Textile industry financing

Spinning, weaving, knitting, dyeing/finishing, garment manufacturing, brands & distribution

The textile industry combines high working capital requirements (materials, WIP, collections), heavy capex (looms, stenters, dyeing), seasonality and compliance constraints (REACH, OEKO-TEX, traceability). PrestaFlex structures solutions from CHF 100,000 to CHF 60 million for manufacturers, fashion houses, brands and wholesale/D2C platforms.

Your needs, our solutions

A. Cash flow & purchasing (cotton, wool, synthetics, accessories)

  • Revolving line / campaign credit
    Tickets: CHF 250k-8 mio - Term: 12-36 months renewable
    Use: fiber/yarn purchases, collection building, seasonal peaks (SS/AW).
  • Inventory financing (ABL)
    Tickets: CHF 500k-20 mio
    Usual advances
    • Raw materials/yarn: 50-65
    • WIP (weaving/dyeing in progress): 30-50
    • Finished products (fabrics/manufactured goods): 50-70
      + stock audits, rotation/obsolescence ratios.
  • Factoring (B2B, retail, GMS, key accounts)
    Lines: CHF 300k-25 mio - Advance: 80-90 % excl. VAT - Typical DSO: 45-90 d
    Options: credit insurance, limits per buyer, non-recourse.
  • Reverse factoring (Supply Chain Finance)
    Capacity: CHF 1-30 mio - Benefit: suppliers paid D+2, extended DSO 60-120 d.
  • VAT bridge / import/export duties & fees
    Tickets: CHF 100k-7 mio - Duration: 1-6 months.

B. Capex & industrial modernization

  • Industrial leasing (looms, knitting machines, dyeing/finishing, cutting, packaging lines)
    Tickets: CHF 300k-12 mio - Tenor: 3-7 years - LTV: 80-100 % HT.
  • Capex loan / Term loan
    Tickets: CHF 1-25 mio - Tenor: 5-10 years
    Use: workshop extension, automation, ERP/PLM/traceability.
  • Energy & sustainability (green loan/ESCO)
    Tickets: CHF 250k-6 mio - Payback: 3-6 years
    Usage: heat recovery in dyeing, variable speed drives, high-efficiency compressors, rooftop solar, kWh/ml reduction.

C. Brand, innovation & go-to-market

  • Innovation credit / NPD (responsible materials, low-impact dyes, OEKO-TEX/GOTS/GRS certifications)
    Tickets: CHF 150k-3 mio - Duration: 2-5 years.
  • Trade finance import/export (LC, SBLC, guarantees)
    Capacity: CHF 500k-30 mio - Use: international sourcing, securing collections.
  • E-commerce & D2C financing (revenue-based)
    Tickets: CHF 100k-2 mio - Repayment: % of monthly sales (flexible according to seasonality).

D. External growth & capital operations

  • Unitranche / mezzanine
    Tickets: CHF 3-25 mio - Tenor: 5-7 years - Use: vertical/horizontal build-up, MBO/MBI.
  • LBO / acquisitions
    Tickets: CHF 5-60 mio (club deal possible)
    Targets: specialized workshops, complementary brands, logistics platforms.

Typical figures (textiles)

  • EBITDA margin: 6-15% (volume/MDD low end, premium/technical high end).
  • WCR
    • DIO: 45-180 d (materials, WIP, collections)
    • DSO: 45-90 d (retail/major accounts)
    • DPO: 30-75 d
  • Acceptable leverage: ND/EBITDA 2.0-3.5x (up to 4.0x if robust collateral & order visibility).
  • Typical advances: factoring 80-90%, inventory 30-70%, leasing 80-100% ex VAT.

Quick examples

  1. Dyeing & finishing - energy efficiency
  • Installation: green loan CHF 1.8 mio (5 years) for heat recovery + compressors
  • Effect: -18 % kWh/tonne, ROI 3.8 years, lower variable costs.
  1. Financing of an AW collection for a brand
  • Arrangement: revolving CHF 1.2 mio + factoring CHF 2.8 mio (85% advance)
  • Effect: WCR -24 days, negotiation of better lead times with manufacturers.
  1. Modernization of a weaver
  • Set-up: leasing CHF 3.6 mio (6 years) for 12 looms + finishing reams
  • Impact: +30% capacity, OEE +11%, scrap -2 pts.
  1. Export deployment EU/UK
  • Set-up: LC/SBLC CHF 3 mio + credit insurance + multi-currency factoring
  • Impact: secure collections, DSO reduced from 72 days to 54 days.

PrestaFlex process (fast & practical)

  1. 360° diagnosis (1-2 weeks): WCR by link (materials/WIP/finishes), margins by range, order book, currency/energy risks.
  2. Term-sheet: structure, pricing, simple covenants (ND/EBITDA, stock rotation, currency hedging).
  3. Implementation: collateral (inventory/receivables pledges), ERP/PLM integration, monitoring tables.
  4. Proactive follow-up: adjustable seasonal ceilings, extension options based on commercial success.

Why PrestaFlex for textiles

  • Mastery of ABL (inventory/WIP) & trade on multi-site chains.
  • Multi-bank access & private debt for tickets CHF 100'000 - 60 mio.
  • ROI-driven approach: every franc financed must improve cash flow, margins or industrial competitiveness.

Call to action

Tell us about your WCR cycle (materials/WIP/finishes), your customer lead times and your priority capex: we'll send you a costed, scalable financing structure aligned with your collections and industrial plan.

Contact PrestaFlex today:

An article by Munur Aslan, Managing Director of PrestaFlex

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