Loans for Plastics and Packaging Companies

From food-safe containers and industrial wrapping to eco-friendly alternatives, plastics and packaging companies are the hidden engine behind every supply chain. But growth in this industry isn’t cheap. As global demand rises, manufacturers must invest in new molds, machines, and logistics to stay competitive.

That’s where loans for plastics and packaging companies play a vital role. With the right funding solution, you can expand operations, meet large orders, and stay ahead of market trends—without draining working capital.

This guide explores the best loan types, how to qualify, and how to use financing to scale your plastics or packaging business.

Why Plastics and Packaging Businesses Need Financing

These companies face unique operational challenges that require significant capital:

• Rising costs of raw materials (like resins and bio-polymers)

• Expensive, specialized manufacturing equipment

• Facility and warehouse expansion needs

• Custom tooling for new packaging types

• Increased demand for sustainable, recyclable materials

Financing allows you to meet demand, modernize equipment, and increase margins without slowing down production.

Best Loans for Plastics and Packaging Manufacturers

Here are the top financing solutions tailored to your industry’s needs:

1. Equipment Financing

• Covers up to 100% of the equipment cost

• Equipment acts as collateral

• Preserves working capital

Best for: Injection molding machines, extruders, conveyors, shredders, thermoformers

2. SBA 504 and 7(a) Loans

• SBA 504: Ideal for large equipment and real estate

• SBA 7(a): Flexible, up to $5 million for working capital or mixed use

• Low rates, long terms

Best for: Facility expansion, machinery upgrades, inventory purchases

3. Working Capital Loans

• Lump-sum loan for short-term expenses

• Used for payroll, raw materials, utilities, or shipping costs

Best for: Managing fluctuating order volumes or supply chain delays

4. Business Lines of Credit

• Revolving credit

• Draw and repay as needed

Best for: Inventory purchases, short-term cash flow needs

5. Invoice Financing

• Get paid upfront on outstanding B2B invoices

• Great for companies with net 30–90 day payment terms

Best for: Bridging the gap between order fulfillment and payment receipt

7 Steps to Secure a Plastics or Packaging Business Loan (Featured Snippet Section)

1. Define the purpose of funding

2. Gather financial statements and business plan

3. Compare loan products and lenders

4. Get equipment quotes or project estimates

5. Apply and provide supporting documents

6. Review terms, rates, and repayment plans

7. Accept funds and invest strategically

Common Use Cases for Plastics and Packaging Loans

🏭 1. Upgrade Manufacturing Equipment

Newer machines offer speed, efficiency, and sustainability benefits.

• Injection and blow molding systems

• Robotic automation arms

• High-efficiency dryers and chillers

• 3D printing systems for prototyping

📦 2. Expand Warehousing and Logistics

Funding can support:

• Facility expansions for more storage space

• Forklifts, pallet systems, and racking upgrades

• Distribution center technology (e.g., barcode scanners, ERP systems)

🌱 3. Invest in Sustainable Packaging Solutions

Consumer and B2B pressure is driving demand for eco-friendly alternatives.

• Compostable and recyclable materials

• Bio-resin research and testing

• Certifications for green packaging claims

💼 4. Boost Working Capital

Use capital to:

• Manage large purchase orders from retailers or CPG companies

• Keep up with fluctuating resin or freight costs

• Hire skilled workers or operators

What Lenders Look For in Plastics and Packaging Loan Applications

🧾 1. Financial Performance

• Minimum $100K–$250K annual revenue

• Positive cash flow or strong order pipeline

• Profit & loss statements and balance sheet

🏭 2. Business History

• At least 6–24 months in operation

• Experience in manufacturing or packaging sectors

💳 3. Credit Profile

• Personal credit score of 620+

• Stronger business credit can unlock better terms

📈 4. Equipment Quotes or Project Projections

• If applying for equipment or expansion funding

• Include vendor quotes, cost estimates, and ROI models

💡 Tip: Having recent customer contracts or long-term supply agreements strengthens your application.

Who Should Consider These Loans?

These funding solutions benefit:

• Plastic product manufacturers (e.g., containers, bottles, caps)

• Contract packagers serving food, beauty, pharma

• Sustainable packaging startups investing in compostable alternatives

• Custom mold and tooling manufacturers

• Recyclers and shredding facilities expanding infrastructure

Real-World Example: Expanding with Equipment Financing

Case Study: EcoSeal Packaging Inc.

• Needed: $300,000 for automated forming and sealing machines

• Loan Type: Equipment financing with 7-year term

• Use: Double production output and reduce labor costs

Results:

• 52% increase in monthly production

• Reduced unit costs by 18%

• Secured 3 new contracts from national retailers

Takeaway: Equipment loans can rapidly increase output, reduce labor dependency, and win new business.

Alternative Funding Sources to Consider

✅ Government Incentives for Manufacturing

• USDA Rural Development Loans (for rural packaging plants)

• State-level clean energy or waste reduction programs

• Export-Import Bank loans for international orders

💡 Green or ESG-Focused Investors

If you offer sustainable or circular packaging, you may qualify for:

• Venture or growth capital from ESG-aligned investors

• Innovation grants from nonprofits or institutions

📦 Vendor Financing

Some equipment manufacturers offer in-house or partner financing—often with deferred payments or low APRs.

Pros and Cons of Financing for Packaging and Plastics Companies

External Authoritative Links

• SBA Loan Programs Overview (opens in new tab)

• U.S. Plastics Pact – Industry Goals (opens in new tab)

• Packaging Digest – Industry News and Trends (opens in new tab)

Conclusion: Funding the Future of Packaging and Plastics

Whether you're increasing production, modernizing machinery, or shifting to sustainable materials, loans for plastics and packaging companies offer the capital needed to compete and grow. With the right lender and funding strategy, you can expand faster, serve larger clients, and future-proof your business in a rapidly changing industry.

Final CTA:

Ready to Invest in Equipment or Expansion?
Explore loan options tailored for plastics and packaging businesses or speak with a funding advisor today to start scaling with confidence.