Food industry financing

Financing the food industry with PrestaFlex

Tailor-made solutions from CHF 100,000 to CHF 60 million

The food industry combines pressurized margins, strict standards, seasonality and the need for continuous innovation (quality, traceability, sustainable packaging). PrestaFlex structures agile financing for producers, processors, logisticians and D2C/retail brands.

1) Key needs & adapted instruments

A. Working capital & material purchases

  • Revolving line / campaign credit
    Standard tickets: CHF 250,000 - 5 mio - Term: 12-36 months renewable
    Collateral: pledge of receivables & inventory, sometimes liquidity covenant
    Use: milk/meat/cereal purchases, building up stocks before holidays.
  • Inventory financing (ABL inventory)
    Tickets: CHF 500'000 - 15 mio - Advance: 40-70 % of eligible inventory value
    Special features: inventory audits, monthly reports.
  • Factoring (with or without recourse)
    Tickets: CHF 200'000 - 20 mio lines - Advance: 80-90 % DSO
    DSO typical sector: 30-75 days (GMS, wholesalers, export).
    Plus: integrated credit insurance; accelerates cash conversion cycle.
  • Reverse factoring (Supply Chain Finance)
    Tickets: CHF 1 - 30 mio - Benefit: pay suppliers D+2 while maintaining extended lead times (DPO 60-120).
  • VAT bridge / VAT import
    Tickets: CHF 100'000 - 5 mio - Duration: 3-6 months
    Use: to relieve VAT peaks on imported ingredients/packaging.

B. Capex, modernization and automation

  • Industrial leasing (bottling lines, IQF freezers, pick & place robots)
    Tickets: CHF 300'000 - 10 mio - Tenor: 3-7 years - LTV: 80-100 % excl. tax
    Advantage: preserves cash; aligned with amortization period.
  • Capex loan / Term loan
    Tickets: CHF 1 - 25 mio - Tenor: 5-10 years - Covenants: ND/EBITDA, IC ratio
    Purpose: plant extension, cold rooms, UHT lines.
  • Energy & sustainability financing (ESCO/green loan)
    Tickets: CHF 250,000 - 8 mio - Payback: 3-6 years
    Usage: heat recovery, solar roofing, CO₂/ammoniac, LED lighting, kWh/tonne cost reduction.

C. Innovation, brands & market conquest

  • Innovation / R&D credit & certifications (organic, halal, kosher, FSSC 22000, IFS/BRC)
    Tickets: CHF 150'000 - 3 mio - Duration: 2-5 years
    Includes: eco packaging, labeling, ERP/traceability.
  • Trade finance (import/export)
    LC, SBLC, performance bonds
    Capacities: CHF 500,000 - 30 mio of outstanding documentation.
  • E-commerce / D2C financing
    Revenue-based financing: Tickets CHF 100'000 - 2 mio - Repayment: % of monthly sales.

D. External growth & capital operations

  • Unitranche / mezzanine
    Tickets: CHF 3 - 25 mio - Tenor: 5-7 years - Use: build-up, MBO/MBI.
  • LBO/Acquisition finance
    Tickets: CHF 5 - 60 mio (club deal possible)
    Targets: complementary brands, upstream/downstream integration.
  • Shareholder buyout / pre-IPO bridge
    Tickets: CHF 1 - 15 mio.

2) Standard figures & sector benchmarks

  • EBITDA margin (processors): 6-14% (lowest in private label/volume, highest in niche/premium).
  • WCR cycle
    • DIO (days of inventory): 25-120 depending on perishability/seasonality
    • DSO: 30-75 (supermarkets & wholesalers)
    • DPO: 30-60 (primary suppliers/packaging)
  • Accepted leverage ratios: ND/EBITDA 2.0-3.5x (up to 4.0x with strong collateral)
  • Standard advances
    • Factoring: 80-90% of HT
    • Inventory: 40-70% (perishable depreciation)
    • Leasing: 80-100% of price excl
  • Current rates by company size
    • SMEs (sales 10-50 mio): CHF 0.25-5 mio (WCR/capex)
    • Mid-caps (sales 50-250 mio): CHF 5-25 mio
    • Groups & hubs: CHF 25-60 mio+ (BFR/capex )

3) Case studies (examples)

  1. Organic bottling line (juices & smoothies)
  • Requirement: new line + pasteurizer
  • Set-up: leasing CHF 3.2 mio, 72 months, purchase option; energy subsidy for heat recovery
  • Impact: +35% capacity, OEE +12%, unit cost -8%
  1. Seasonal chocolate campaign (Q4)
  • Requirement: purchase cocoa/packaging + Christmas stocks
  • Set-up: revolving CHF 2.5 mio + factoring CHF 4 mio (85% advance)
  • Effect: WCR -22 days, supplier discounts gained (2-3 %)
  1. Acquisition of a plant brand
  • Requirement: 100% buyout + industrial integration
  • Structure: unitranche CHF 18 mio (6 years) + capex CHF 6 mio (5 years)
  • Impact: purchasing/production synergies, Group EBITDA margin +180 bps

4) Points to watch & how we address them

  • Commodity volatility → indexation clauses, hedging (forward contracts), stress tests on ND/EBITDA.
  • Perishability & recalls → stock eligibility limits, product insurance, ERP traceability.
  • GMS customer concentration → approval thresholds per buyer, credit insurance, single-name limits.
  • Energy & cooling → kWh/ton audits, energy efficiency financing (ammonia/CO₂, drives).

5) PrestaFlex process (fast & structured)

  1. 360° diagnosis (1-2 weeks): WCR, margins per SKU, GMS contracts, capex & risks.
  2. Term-sheet: structure, indicative pricing, easy-to-follow covenants.
  3. Implementation: legal, collateral, ERP integration for reporting (inventory/invoices).
  4. Proactive monitoring: limits adjusted to seasonal peaks, extension options.

Useful documents (check-list)

  • last 3 bundles & interim statements, customer/supplier ageing, stock rotation, customer/supplier top-10, order book, capex details, GMS contracts, insurance policies, supply chain diagram, CSR/energy plan.

6) Why PrestaFlex

  • ABL & trade engineering for cold/fresh/food chains.
  • Fast turnaround (implementation within a few weeks, depending on the project).
  • Multi-bank access & private debt for CHF 100'000 - 60 mio. tickets.
  • ROI-driven approach: every euro financed must improve margin, cash flow or resilience.

Get in touch to launch your financing request

Tell us about your seasonality, your three largest WCR items and your next priority capex: we'll send you a costed, scalable financing structure aligned with your business plan.

An article by Munur Aslan, Director of PrestaFlex

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