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.
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.
Here are the top financing solutions tailored to your industry’s needs:
Covers up to 100% of the equipment cost
Equipment acts as collateral
Preserves working capital
Best for: Injection molding machines, extruders, conveyors, shredders, thermoformers
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
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
Draw and repay as needed
Best for: Inventory purchases, short-term cash flow needs
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
Define the purpose of funding
Gather financial statements and business plan
Compare loan products and lenders
Get equipment quotes or project estimates
Apply and provide supporting documents
Review terms, rates, and repayment plans
Accept funds and invest strategically
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
Funding can support:
Facility expansions for more storage space
Forklifts, pallet systems, and racking upgrades
Distribution center technology (e.g., barcode scanners, ERP systems)
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
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
Minimum $100K–$250K annual revenue
Positive cash flow or strong order pipeline
Profit & loss statements and balance sheet
At least 6–24 months in operation
Experience in manufacturing or packaging sectors
Personal credit score of 620+
Stronger business credit can unlock better terms
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.
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
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.
USDA Rural Development Loans (for rural packaging plants)
State-level clean energy or waste reduction programs
Export-Import Bank loans for international orders
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
Some equipment manufacturers offer in-house or partner financing—often with deferred payments or low APRs.
| Pros | Cons |
|---|---|
| Scale quickly to meet large orders | Requires regular repayments |
| Acquire modern equipment without upfront cost | May need collateral or personal guarantee |
| Stay competitive in a margin-sensitive industry | Interest adds to long-term cost |
| Improve efficiency and meet sustainability targets | Loan approval can take 1–4 weeks |
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)
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.
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.