How Canadian Printing & Packaging Businesses Can Finance New Presses and Systems

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Canadian printers and packaging converters usually finance new presses and systems through equipment leases, sales-leaseback/refinancing, equipment lines of credit, and asset-based lending, with working capital loans playing a supporting role. In practice, a well-structured lease is almost always the starting point for a new flexo, offset, digital, or finishing line.

Below, we’ll look at how financing actually works in the Canadian printing and packaging sector today, what lenders care about, and how to structure deals so your cash flow survives the next press upgrade.

The capital challenge in Canada’s printing and packaging sector

The core issue is simple: modern presses and systems are expensive and change fast, while margins are tight and work is volatile.

A few Canadian realities:

• The printing manufacturing industry generated about $9.0 billion in revenue in 2023, up from $8.6 billion in 2022.(ISED)
• The broader commercial printing market in Canada is projected to grow from US$31.6 billion in 2024 to US$46.5 billion by 2035, driven by digital and customized print.(Market Research Future)
• In packaging specifically, the packaging printing market is forecast to grow from US$58.7 billion in 2025 to US$86.9 billion by 2031, driven by e-commerce, SKU proliferation, and premium packaging.(Mobility Foresights)
• The industry employs roughly 51,000 workers, highly concentrated in Ontario and Quebec—regions where competition for customers and capital is intense.(occupations.esdc.gc.ca)

At the same time, government and industry data show that Canadian businesses are ramping up capital spending on machinery and equipment—up 9.9% in 2022—and that a large share of that spend is financed through asset-based tools such as leasing and secured loans.(cfla-acfl.ca)

For printers and packaging converters, that usually means:

• Six- or seven-figure price tags for new offset, flexo, or digital presses
• Automation add-ons like inline inspection, conveyors, palletizers, and MIS/workflow software
• Long lead times—BDC points out that large manufacturing equipment often takes 6–12 months from order to installation, so you need financing lined up early.(BDC.ca)

It’s no surprise that industry surveys show over 80% of printers expect to invest in new equipment, hardware, or software in the next 12–18 months, with productivity and automation as the main drivers.(DynamicsPrint®)

So the real question isn’t if you’ll finance, but how to finance smartly.

Why leasing is usually the best fit for presses and systems

For most printing and packaging businesses, equipment leasing is the workhorse. It lines up with how assets behave in your world: high upfront cost, long productive life, and ongoing technology change.

You can see how Mehmi approaches this at a high level here: Equipment Financing overview and specifically under Equipment Leases.

Leasing works particularly well for:

• Offset and sheetfed presses
• Flexo and gravure packaging presses
• Digital presses and inkjet lines
• Die-cutters, folder-gluers, laminators, coaters
• Inline inspection and colour management systems
• Material handling and finishing systems that support the press

How a lease typically works for printing/packaging gear

In practice, a new press deal looks something like this:

1. You select your press and configuration
   • E.g., 8-colour flexo press with inline cold foil and inspection, or a B2 digital press with finishing line.
2. Mehmi pays the OEM or dealer
   • New or used, direct from manufacturer or through a vendor—most of this falls under Mehmi’s Eligible Equipment.
3. You lease the equipment back over 3–7 years
   • Terms commonly range 36–84 months, sometimes longer for very heavy platforms.
4. You decide what to do at end of term
   • Buy, renew, or upgrade, depending on the lease type and the press’s condition.

Because the press is the main collateral, approval depends heavily on the asset quality and your cash flow, not just on pristine credit history. That’s a big advantage compared to unsecured loans.

Common lease structures for presses and systems

Leases for printing and packaging gear are usually structured in one of three ways:

FMV (fair market value) / operating-style lease

• Lowest monthly payment.
• At end of term, you can buy at fair market value, upgrade, or return.
• Good for rapidly evolving tech, like high-end digital presses or colour inspection systems.

Fixed-percentage (e.g., 10%) buyout lease

• Mid-range payments.
• You know your end-of-term buyout (e.g., 10% of original cost).
• Useful when you expect to keep the press, but want some residual flexibility.

