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Purchasing packaging machines can cause financial strain on your business. It is a large upfront investment. However, there are a number of packaging financing choices that can lessen the initial outlay and increase accessibility to updating your packaging line.
Government grants are one possible funding source. A range of subsidies are available from the UK government to manufacturers who want to improve, grow, or expand their business. These awards are available to established, trading manufacturers in the United Kingdom and can range in value from £10k to over £1 million. Among the particular grant opportunities are:
It’s advisable to speak with a grant-finding agency like 123 incentives to find out what your company qualifies for. They can evaluate your idea promptly and list any funding available; they can even find opportunities that you would not have thought of on your own.
The U.K government also offers financial loans for packaging machine investments in the baking industry through the Duplex Investment Fund.
The Duplex Investment Fund aims to give financial support to businesses aiming to develop by investing in capital equipment. they recently approved a family-owned baking firm a loan and match of £150,000. you can read more here in this article “Handmade Speciality Products secures £150k loan for new flapjack machine” The grant may cover up to 40% of the overall cost of the capital investment, and the loan may need to be repaid over the course of 48 to 60 months.
The government offers tax breaks for companies that purchase equipment in addition to subsidies and loans. The Annual Investment Allowance (AIA), which enables businesses to deduct up to £1 million in eligible expenses from their taxable profits, is one such incentive.This implies that, assuming a 19% corporate tax rate, you can effectively save your tax payment by £190,000 if your company buys packing equipment for £1 million. Packaging machinery is among the many assets covered by the AIA, which is applicable and can be claimed in the year of purchase. Businesses modernising their packaging facilities might see a considerable increase in cash flow and return on investment thanks to this expedited tax benefit.
Upgrading your packaging machinery is an important investment in the growth and competitiveness of your business. While the upfront costs can be daunting, several financing options are available to help make these upgrades more accessible. By exploring government grants, business loans, and tax deductions like the Annual Investment Allowance, you can find the right solution to fit your budget and needs. At Record Packaging Systems, we’re committed to helping our customers find the most cost-effective way to acquire the packaging machinery they need to succeed.