Business financing for the wood industry

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Voici la traduction en anglais :










Financing the Wood Industry with PrestaFlex





Forestry, sawmills, timber trading, carpentry/joinery/cabinetmaking, panels & derivatives, furniture, pellets/biomass





The wood industry is characterized by strong price cycles, heavy inventories (logs, sawn timber, semi-finished wood) with long drying periods, significant industrial capex (saws, kilns, extraction, CNC) and certification requirements (FSC/PEFC).
PrestaFlex structures solutions from CHF 100,000 to CHF 60 million to secure supply, smooth cash flow, and modernize production facilities.










Your needs, our solutions





A. Cash flow, purchasing & seasonality





Revolving line / seasonal credit









Inventory financing (ABL)









Factoring (B2B, construction, trading, DIY chains)









Reverse factoring (Supply Chain Finance)









VAT bridge / import duties financing














B. Capex & industrial modernization





Industrial leasing / finance lease









Capex loan / Term loan









Energy & sustainability (green loan/ESCO)














C. Commercial development & international growth





Innovation credit / new products (CLT, timber frames, eco finishes, treatments)









Trade finance import/export (LC, SBLC, guarantees)









E-commerce/D2C financing (kits, furniture, made-to-measure joinery)














D. External growth & capital transactions





Unitranche / mezzanine









LBO / acquisitions














Typical benchmarks (wood industry)














Quick case studies





Sawmill & drying — high season









Industrial joinery — CNC modernization









CLT producer — expansion & energy









Timber trading — client WCR stabilization for large projects














PrestaFlex process (fast & pragmatic)














Why PrestaFlex for the wood industry














Book an initial meeting





Tell us about your stock profile (logs/boards/finished goods), client payment terms and key capex priorities: we will provide you with a tailored, modular financing structure aligned with your industrial plan and seasonality.





Contact PrestaFlex now:









An article by Munur Aslan, Director of PrestaFlex







  











 

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  1. Blog

Voici la traduction en anglais :

Financing the Wood Industry with PrestaFlex

Forestry, sawmills, timber trading, carpentry/joinery/cabinetmaking, panels & derivatives, furniture, pellets/biomass

The wood industry is characterized by strong price cycles, heavy inventories (logs, sawn timber, semi-finished wood) with long drying periods, significant industrial capex (saws, kilns, extraction, CNC) and certification requirements (FSC/PEFC).
PrestaFlex structures solutions from CHF 100,000 to CHF 60 million to secure supply, smooth cash flow, and modernize production facilities.

Your needs, our solutions

A. Cash flow, purchasing & seasonality

Revolving line / seasonal credit

  • Tickets: CHF 250k–8m · Tenor: 12–36 months
  • Uses: log purchases, stock building before frost/high season, advances during drying.

Inventory financing (ABL)

  • Tickets: CHF 500k–20m
  • Typical advances (subject to eligibility & turnover):
    • Logs: 40–60 %
    • Boards/timber under drying (WIP): 40–65 %
    • Finished goods (glulam, CLT, panels, joinery products): 50–70 %
  • Plus: stock audits, moisture/quality monitoring, haircuts for obsolescence/slow species.

Factoring (B2B, construction, trading, DIY chains)

  • Lines: CHF 300k–25m · Advance: 80–90 % net · Typical DSO: 30–75 days
  • Options: credit insurance, multi-currency, buyer limits.

Reverse factoring (Supply Chain Finance)

  • Capacity: CHF 1–30m · Benefit: accelerated payments to sawmills/suppliers while extending your DPO (60–120 days).

VAT bridge / import duties financing

  • Tickets: CHF 100k–7m · Tenor: 1–6 months (peaks of specific wood imports).

B. Capex & industrial modernization

Industrial leasing / finance lease

  • Tickets: CHF 300k–12m · Tenor: 3–7 years · LTV: 80–100 % net
  • Equipment: sawing lines, kilns, ATEX extraction/filtration systems, 5-axis CNC centers, edgebanders, presses, glulam/CLT lines, nailing/assembly robots.