$1 buyout / ownership-style lease

• Highest payment, but you effectively own the asset at the end for a token amount.
• Works best for robust, long-life equipment like die-cutters, folder-gluers, and certain sheetfed presses.

A Mehmi advisor can walk you through each scenario using their online Calculator so you can see exactly how term and residual choices affect monthly and total cost.

Matching structure to reality in your plant

The biggest mistake I see in this sector is trying to finance everything on the same template. Realistically:

• Digital presses and inspection systems often suit FMV or higher-residual structures—you’ll likely upgrade before the iron is worn out.
• Converting lines, conveyors, and finishing gear usually belong in $1 or low-residual leases—you’ll run them until the frame rusts.
• If you’re adding a second or third line to capture a long-term contract, you might want a longer term to smooth cash flow.

Leasing gives you that flexibility, and it’s exactly the kind of structure Mehmi focuses on across Equipment Leases.

Using refinancing and sales-leaseback to unlock trapped equity

If you’ve been in business a while, there’s a good chance you’re sitting on paid-off presses or finishing lines that still have real value. A refinancing or sales-leaseback lets you turn that idle equity into working capital without shutting down the line.

Mehmi structures these deals under Refinancing or Sales Leaseback.

Here’s how it works:

1. Mehmi purchases your existing press or system at an agreed value.
2. You immediately lease it back over a new term.
3. You keep running the machine as usual.
4. You receive a cash injection you can use for:
   • Deposits on a new press
   • Automation upgrades (e.g., MIS, plate mounting, conveyors)
   • Plant layout changes or mezzanines
   • Paying down expensive short-term debt

Sales-leaseback is especially helpful when:

• You paid cash for earlier equipment during a strong year.
• You’re trying to clean up expensive lines of credit or credit card debt.
• You want to fund a technology upgrade (not just more of the same).

The risks: you’re re-leveraging equipment that’s closer to the end of its life. A good advisor will be honest if a sales-leaseback makes sense—or if you’d be better off putting those dollars into new iron instead.

Equipment lines of credit and asset-based lending for multi-press plants

Once you’re running multiple presses and converting lines, one-off leases can get messy. For mid-size and larger plants, equipment lines of credit and asset-based lending (ABL) can be cleaner.

The Canadian Finance & Leasing Association estimates that asset-based finance (leases, secured loans, LOCs) financed about 36–40% of all equipment and commercial vehicle spending in recent years, with banks, independent finance companies, and captive manufacturers all playing a role.(cfla-acfl.ca)

Mehmi builds on that ecosystem with:

Equipment line of credit

An Equipment Line of Credit gives you a pre-approved bucket of capital just for equipment.

You:

• Draw on it as you order presses, rewinders, inspection systems, etc.
• Convert each draw into its own amortization schedule.
• Avoid restarting the full underwriting process each time.

This is ideal when you:

• Have a multi-year automation roadmap.
• Expect to add finishing or inspection capacity each year.
• Want negotiating power with OEMs (you know financing is ready).

Asset-based lending (ABL) on your equipment base

For bigger balance sheets, Asset Based Lending ties your equipment fleet and sometimes receivables into one borrowing base.

The upside:

• Higher potential limits than standalone leases.
• Ability to plug in multiple facilities or divisions.
• Flexibility to finance systems, not just individual presses (e.g., press + conveyor + palletizer + WIP racking as one project).

The trade-off:

• More reporting and covenants, and usually best once you’ve hit a certain scale.

For fast-growing packaging converters chasing big CPG or e-commerce contracts, ABL is often the only structure that doesn’t buckle under growth.

When business loans and working capital products make sense (and when they don’t)

Leasing should cover most of the hardware—presses, converting lines, inspection, material handling. But you still have softer costs around a project:

• Electrical and HVAC upgrades
• Plant layout changes and construction
• Software integration, colour management, and training
• Hiring and carrying labour while you ramp new capacity

That’s where business loans come in. Mehmi offers several on its Business Loans overview.

Working capital loans and lines of credit

• A Working Capital Loan can fund one-time project costs and ramp-up expenses.
• A Line of Credit covers ongoing swings in receivables and inventory.

