In the competitive world of packaged foods, beverages, and consumer goods, scaling production is key to capturing market share and boosting profits. But expanding your production line—whether that means upgrading machinery, adding shifts, or leasing warehouse space—requires significant capital.
That’s where loans for food and beverage manufacturers come into play. With the right financing strategy, you can grow efficiently, meet rising demand, and compete at scale.
In this in-depth guide, we’ll explore the best loan options, what lenders look for, and how to strategically invest in expanding your production line.
Food and beverage manufacturing is capital-intensive. As demand grows, manufacturers must scale quickly without sacrificing product quality or compliance. Common costs include:
Equipment purchases and upgrades
Facility expansion or additional warehouse space
Hiring and training line workers or QA staff
Packaging and labeling enhancements
Certifications, inspections, and regulatory compliance
Financing ensures you can meet volume demand while maintaining safety, quality, and efficiency.
Let’s explore financing options designed for scalable manufacturing growth:
Up to $5.5 million
Long-term, low-interest loans for real estate and equipment
10–25 year repayment terms
Best for: Facility expansion, equipment upgrades
Up to $5 million in flexible funding
Can be used for working capital, equipment, or payroll
Competitive interest rates and terms
Best for: Mixed-use capital (staff, equipment, marketing)
Secured by the equipment being purchased
Fast approval and affordable payments
Best for: Conveyor belts, packaging systems, mixing tanks, bottling lines
Flexible, revolving credit
Pay interest only on what you use
Best for: Managing inventory surges or cash flow gaps during seasonal demand
Borrow against outstanding invoices or incoming POs
Useful for B2B manufacturers selling to retailers or distributors
Best for: Bridging payment delays from wholesalers or retail partners
Determine capital needs and growth goals
Identify the right loan product
Prepare business financials and projections
Gather equipment quotes or facility estimates
Apply with preferred lender or SBA partner
Review loan terms and disbursement timeline
Implement upgrades and track ROI
Here are practical, ROI-focused ways to use your funding:
Invest in:
Filling, bottling, and capping machines
Conveyor systems and robotics
Commercial ovens, fermentation tanks, or freeze dryers
Automation improves speed, consistency, and unit cost.
Whether leasing adjacent space or building out, expansion supports higher output.
Add refrigerated storage or climate-controlled zones
Install loading docks for better logistics
Separate production lines for allergen management
Meet higher volume with skilled labor:
Line workers and supervisors
Sanitation and QA teams
Food safety or packaging specialists
Use capital to cover onboarding, wages, and retention bonuses.
Modernize packaging lines for:
Resealable or sustainable materials
Compliance with new labeling standards
Branding upgrades for retail visibility
Invest in:
Food safety certifications (e.g., SQF, BRC, HACCP)
Inspection compliance
Traceability and lot-tracking systems
These upgrades help you land contracts with grocery chains and distributors.
Steady revenue with growth potential
Gross margin and cost of goods sold (COGS) metrics
Cash flow statements showing repayment ability
Minimum 6–24 months in business preferred
Established track record in food or beverage sector
620+ personal credit score (higher = better rates)
Business credit score (if available)
Explain how funds will increase output or reduce costs
Include vendor quotes and project timelines
💡 Tip: Have a well-documented HACCP plan and safety procedures to show operational stability.
Loans are ideal for:
Small-to-mid-sized manufacturers scaling from local to regional distribution
Private-label producers expanding SKUs or contracts
Specialty food makers (e.g., gluten-free, vegan, organic) expanding production
Cold beverage and craft drink brands upgrading bottling and refrigeration systems
Case Study: Urban Roots Kombucha Co.
Needed: $180,000 for a new bottling and labeling system
Loan Type: Equipment financing + SBA 7(a)
Result:
Production capacity increased 4x
Reduced packaging costs by 28%
Secured two major regional distributors within 6 months
Lesson: The right equipment investment can multiply output and unlock retail partnerships.
Explore:
R&D tax credits
Energy-efficient equipment deductions
USDA Value-Added Producer Grants (especially for agricultural processors)
Platforms like Republic, Kickstarter, or IFundWomen support mission-driven brands.
Launch new products or facilities
Build pre-sales and community support
Once you're scaling nationally:
Attract growth capital through investors or CPG accelerators
Look for non-dilutive investment through co-packing or licensing deals
| Pros | Cons |
|---|---|
| Access capital for fast expansion | Interest costs over time |
| Improve output and operational efficiency | Application process may be complex |
| Enhance food safety and compliance | Some loans require collateral |
| Attract larger clients with professional upgrades | Overleveraging can affect long-term cash flow |
U.S. Small Business Administration – Loans (opens in new tab)
USDA Value-Added Producer Grants (opens in new tab)
FDA Food Safety Modernization Act (FSMA) (opens in new tab)
Loans for food and beverage manufacturers are more than just capital—they’re growth accelerators. With the right funding, you can scale your production line, meet growing demand, and land major partnerships. From bottling systems to compliance upgrades, smart investments backed by financing help transform your factory floor into a scalable, profitable operation.
Ready to Expand Your Production Line?
Compare loan options today or connect with our funding advisors to build a custom financing plan for your food or beverage business.