughput and protect margins rather than pursue aggressive expansion.
The Funding Solution - Asset Finance
A $300,000 equipment finance facility was structured to fund the acquisition of new digital printing, finishing and AI-enabled production equipment.
The facility was established as a chattel mortgage, with the financed equipment used as primary security. The assets were serial-numbered, insured, and retained clear resale value, providing strong collateral coverage for the lender.
The loan term was set at five (5) years, aligning repayments with the expected useful life of the equipment. Annual repayments represented a conservative proportion of operating cash flow, with debt service comfortably supported by historical earnings.
In addition to asset security, the lender relied on:
the business’s long trading history,
consistent profitability above $200,000 per annum,
diversified customer base, and
standard director guarantees.
Where required, the lender also took a general security interest over the business assets and cash flow, providing secondary support without reliance on property security.
Potential Benefits
From a lender perspective, the transaction was supported by:
Strong historical cash flow
Clear productivity benefits from the assets
A conservative loan-to-value ratio based on equipment cost
The equipment upgrade allowed the business to modernise its production capability without drawing on cash reserves or disrupting operations.
The new equipment improved turnaround times, reduced rework and enabled more complex jobs to be completed in-house. AI-enabled workflow tools reduced manual file handling, improved consistency and increased output per employee.
From a credit perspective, the transaction was well supported by both tangible asset security and demonstrated business cash flow, resulting in a balanced, low-risk structure for both borrower and lender.
Conservatively, the business expected the new equipment to support a 5–8% uplift in annual revenue over the following 12–18 months, without increasing headcount.
Why This Works
The equipment finance solution allowed the business to modernise its production capability without drawing down cash reserves or disrupting day-to-day operations. This positioned the business to retain key corporate clients and compete more effectively for higher-value work.
Considering funding for a business or investment?
Explore practical funding options and speak with a specialist who understands commercial and investment finance.
DISCLAIMER: This case study is illustrative only and may be hypothetical or partially fictitious. Details may be modified to preserve confidentiality and should not be relied upon as a representation of any actual client outcome. Finance options are subject to individual lender credit criteria, approval, and applicable terms and conditions. This content is general information only and does not constitute financial, legal, tax, or accounting advice. Our firm provides business consulting and finance broking services only and recommends that readers seek independent professional advice tailored to their specific circumstances.