BDC notes that some equipment loan products can finance up to 125% of the equipment cost, including installation and training, which shows how tightly equipment and working capital needs are linked.(BDC.ca)

In Mehmi’s world, the practical rule is:

Lease anything with a serial number; use loans and lines for everything else.

Other tools: secured, unsecured, and factoring

Depending on your situation, you might also use:

• A Secured Loan against broader collateral for plant-wide upgrades.
• An Unsecured Loan for smaller projects where you don’t want to pledge specific assets.
• Invoice or Freight Factoring if you’re shipping large volumes and dealing with slow-paying enterprise customers.

These tools support an equipment financing strategy—they shouldn’t replace it.

What lenders actually look at in printing & packaging deals

Whether you’re buying a narrow-web flexo line or a sheetfed offset with LED-UV, underwriters ask the same core questions. Canadian lenders like BDC call this the five Cs of credit (character, capacity, capital, collateral, conditions).(Mobility Foresights)

Specialist equipment funders like Mehmi weigh those Cs through a manufacturing lens:

1. Your business model and customers

• What segments do you serve (labels, folding carton, flexible, commercial, wide-format)?
• How concentrated is your customer base?
• Are you in long-term programs, or mostly job-by-job?

Articles on the Canadian printing industry note that many printers are moving toward workflow automation and value-added packaging to stay competitive.(Publications.gc.ca) Lenders want to see that your investment aligns with that reality, not fighting it.

2. The equipment and project

• Exactly what’s being purchased—press model, width, speeds, options.
• Whether it’s new or used; if used, hours/impressions and condition.
• How it integrates into your existing workflow and material streams.

This is where Mehmi’s sector experience matters. Their Industries overview reflects that they’ve seen enough plants to know what’s realistic.

3. Financial performance and cash flow

• Recent financial statements and/or tax returns.
• Bank statements showing cash flow patterns.
• Current debt and lease obligations.

StatCan data show manufacturing industries running around 78% capacity utilization, which means there’s room to take on more work without necessarily doubling overhead.(Reuters) But lenders want to see how your specific plant will turn new capacity into profit.

4. Security and structure

• Primary security is usually the press or system itself.
• Personal or corporate guarantees may be required, especially for smaller firms.
• Structure (term, residual, down payment) is tuned based on risk.

CFLA’s market overview shows that leasing made up ~40% of the $38.8B equipment and commercial vehicle finance market in 2021, with secured loans and lines of credit making up most of the rest.(World Leasing Yearbook) That’s the ecosystem your deal lives in.

5. Execution risk

For large, staged installs, lenders also care about:

• OEM track record and service presence in Canada.
• Site readiness (power, floor loading, logistics).
• Detailed project timelines and contingencies.

This is where combining equipment finance with a good vendor relationship (often via a structured Vendor Program) can make or break the file.

Comparing your main financing options for presses and systems

Here’s a quick side-by-side view of how options stack up for a typical Canadian printing or packaging investment.

Step-by-step game plan for your next press or system

Here’s a practical roadmap you can follow before talking to any lender.

1. Map your production and bottlenecks

Start with operations, not brochures. Where are you constrained today?

• Make-ready times?
• Substrate range?
• Colour consistency?
• Finishing throughput?

This mirrors BDC’s advice to assess your business reality and do a cost-benefit analysis before buying equipment.(BDC.ca)

2. Build a one-page “capital story”

Outline:

• What you’re buying (press, line, software, automation).
• Why now (lost orders, capacity constraints, new contracts).
• How it will change key metrics (throughput, margins, makeready, waste).

Lenders respond much better when they see a clear story instead of just an invoice.

3. Decide what belongs where

Use a simple rule of thumb:

• Lease: presses, converting, inspection, material handling → Equipment Leases.
• Refinance: older but solid presses where you want to unlock cash → Refinancing or Sales Leaseback.
• Facility: multi-year plans → Equipment Line of Credit or Asset Based Lending.
• Working capital: fit-out, ramp-up, marketing → Working Capital Loan and Line of Credit.

