Snapshot: key facts

• Who this helps: food manufacturers, packers, caterers, contract packers and processors needing audit remedies or upgrades.
• Typical funding types: equipment/asset finance, business loans (secured/unsecured), invoice finance, sale & leaseback, working capital and specialist food-sector lenders.
• Loan sizes we arrange: from around £10,000 upwards (we do not handle very small micro-loans below this threshold).
• Speed: initial matched quotes often within hours to a few working days depending on paperwork.
• Start now: Free Eligibility Check — quick, no obligation.

What are BRCGS, SALSA and HACCP — and why upgrades matter

These standards and systems safeguard food safety and market access. Briefly:

• BRCGS (British Retail Consortium Global Standards) sets requirements across food safety, packaging and storage — widely required by retailers and exporters. See BRCGS for details: brcgs.com.
• SALSA (Safe and Local Supplier Approval) is aimed at small-to-medium suppliers selling to UK hospitality and retail; it focuses on proportionate, practical controls. More: salsafood.co.uk.
• HACCP (Hazard Analysis and Critical Control Points) is a risk-based approach required by the Food Standards Agency and often underpins other certifications. Guidance: food.gov.uk/haccp.

Upgrades are often mandatory to keep supply contracts, pass retailer audits, access new customers or meet export standards. Audit failures commonly trigger capital works (new chillers, segregation, flooring) and operational changes (training, QA lab equipment, traceability systems).

Typical compliance upgrades & audit-driven improvements

Audit findings fall into two broad cost categories:

• CAPEX (capital works): new refrigeration units/chillers, replacement packaging lines, segregation walls, clean-room fit-outs, upgraded drainage & flooring, air handling systems, lab or QA equipment, traceability hardware.
• OPEX (operational & service costs): consultancy, staff training and certification, temporary contract labour, validation testing, software subscription for traceability, recall-management systems.

Indicative costs (broad ranges):

• Small remedial works (local repairs, improved lighting, minor equipment): £3,000–£15,000
• Medium upgrades (new chillers, partial line upgrades, traceability software + hardware): £20,000–£150,000
• Major projects (full line replacement, new build fit-outs): £150,000+

Can these improvements be financed?

Yes. Most lenders and specialist brokers will finance audit-driven compliance work because it preserves or increases revenue (retail contracts, safety, export). The right product depends on whether the spend is mostly equipment (CAPEX) or operational cashflow (OPEX) and on your company’s balance sheet and security options.

Commonly, businesses use a combination of products to spread cost and protect cashflow — for example, equipment finance for a new packaging line and invoice finance or a short-term loan to cover contractor staging works and validation testing.

Which finance types suit compliance upgrades?

Equipment / Asset finance (leasing, hire purchase)

Best for: chillers, packaging lines, lab equipment, HVAC and other tangible assets.

• Pros: preserves working capital; finance secured against the asset; VAT can often be spread (depending on structure).
• Cons: must meet lender criteria for asset life and condition; early termination costs possible.
• Typical terms: 2–7 years depending on asset life; deposits sometimes required.

Sale & leaseback / Asset refinance

Best for: releasing cash from existing equipment to fund wider compliance works.

• Pros: raises capital without new debt on asset purchase; keeps equipment in operation.
• Cons: ongoing lease payments; suitability depends on asset ownership and condition.

Business loans (secured or unsecured)

Best for: mixed projects (fit-out + training + software) or where multiple cost types exist.

• Pros: flexibility to fund a range of costs; can be tailored to project timeline.
• Cons: secured loans may require property or debenture; unsecured options carry higher rates.
• Typical terms: 1–7 years (sometimes longer for property-secured).

Invoice finance & overdrafts

Best for: smoothing cashflow while upgrade works cause temporary revenue gaps or to pay contractors before new contracts kick in.

Commercial mortgages / property-secured loans

Best for: permanent structural fit-outs tied to premises where property security is acceptable.

Government grants & sustainability loans

Best for: energy-efficiency upgrades linked to compliance (e.g., more efficient chillers, insulation) — check local grant schemes and green lending options.

