Packaging machinery financing

Packaging machinery is how a food, beverage, supplement or consumer product company goes from filling by hand to filling by the case, and a line is usually several machines from several builders that have to work as one. iFinancial Group finances single machines and full lines, new or used, on a one-page application. No tax returns and no audited financial statements to apply, no minimum and up to $1,000,000.

Who you're dealing with

iFinancial Group has funded equipment since 1997, roughly $600 million of it, in all 50 states. We're a direct lender, not a broker, so the file is underwritten in house and not shopped around. Our customers have ranged from independent manufacturers to global technology companies. We've barely advertised in almost three decades. The business came from repeat customers, referrals, and vendors sending us their customers.

What you're financing

Case erectors and case sealers typically list new from about $20,000 to $80,000. Fillers, cappers and labelers run roughly $30,000 to $200,000 each depending on speed and product. Vertical and horizontal form-fill-seal machines run $100,000 to $500,000. Robotic case packers and palletizers run $150,000 to $400,000, and a full integrated line runs $500,000 and up.

Those are market ranges. Speed, the product being packed, sanitary design requirements and the builder move them.

What goes on the same approval

A line goes on one approval as one piece of equipment, even when the filler, the capper, the labeler, the conveyors, the checkweigher, the case packer and the palletizer come from five different builders. Change parts for additional products and the integration that ties the line together belong to the equipment.

Rigging, installation, line integration and training are soft costs and can ride on the same deal, on many deals up to 30% of the total.

Who buys them and how the payment gets covered

Food and beverage producers, co-packers, supplement and cosmetics manufacturers, pharmaceutical packagers, and consumer product companies. The trigger is usually a retail or distribution win: a buyer wants volume the company can't fill by hand, and the purchase order for that volume is the case for the line.

A new line ramps with the account. A deferred first payment, typically up to 90 days, or step payments can match the payment to the ramp.

New or used

Used packaging equipment trades actively through dealers that specialize in it, through plant auctions and between producers, often at 30 to 60 percent of new. A used machine with new change parts for the product is a normal purchase. All channels are financeable here.

On a used machine, the wear parts, the drives, the controls and whether it meets the sanitary standard the product needs get the inspection. On the financing side it's the invoice or bill of sale, the serial number, a lien search on a private sale, and proof of what was paid.

What slows a packaging deal down

Builder lead times and deposits, especially on custom machines. On qualifying transactions we can pay at order so the deposit is part of the financing. An approval holds up to 60 days.

A full line above $1,000,000 is structured under a master lease. Below that line it's the same one page.

How it works with iFinancial Group

It's the same one-page application whether the equipment is small or the deal runs to $1,000,000: no tax returns and no audited financial statements to apply, no minimum and up to $1,000,000. Decisions typically come back within 24 hours, and an approval holds up to 60 days. New and used equipment, terms up to 84 months, and soft costs up to 30% so freight, setup and training can go in the same deal. Payment structures beyond level payments are there when the equipment earns unevenly. We've been doing this since 1997, in all 50 states.

Other manufacturing equipment: CNC machining center, CNC lathe, fiber laser cutting machine, press brake, injection molding machine, waterjet cutting machine, robotic welding system, industrial 3D printer, forklift. Or start with manufacturing equipment financing.