4. Get your documents in order

Before you apply, pull together:

• Recent year-end financials and interim statements (or tax returns).
• 3–6 months of business bank statements.
• A current equipment list (age, model, condition).
• Vendor quotes, including install and training.

Having this ready can shave weeks off an approval.

5. Stress-test the numbers

Use Mehmi’s Calculator to model:

• Different terms (e.g., 60 vs 84 months).
• Different residuals or buyouts.
• The impact of putting more or less down.

Make sure the payment still works in a soft quarter, not just in your best month ever.

6. Loop in the right partners early

• Speak to vendors that understand financing and can work under a Vendor Program.
• Talk to a Mehmi advisor early so the structure supports your operational plan.

You can connect with the team via Contact Us, and you can get a feel for their style and perspectives on the Homepage and About Us.

Case study: Financing a new flexo press and automation for a packaging converter

Background

A mid-size packaging printer in Southern Ontario specialized in short-run labels and folding carton.

• 70 employees, two older narrow-web flexo lines, and a small digital press
• Strong demand from food and personal care brands, but constant overtime
• Growing customer expectations on colour consistency and lead times

Management wanted to:

• Install a new 10-colour flexo press with inline cold foil and inspection, and
• Upgrade finishing with a high-speed folder-gluer and semi-automatic palletizing

Total project cost (press + finishing + install + training + minor construction): $5.2M.

Challenges

• The company still carried debt from a previous expansion.
• They needed to avoid blowing up cash flow during installation downtime.
• Their bank liked the business but didn’t want to take the whole ticket on balance sheet.

Financing structure with Mehmi

Working with a Mehmi advisor, the project was broken into logical pieces:

1. Core press & converting under an equipment lease
   • The press and main finishing line were financed via a 7-year Equipment Lease.
   • Structure: moderate residual at end of term to keep payments manageable, with a planned upgrade path at year 7–8.
2. Existing flexo lines refinanced
   • The two older presses were refinanced using a Refinancing or Sales Leaseback structure.
   • This freed up cash to fund electrical upgrades and mezzanine work—without touching operating lines.
3. Working capital buffer
   • A 4-year Working Capital Loan covered labour during training and a deliberate ramp-up period.
4. Future-proofing via equipment line of credit
   • Mehmi also approved a modest Equipment Line of Credit for future inspection and automation add-ons, so the company wouldn’t be starting from scratch on the next project.

Outcomes

Within 12–18 months of the install:

• Throughput on key SKUs increased by 30–40%, with less overtime.
• Makeready waste dropped significantly thanks to modern registration and colour control.
• The mix of lease payments and loan amortization fit within the company’s existing cash flow, even through a soft quarter.
• With strong payment history on the new structures, the business was better positioned for the next phase of digital investment.

The key wasn’t chasing the lowest possible rate. It was designing a financing stack—leases, refinancing, and working capital—that matched the realities of a Canadian packaging plant in 2025.

FAQ: Financing presses and packaging systems in Canada

1. What’s usually the best way to finance a new press in Canada?

For most printers and packaging converters, the best starting point is an equipment lease with a specialist funder. Leasing aligns payments with the productive life of the press, uses the press as collateral, and keeps your bank line free. Mehmi lays out its approach on Equipment Financing and Equipment Leases.

2. Can I finance used presses and finishing systems, or only brand-new gear?

You can finance both. Many Canadian plants upgrade by buying late-model used presses from other printers or OEM remarketing programs. As long as the equipment is on the Eligible Equipment list and in good condition, lenders like Mehmi can usually structure a lease or asset-based facility—sometimes with slightly different terms than for brand-new machines.

3. How much down payment do printing and packaging businesses usually need?

It varies with credit strength, deal size, and asset type. Stronger borrowers sometimes qualify for low or zero down; others might put 10–20% in to improve approvals and pricing. BDC’s equipment financing materials highlight that some programs can cover more than 100% of the purchase price, including installation and training, which shows how flexible structures can be.(BDC.ca) A Mehmi advisor can model different down-payment and residual scenarios using the Calculator.