Specialist & higher-risk lenders

Best for businesses with imperfect credit or urgent needs; usually higher cost but useful where mainstream lenders will not proceed.

What lenders commonly require: minimum turnover thresholds, management accounts, contractor quotes, evidence of ongoing contracts, time trading (often 12+ months), and acceptable security or collateral. UK Business Loans will match your case to lenders/brokers that focus on the food industry to improve chances of success.

What lenders and brokers look for

Key items underwrite a funding decision:

• Clear cost breakdown and contractor or supplier quotes.
• Management accounts and latest annual accounts.
• Turnover and gross margin (lenders assess ability to repay).
• Evidence that the upgrade will protect or increase revenue (supply contracts, LOIs).
• Security offered — assets, property, or personal guarantees where required.
• Project timeline and validation/testing plan to show works will be completed.

Document checklist for fast assessment:

1. Two or three contractor/supplier quotes
2. Latest 2–3 years’ accounts (or management accounts if more recent)
3. Bank statements (typically 3–6 months)
4. Project plan and expected benefits (e.g., retail contract retained/gained)

Short anonymised case study

“Smith Foods” — BRCGS remediation and capacity upgrade

Issue: Smith Foods (regional packer) failed a BRCGS audit due to insufficient chilled storage and an ageing packaging line. Required works: two new chillers, line modification and traceability scanners. Cost: £120,000.

Solution: matched to an equipment finance package for the chillers and packaging line (five-year hire purchase) plus a short-term working capital loan to cover contractor staging and training costs. Result: audit pass, retailer contract retained, 18% capacity increase — loan repayments matched to improved monthly cashflow.

How to apply — how UK Business Loans helps

1. Complete our quick enquiry form — it’s a free eligibility check and not an application. Get Started — Free Eligibility Check.
2. We match your requirements to lenders and brokers in our panel who specialise in food-industry finance.
3. You receive quotes and contact from matched partners — compare terms, interest rates and repayment profiles.
4. Decide and proceed directly with the lender/broker that suits you.

Submitting an enquiry does not affect your credit score; lenders may only carry out checks if you progress to application. The enquiry is simply information to help us match you with relevant partners.

Cost considerations & ROI

When evaluating options, consider:

• Effective interest rate vs. monthly cashflow impact — equipment finance often preserves cash but spreads cost longer.
• Tax treatment — capital allowances may apply to equipment purchases; consult your accountant. GOV.UK guidance on capital allowances is a useful starting point: gov.uk/capital-allowances.
• Non-financial ROI — avoiding lost contracts, fines, or reputation damage often justifies higher finance costs.

Risks, transparency & important notes

Important: UK Business Loans is not a lender and does not give regulated financial advice. We introduce businesses to lenders and brokers so you can obtain finance quotes. Using our service is free and carries no obligation.

Be aware: different lenders have different criteria and costs. Specialist or higher-risk finance is typically more expensive. Always review terms and seek independent accountancy or legal advice where needed before committing.

FAQ

Can start-ups or very young limited companies apply?

Some lenders will consider businesses trading under 12 months, particularly for smaller equipment finance deals, but many require at least 12 months’ trading and demonstrable turnover.

Do I need to have contractor quotes before enquiring?

Quotes significantly speed the process and improve approval chances. However you can still enquire for a free eligibility check without finalised quotes — we’ll advise on what lenders will expect.

How quickly can I get funds?

Small equipment finance or unsecured loans can complete in days; larger secured and property-backed loans may take several weeks depending on valuations and legal work.

Can I get funding with poor credit?

Possibly — specialist lenders exist, but expect higher costs and stricter security demands. We can match you to partners experienced in higher-risk scenarios.

Next steps — get a free eligibility check

If you need funding to pass a BRCGS, SALSA or HACCP audit or to complete remedial works, start with a simple enquiry. We’ll match your business to lenders and brokers who understand the food sector so you get relevant quotes fast. Free Eligibility Check — Get Quote Now.

For broader food sector lending information, see our dedicated food industry finance page on food industry business loans: food industry business loans.