Food & Beverage Manufacturing · Sub-niche
Co-Packing & Private Label Financing
Co-packers and private-label producers front all the ingredient, packaging, and labor cost and get paid weeks after the brand owner does. Factoring against brand-owner receivables and PO financing on new SKUs bridge the gap without diluting your equity.
You're running someone else's brand on your line. You buy the ingredients, buy the labels, buy the corrugate, pay the operators, ship the pallets — then wait 30, 45, or 60 days for the brand owner to pay while you're already running the next SKU for the next customer.
Underwriters get this model. Your invoices are to brand owners, and if those brand owners are legitimate businesses, the receivables factor cleanly. PO financing handles the ingredient and packaging spend on a new production run so you're not funding growth out of your operating account.
We work with lenders who understand contract-manufacturing terms, tolling arrangements, warehouse-and-distribution add-ons, and the reality that one brand owner can be 30–50% of your volume for a while.
Want a written answer specific to your co-packing & private label operation? Email a specialist — no pressure, no obligation, no fees to you.
What underwriters will actually ask for
Co-Packing & Private Label files have a specific documentation pattern. Bringing these up front usually cuts weeks off the timeline.
Executed co-packing / MSA agreements with each brand owner
Underwriters need to confirm you're an independent contractor, not a subsidiary, and that the brand owner is the obligated payor on invoices — not a passthrough.
Aged AR by brand owner
Concentration matters. A single brand owner over ~50% of receivables usually caps advance rate rather than kills the deal.
Ingredient and packaging supplier list (for PO financing)
For PO financing on a new SKU, expect to submit the supplier POs, quantities, delivery windows, and payment terms. Suppliers must accept payment by wire or ACH from the PO finance company.
Trailing 12-month financials and production reports
Interim P&L, balance sheet, and a production summary by brand owner. Tolling vs full turnkey production is broken out because margins are structurally different.
Facility certifications (SQF, BRC, organic, kosher, etc.)
Not required for approval, but relevant certifications and audit history reduce diligence friction and open doors to lenders with grocery/retail experience.
Backup manufacturing agreement or business continuity plan
For larger lines, lenders sometimes ask what happens if a brand owner walks. A short continuity note about capacity redeployment is usually enough.
Programs co-packing & private label operators actually use
Ranked by how often they're the right fit for this sub-niche, with the reason each one works written for co-packing & private label specifically. Your actual match depends on buyers, margins, and the working capital problem you're solving.
Program
Invoice Factoring
Why it fits here: Your invoices are to brand owners, and brand-owner receivables factor cleanly when the payor is a legitimate commercial business. Extended 45 to 60 day brand terms stop dictating your production calendar.
See how it works →
Program
Purchase Order Financing
Why it fits here: Pays ingredient, label, and corrugate suppliers directly on a confirmed production run. This is the structure that lets a smaller co-packer accept a national retail program without self-funding the materials.
See how it works →
Program
Equipment Financing
Why it fits here: Fillers, cappers, labelers, cartoners, and case packers finance on the equipment itself. Adding a second line for a new brand owner no longer means draining the operating account.
See how it works →
Important disclosures for co-packing & private label
Sub-niche pages are informational. Manufactor Finance is an independent business financing referral service — not a bank, lender, direct funder, private equity firm, or investor. We are not counsel to your contract-manufacturing agreements, tolling arrangements, or brand-owner contracts. Advance rates, program eligibility, and terms are set solely by the funding partner and vary by brand-owner credit, concentration, and state of operation.
A location page on this site indicates that Manufactor Finance is taking clients in that market — it does not represent a physical office, storefront, or licensed presence in that city or state. All services are delivered remotely by our US-based specialists. Manufactor Finance is an independent business financing referral service, not a bank, lender, direct funder, private equity firm, or investor, and we do not make credit decisions.
Co-Packing & Private Label financing by city
Local pages for every metro we serve, with the buyer mix and payment terms that shape the file.
Co-Packing & Private Label financing — FAQs
They care about who is on the invoice. As a co-packer, your customer is the brand owner and that receivable factors cleanly as long as the brand owner is a legitimate commercial buyer. Terms are typically comparable to any B2B factoring line.
Yes, if the end-buyer PO (from the retailer to the brand owner, then from the brand owner to you) is verifiable. First-time runs go through extra diligence on both the brand owner and the retail buyer.
It's usually a cap, not a disqualifier. Advance rates may drop or a concentration limit may apply. A signed multi-year MSA, purchase commitments, or diversification plan usually recovers most of the advance.
That's exactly why co-packers factor. Factoring converts the extended term into cash within 24–48 hours of invoicing while the brand owner keeps paying on their normal schedule.
Yes. Equipment financing routinely covers fillers, cappers, labelers, cartoners, case packers, palletizers, and metal detectors. New and used both finance; terms typically 36–72 months.
Tolling (where the brand owner supplies materials and pays only for conversion) is a lower-margin, service-fee model. Factoring works — the invoice is the tolling fee. PO financing usually doesn't apply since you're not buying the ingredients.
No — the invoice is still B2B to the retailer. Retailer receivables (Kroger, Costco, Walmart, Target, Albertsons) are among the strongest credits factors underwrite.
Other food & beverage manufacturing sub-niches
USDA Meat & Poultry Processing
Working capital, PO financing, and equipment loans for USDA-inspected meat, poultry, and further-processing plants.
Craft Beverage & Bottling
Funding for craft brewers, distillers, non-alcoholic beverage brands, contract bottlers, and canning-line operators.
Specialty, Organic & Better-For-You
Funding for organic, non-GMO, gluten-free, plant-based, allergen-free, and specialty diet brands scaling into natural grocery and mass.
Dairy & Cheese Processing
Working capital, equipment loans, and PO financing for dairy processors, cheese makers, and fluid-milk bottlers selling to grocery and foodservice.
Bakery & Snack Production
Equipment loans, factoring, and working capital for commercial bakeries and snack manufacturers supplying grocery, club, and foodservice channels.
Funding Requirements Checklist for US manufacturers
See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.
- What documents you need for each program
- Typical time-to-fund by program
- Common disqualifiers worth knowing up front
- How Manufactor Finance is compensated — $0 fees to you
Talk to a funding specialist
Questions before you apply? A specialist can walk through this checklist with you, no pressure and no obligation.
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