Capex loan / Term loan

  • Tickets: CHF 1–25m · Tenor: 5–10 years
  • Projects: workshop expansion, energy modernization, ERP/traceability, automation for heavy timber handling.

Energy & sustainability (green loan/ESCO)

  • Tickets: CHF 250k–6m · Payback: 3–6 years
  • Uses: biomass boilers from woodchips, heat recovery from kilns, high-efficiency compressors, rooftop solar.

C. Commercial development & international growth

Innovation credit / new products (CLT, timber frames, eco finishes, treatments)

  • Tickets: CHF 150k–3m · Tenor: 2–5 years

Trade finance import/export (LC, SBLC, guarantees)

  • Capacity: CHF 500k–30m
  • Uses: imported species (oak, larch, certified exotics), securing export payments.

E-commerce/D2C financing (kits, furniture, made-to-measure joinery)

  • Tickets: CHF 100k–2m · Repayment: % of monthly revenue.

D. External growth & capital transactions

Unitranche / mezzanine

  • Tickets: CHF 3–25m · Tenor: 5–7 years
  • Uses: regional build-up, MBO/MBI of specialized workshops.

LBO / acquisitions

  • Tickets: CHF 5–60m (club deal possible)
  • Targets: complementary sawmills, CLT/glulam plants, distribution networks.

Typical benchmarks (wood industry)

  • EBITDA margin: 6–15 % (lower end for volume trading; higher end for technical products/CLT).
  • Working capital cycle:
    • DIO: 60–240 days (up to 270–360 days with long drying/slow species)
    • DSO: 30–75 days (construction/civil works/DIY)
    • DPO: 30–60 days
  • Acceptable leverage: ND/EBITDA 2.0–3.5x (up to 4.0x with strong stock collateral & project visibility).
  • Typical advances: factoring 80–90 %, inventory 40–70 %, leasing 80–100 % net.

Quick case studies

Sawmill & drying — high season

  • Structure: revolving CHF 2.0m + ABL stocks CHF 4.5m (60 % advance logs/boards)
  • Effect: bulk purchases Q1–Q2, drying continuity, supplier discounts captured (–2/–3 %).

Industrial joinery — CNC modernization

  • Structure: leasing CHF 3.2m (72 months) for 2x 5-axis CNC centers + ATEX extraction
  • Effect: +28 % capacity, scrap rate –1.5 pts, lead times reduced from 6 to 4 weeks.

CLT producer — expansion & energy

  • Structure: term loan CHF 6.5m (8 years) + green loan CHF 1.1m (5 years) for biomass boiler & heat recovery
  • Effect: kWh/m³ –20 %, gross margin +120 bps, improved competitiveness in tenders.

Timber trading — client WCR stabilization for large projects

  • Structure: factoring CHF 5.0m (85 % advance) + single-name limits by contractor
  • Effect: DSO reduced from 62 to 48 days, smoothed cash flow without dilution.

PrestaFlex process (fast & pragmatic)

  • 360° diagnosis (1–2 weeks): stock mapping (logs/WIP/finished), rotation & drying, margins by line, order book, FX/energy exposure.
  • Term sheet: structure, pricing, simple covenants (ND/EBITDA, stock rotation, insurance/ATEX coverage).
  • Implementation: securities (pledge of stock/receivables), ERP integration, moisture/quality reporting.
  • Proactive monitoring: seasonal limits, extension options, energy/innovation tranches.

Why PrestaFlex for the wood industry

  • ABL expertise on long-drying stocks & FSC/PEFC-certified supply chains.
  • Multi-bank & private debt access for tickets from CHF 100,000 to CHF 60m.
  • ROI-driven approach: every financed franc must improve cash, margin, or industrial competitiveness.

Book an initial meeting

Tell us about your stock profile (logs/boards/finished goods), client payment terms and key capex priorities: we will provide you with a tailored, modular financing structure aligned with your industrial plan and seasonality.

Contact PrestaFlex now:

An article by Munur Aslan, Director of PrestaFlex

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