Contract Packaging & Co-Packers

Contract packaging businesses live and die by the account. Land a new brand client, and you need the line running before the contract start date. Lose a client, and you have dedicated equipment sitting idle while you hunt the next opportunity. The financing structure has to be flexible enough for that reality, and a lender that requires six months of committee review is not a useful partner in this business.

We finance equipment for contract packagers and co-manufacturers across every format: flexible pouches, rigid containers, cartons, shrink bundles, and trays. Our clients range from single-line shops serving regional food brands to multi-line co-packers running dozens of SKUs for national retail accounts. The common thread is that the equipment investment is driven by a specific customer commitment, and the financing needs to move on that customer's schedule.

We fund from $50,000 into the seven figures, consider new and used assets, and work with operators who have B/C credit profiles when the business case is clear. Application-only decisions are available for transactions up to roughly $400,000, and most credits fund within one to two weeks of approval.

Equipment Common to Co-Packer Operations

Flexible Packaging Systems

Form-fill-seal machines are the workhorses of flexible packaging. Vertical form-fill-seal systems handle standup pouches, pillow bags, and gusseted formats across snack, produce, pet food, and dry grocery categories. Horizontal systems run candy bars, protein bars, and portion-controlled items at high speeds. We finance Form-Fill-Seal (FFS) Machine Financing across all formats, and we understand the residual value differences between commodity VFFS units and high-speed servo machines.

Flow Wrapping and Cartoning

Many co-packers run Flow Wrapper Financing for individually wrapped products and Cartoning Machine Financing for retail-ready folding carton formats. These assets hold value well and are easy to move between products with tooling changes, which makes them solid collateral for equipment financing.

Labeling and Coding

A co-packer applying client labels to finished goods needs reliable, high-accuracy label application. Pressure-sensitive applicators, sleeve applicators, and print-and-apply systems all qualify for standalone financing. Labeling machine financing is often a straightforward transaction even when the machine is used or the business is relatively new.

End-of-Line Systems

Case packers, case sealers, and palletizers determine how fast a co-packer can clear finished goods to the dock. A robotic case packer that runs three times faster than the manual alternative justifies its cost quickly on a high-volume account. We finance Case Packer Financing and palletizing systems regularly and understand how to structure these assets for businesses that cycle accounts over two to three year horizons.

Credit and Documentation for Co-Packer Transactions

Contract packaging businesses sometimes carry credit profiles that reflect the volatility of the account base: a good year followed by a flat year followed by a strong year. We look at the trend and the current book of business rather than focusing narrowly on the most recent twelve months. If you have a signed contract or letter of intent from the customer driving the equipment purchase, that document carries weight in our underwriting even when the credit file is not spotless.

For transactions under $400,000, we work on an application-only basis for qualified applicants. Above that, three months of business bank statements is the standard request. Full tax returns and financial statements become relevant for larger or more complex credits, but we try to keep documentation requests proportional to deal size.

New business entities that have a signed co-manufacturing agreement and are purchasing equipment to fulfill it have a clear path through our process. We review startup financing for co-packers through our Startup and New-Business Production Line Equipment Financing program, which applies to businesses under two years old or those launching a dedicated line for a specific account.

Refinancing and Sale-Leaseback for Established Co-Packers

Co-packers who have been running for several years often have significant equity locked in paid-off packaging equipment. A Sale-Leaseback turns that equity into working capital without selling the equipment or disrupting production. We purchase the equipment at appraised value and lease it back immediately, so your line keeps running and cash goes to the bank account instead.

Operators who financed equipment three or four years ago at higher rates may benefit from an Equipment Refinancing transaction that lowers the monthly payment or extends the remaining term. If you are carrying equipment loans from multiple lenders, consolidating them into a single payment can simplify cash management and sometimes reduce the blended rate.

The key question is what the equity is worth relative to what the business needs. We size sale-leaseback transactions based on current equipment value, not the original purchase price, so the proceeds reflect what the asset would actually bring in a secondary market today.

The Co-Packer Situations We Handle Best

Some transactions come to us because they are straightforward: an established co-packer with a long track record buying a new machine on a fixed-rate loan. Those are easy. But the situations where we add the most value are the ones with a complication attached.

A co-packer that won a large national account and needs to stand up a dedicated line in 90 days is a situation built for our process. A shop that lost a key client and wants to refinance existing equipment to buy runway while they rebuild the book is equally workable. A startup co-packer with a signed contract but no credit history is a situation we evaluate on the merits of the asset and the customer relationship.

Operators in the Food & Beverage Manufacturing sector that are transitioning from owned-brand to co-manufacturing, or adding co-man capacity alongside their own production, are another common client type. We understand the nuances of equipment that serves both a proprietary line and a contract customer.

If your situation does not fit a standard box, tell us what is actually happening. A line that is five years old, financed through a vendor program, partially paid off, and now being repurposed for a new account is something we can work with, even if no single standard product fits the whole picture.

Talk to Us About Your Next Line or Account

Whether you are bidding on an account that requires new equipment or refinancing a line you already own, we can structure something that works. Send us the equipment details and your timeline and we will respond with options the same day.