When Custom Kitchen Creations needed additional working capital to begin fulfilling a new product line they needed the perfect blend of cash flow support. "We were so excited to win a contract with a large grocery chain with a new line of fresh seafood dips...until our suppliers decided to change the rules and required COD. This posed a major problem as we were essentially tapped out with our line of credit!"
Custom Kitchen's banker recognized the opportunity and the dilemma and contacted Gateway. Custom Kitchen's line of credit was based on a HELOC and their bank was not comfortable with traditional C&I lending. "We were thrilled that our banker had an immediate solution and worked diligently to help us out. Gateway was able to provide the additional funding we needed within days of our initial conversation. What a great recipe!"
Getting food to everyone's table is an incredibly important job. But when you work in an industry that puts a premium on freshness and speed of delivery, it is important to always have plenty of cash on hand. What do you do when your business starts to grow and your cash flow is no longer adequate? You do the right thing and turn to a receivables factoring company.
Banks Are Not Always The Answer
Food manufacturing companies need to be very careful when it comes to doing business with banks. While banks are great for expanding operations and launching a new product line, they are not the most reliable lenders when it comes to cash on hand. A food manufacturer has fresh ingredients coming in every day and there needs to be cash on hand to pay for those deliveries. Without the cash, there can be no business growth.
A line of credit from a bank is a limited funding option. Once the bank determines that your food manufacturing company has met its borrowing limit, then the cash is cut off. That could leave you in a lurch, if it wasn't for your outstanding account receivables. As a food manufacturer, you deliver as much fresh food as you take in and you can accumulate quite a collection of receivables. It is time to put those invoices to work for your business.
Your receivables are made up of all of those invoiced sales that you have sitting on your desk. You know that the invoices are not due yet, but you also know that you need that cash if you are going to maintain your operations. A reliable food manufacturer factoring company will turn those invoices into cash and give you the funds you need to keep your operation going.
Factoring Services are Fast And Reliable
A receivables factoring company can have your account approved in just a few days and then create a cash flow situation that puts money in your account only hours after you submit an approved invoice. Imagine what your food manufacturing company could do with reliable and consistent cash flow that will not be turned off as long as you have invoiced sales coming in. You would be able to leverage the financial strength of your business to fund your future growth.
Talk To A Food Manufacturer Factoring Expert Today
The food manufacturing industry is incredibly dynamic, which means that you want to have answers and solutions on hand at all times. Contact a us today and get your account started. You will instantly see an improvement in your company's financial situation and you will develop the confidence you need to go out and achieve your corporate goals. Don't let sudden success sink your company. Talk to our factoring services decision maker and dine on the sweet taste of your own success.