4. Should I use my bank operating line to pay for presses and systems?

Generally, no. Your bank line is best kept for working capital—payroll, paper and board, inks, utilities—not for long-term assets. Presses, converting lines, and inspection systems usually belong in equipment leases or asset-based facilities, leaving your Line of Credit available for day-to-day operations.

5. Can I roll software, installation, and training into the same financing as the press?

Often, yes. Many lenders—including BDC and private equipment funders—allow financing to cover transport, installation, and training costs, sometimes up to 125% of the equipment price.(BDC.ca) Mehmi will either include these “soft costs” in the main lease or pair the lease with a Working Capital Loan, depending on size and structure.

6. How do I know if I should use a simple lease or an asset-based facility?

As a rough guide:

• Single press or a few finishing pieces? → A straightforward Equipment Lease is usually enough.
• Ongoing multi-year upgrades or multiple plants? → A dedicated Equipment Line of Credit or Asset Based Lending facility may be more efficient.

A Mehmi advisor will look at your roadmap, not just this year’s project, and suggest a structure that can grow with you. You can start that conversation via Contact Us, and explore related scenarios on the Blog and FAQ.

Internal links used

1. https://www.mehmigroup.com/services/equipment-financing
2. https://www.mehmigroup.com/services/equipment-financing/equipment-leases
3. https://www.mehmigroup.com/eligible-equipment
4. https://www.mehmigroup.com/services/equipment-financing/refinancing-sales-leaseback
5. https://www.mehmigroup.com/services/equipment-financing/equipment-line-of-credit
6. https://www.mehmigroup.com/services/equipment-financing/asset-based-lending
7. https://www.mehmigroup.com/services/business-loans
8. https://www.mehmigroup.com/services/business-loans/working-capital-loan
9. https://www.mehmigroup.com/services/business-loans/line-of-credit
10. https://www.mehmigroup.com/services/business-loans/secured-loan
11. https://www.mehmigroup.com/services/business-loans/unsecured-loan
12. https://www.mehmigroup.com/services/business-loans/invoice-freight-factoring
13. https://www.mehmigroup.com/services/vendor-program
14. https://www.mehmigroup.com/industries
15. https://www.mehmigroup.com/calculator
16. https://www.mehmigroup.com/contact-us
17. https://www.mehmigroup.com
18. https://www.mehmigroup.com/about-us
19. https://www.mehmigroup.com/blog
20. https://www.mehmigroup.com/faq

External citations used

1. Innovation, Science and Economic Development Canada – Canadian Industry Statistics, Printing (NAICS 32311): revenue of $9.0B in 2023. (ISED)
2. Market Research Future – Canada Commercial Printing Market forecast: US$31.6B in 2024 to US$46.5B by 2035. (Market Research Future)
3. Mobility Foresights – Canada Packaging Printing Market forecast: US$58.7B in 2025 to US$86.9B by 2031, 6.8% CAGR. (Mobility Foresights)
4. Employment and Social Development Canada – COPS industry profile: about 51,000 workers in printing in 2023, concentrated in Ontario and Quebec. (occupations.esdc.gc.ca)
5. CFLA Canadian Market Overview and World Leasing Yearbook – asset-based finance penetration: leasing ~36–40% of equipment and commercial vehicle spending; breakdown of leases, secured loans, lines of credit, and financing sources. (cfla-acfl.ca)
6. CFLA Annual Report 2024 – machinery and equipment spending up 9.9% in 2022; continued growth in financing of new equipment. (cfla-acfl.ca)
7. BDC – “Equipment financing 101: Everything you need to know” and “Equipment loan” pages: list of financeable equipment, ability to finance up to 125% of purchase price incl. related costs. (BDC.ca)
8. BDC – “Manufacturing equipment: 6 steps to plan your purchase” and “9 tips for making the right equipment purchase”: emphasis on lead times, assessing needs, and cost-benefit analysis. (BDC.ca)
9. Canadian Printing industry reports and Canadian Packaging magazine – commentary on capital-intensive nature of packaging production and investments in workflow automation and process improvements. (Publications.gc.ca)
10. Reuters / Statistics Canada – industrial capacity utilization: manufacturing around 78.2% capacity use in Q4 2024. (Reuters)

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