September 18, 2024
In an era of economic uncertainty, where interest rates are unpredictable and capital is increasingly scarce, businesses across industries are grappling with a critical question: how do they continue to grow without detrimentally affecting profitability?
For those in the packaging sector, the stakes are exceptionally high. Whether or not to automate can be the difference between thriving and merely surviving.
Yet, automation is expensive. Mid-sized companies, especially manufacturing companies, are staring down the barrel of equipment costs that can easily surpass $500,000. For many, this isn't just a business decision—it's a make-or-break moment.
https://youtu.be/0FMmnvCqbmc?feature=shared
Automation is no longer a luxury; it's a necessity. A study by Deloitte highlights that 53% of companies plan to increase their use of automation in the next two years. However, the initial investment is steep. In the packaging industry, automation is seen as a critical path to efficiency, with companies reporting up to a 30% increase in production speed and a 25% reduction in labour costs within the first year of adopting new technology.
But these benefits come with a hefty price tag. Jonathan Ballard, Director of Business & Market Development at Plan It Packaging and LeafyPack, captures the essence of this dilemma: "Companies that delay automation are not just missing out on efficiency gains—they're also risking their long-term profitability." The numbers back him up, and the reality is stark: businesses that fail to automate are often left behind, unable to compete in a rapidly evolving market.
Despite the clear benefits, the path to automation is riddled with financial hurdles. Traditional processes for working with a few key lenders, which once served as the lifeblood of business financing, have become increasingly cautious. The National Small Business Association's 2023 report reveals that a quarter of small businesses could not secure the necessary funding, citing onerous loan terms as a primary obstacle.
This tightening of the purse strings couldn't come at a worse time. The prospect of navigating complex financing arrangements can feel overwhelming for businesses already stretched thin by rising labour costs and supply chain disruptions. "In today's environment, holding onto cash is more critical than ever," Ballard observes. "If a business depletes its reserves to buy new equipment, it risks its future."
Recognizing these challenges, Plan It Packaging has pioneered a new way to finance automation that bypasses the traditional pitfalls.
Plan It offers financing solutions through an exclusive partnership with Fort Capital through its cloud-based system. This seamless, integrated experience allows businesses to secure the funding they need without leaving Plan It's ecosystem.
The process is refreshingly straightforward. After selecting the necessary equipment, customers are provided with a pre-approved financing plan.
These plans, offered through Fort Capital, boast some of the industry's most competitive terms: sub-5% interest rates, zero down payments in many cases, and payment deferrals for up to six months during equipment production(OAC, Terms apply). The entire transaction can be completed in minutes, all within a secure online portal.
Ballard highlights the impact of this streamlined process: "We've removed the barriers that typically slow down or derail a sale. Customers no longer need to juggle multiple banks or navigate the complexities of loan approvals—they can get everything done in one place, with terms that are often better than what traditional lenders offer."
Traditional financing routes are fraught with challenges that can jeopardize a company's financial health. High interest rates, lengthy approval times, and rigid repayment schedules are the beginning. These obstacles can be insurmountable for businesses operating in today's high-stakes environment.
Many mid-market companies are in a bind, dealing with multiple banks, each with cumbersome requirements. This delays the financing process and increases the likelihood of costly mistakes. "It's not just about securing the funds," Ballard explains. "It's about securing them on terms that work for your business."
The complexity of traditional financing often leads to decision paralysis, where businesses delay critical investments simply because the path forward is unclear. "In this economy, every day counts," Ballard emphasizes. "We're giving our customers a way to move forward without the usual financial headaches."
What sets Plan It Packaging apart is more than just our innovative financing and commitment to exceptional customer service. The financing process is designed to be as smooth and supportive as possible.
Customers are guided by their territory managers, who stay with them through every step, ensuring a seamless experience from start to finish.
This personalized approach builds trust and strengthens relationships, which Ballard considers essential. "We don't just hand over a list of banks and leave our customers to fend for themselves," he says. "We walk them through the entire process, providing support at every turn."
By integrating financing into the sales process, Plan It Packaging isn't just selling equipment—it's offering a comprehensive solution that addresses the real-world challenges its customers face. "Our goal is simple: to make sure our customers succeed," Ballard asserts. "That means giving them the tools—and the access to financial support they need to grow - without unnecessary stress."
The need for innovative, customer-focused financing solutions will only grow as the packaging industry evolves. Plan It Packaging is leading the charge, offering state-of-the-art equipment and the financial flexibility that today's businesses require.
"At the end of the day, it's about more than just machinery," Ballard reflects. "It's about helping our customers continue to build sustainable, profitable businesses. And that starts with ensuring they have the financial resources they need to succeed."
With their pioneering approach to financing, Plan It Packaging is proving that businesses don't have to choose between growth and financial stability—they can have both; in today's challenging economic landscape, that's a message every business owner needs to hear.
Experience the process yourself and contact us now.
Sources:
