UK food manufacturers and contract packers operating as limited companies or LLPs face a distinctive financial challenge: significant investment in production equipment, long lead times on ingredients, and payment terms from retail and foodservice buyers that can stretch to 30, 60 or even 90 days. Short-term business finance can bridge the gap between cash out and cash in without diluting equity or committing to long-term debt.
Common capital and working-capital needs
- Food-grade processing machinery — fillers, sealers, pasteurisers, extruders
- Clean-room or BRCGS-compliant facility upgrades
- Ingredient bulk purchases — particularly for commodities subject to price volatility
- Packaging materials and labelling runs for retailer listings
- Working capital between production and retailer payment settlement
- New product development, food safety testing and certification costs
How Credicorp products map to manufacturing needs
For a defined equipment purchase or facility upgrade, a Credicorp Business Loan provides a fixed lump sum with clear, short-term weekly repayments. For working capital that fluctuates with order volumes — busy months needing more, quiet months needing less — Credicorp Flex (a revolving credit facility) lets you draw, repay and redraw against a standing limit. For a single large ingredient or packaging invoice, Credicorp Slice spreads it across three or four weekly instalments at a flat 6% fee.
What to prepare before applying
- A clear picture of your debtor book and typical retailer payment terms
- Details of any seasonal production peaks or troughs
- Evidence of confirmed listings or ongoing supply contracts, if available
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Business finance for fishmongers and seafood trading companies, Finance for contract catering businesses.