Catering Factoring - Financing Your Food Service Company
When Jason Eastman, owner of Field Catering Services needed additional working capital to support vendor demands and new sales opportunities, he turned to Gateway Commercial Finance for working capital support.
"We're a 3 year old catering company that specializes in field services to oil well drilling crews. We have a very lucrative agreement with some of the largest oil companies in the U.S., but they're extremely slow to pay our invoices. We buy food almost daily and our suppliers were limiting the amount of credit they would extend. We had to find a solution...and quickly to feed our customers!"
Jason's accountant had referred the opportunity to Gateway due to our timely response and can do attitude. "With Gateway helping us manage our day-to-day cash needs, we now have plenty of dough (no pun intended) to go around."
Indulge your cash flow cravings!
Catering Factoring puts working capital on your dish
In the catering business, there is a dynamic that puts constant pressure on the caterer to maintain strong cash flow. On the one hand, there are the large customers that offer lucrative contracts for long-term assignments, but those customers are notoriously slow payers. On the other hand, there is a catering company's need to constantly buy fresh food to satisfy customer needs.
Slow-paying customers and the daily need to purchase supplies creates a huge problem for caterers. This problem is amplified for catering businesses that do not have the necessary credit history to get an extended line of credit. Once the bank loans and bank line of credit dries up, the catering company is left in a lurch. Meanwhile, there are plenty of hungry customers to take care of each and every day.
Let The Invoices Lift The Burden
Caterers who offer food services to large universities, big corporate complexes and companies with huge field operations simply do not have the time to try and work out a new funding arrangement with a bank. Once the bank indicates that funding has come to an end, then a new solution has to be worked out immediately. Catering factoring is the ideal choice because it is a fast solution that can provide an ongoing financial support to this extremely difficult problem. With receivable financing, a caterer can use those invoices to lift the financial burden that can sometimes come with success.
Receivable Financing Works No Matter Where You Are
With receivable financing, there is no need to put your day on hold and go to an office to negotiate funding. As a catering factoring company, we will put a seamless process in place that turns your invoiced sales into cash without ever asking you to leave your work site.
Most of the business conducted with receivable financing is done online. As long as you have access to the Internet, then you can have your invoices factored quickly. Setting up an account only takes a few days and processing approved invoices with an approved account takes only hours. There are no lines to stand in and no negotiations to worry about.
Keep Feeding Your Business And Your Customers
With catering factoring on your side, those slow-paying customers suddenly become the foundation for your steady and reliable cash flow. The fresh food you need to buy on a daily basis becomes accessible without the need of bank funding. You can pay for your supplies in cash and preserve your company's bank funding options.
Catering factoring also allows you to take on new customers without the fear of degrading your cash flow. With a receivable financing company on your side, the slow-paying customers with the huge, long-term contracts suddenly become the cornerstone of your business and take your company to new levels of success that you never could have dreamed of when you started your own catering company.
If your new company's success is outpacing its cash flow, then you need catering factoring to help bring balance to your finances. A good catering factoring plan will allow you to enjoy your success and use that financial gain to look towards the future.