Produce Factoring - Agricultural Factoring Services
How Produce Factoring Keeps Your Agricultural Business Growing When Cash Flow Gets Tight
Managing cash flow is challenging for most businesses. Being a produce distributor for fresh or frozen perishables exponentially increases cash demands. To get the best possible pricing from your suppliers, businesses with cash always prevail.
Even if you get your customers to pay within normal terms of 7-21 days, it simply might not be fast enough to get the best pricing and keep your business competitive with the best product. Many distributors and growers find their need for working capital outpacing incoming cash, even from the best payors. Agriculture and farm factoring offers a solution to this common problem.
Real-World Success: Golden Farm Growers
Slow Growing Problem
When Morgan Stuart, President of Golden Farm Growers, needed additional working capital to support production increases and fulfill additional customer orders, they needed a quick solution to keep pace with growth! “We’re a three-year-old grower and just started to show operating profitability. Our banker has always been fair with us, but when we needed a revolving line to support our receivables, he was simply unable to help…thankfully he recommended Gateway.
“The team at Gateway worked quickly, and seven short days later, Gateway was able to provide us with a line of credit for our receivables. I wish my crops grew that fast”!
Try Gateway Liquidity Fertilizer
The lesson is clear: when traditional bank loans can’t keep up with your growing business, produce factoring might be the liquidity fertilizer you need to keep things thriving.
The Problem: Outpacing Your Cash Flow
Cash is critical on the buy side, and when more of your sales are tied up in accounts receivable, cash gets tighter by the hour. Even if your customer is a 750 or better in Blue Book, it does not mean they are quick to pay.
Banks may be reliable for long-term planning and well-established businesses, but they might hesitate to provide timely business loans when new opportunities emerge. They often want to see a long history of profitability, strong credit history, and high credit scores before extending a bank loan.
If your business is new or entrepreneurial and experiencing rapid growth, you may not currently satisfy the specified requirements. However, there are alternative forms of funding that can provide the support your business needs.
The Solution: Invoice Factoring for PACA Products
Invoice factoring services can help boost cash flow by turning unpaid invoices into immediate cash advances within hours of the invoice being generated. Our factoring company buys your outstanding invoices and gives you immediate cash upfront. Then we wait for the customer payments.
This cash flow solution allows you to take advantage of premium pricing, immediately fulfill orders and get orders shipped, pay employees, and grow your business.
When Should You Use Agricultural and Farm Factoring?
If your produce or perishable business is facing any of these scenarios, accounts receivable factoring could be the perfect solution:
- Missing premium buying opportunities due to limited cash on hand;
- Goods stuck at a border or port due to cash flow issues;
- Big buyers with extended payment terms Net 21-60 days;
- You have growing sales, but customers are taking too long to pay;
- You want to avoid getting additional debt on your balance sheet;
- You cannot access traditional loans because your business is new or needs to meet their strict credit rating and other criteria.
Grow Your Agricultural Company, Not Your Stress, With Gateway's Produce Business Factoring
At Gateway Commercial Finance, we’ve helped countless growers and distributors solve their cash flow problems with factoring. We understand the unique financial challenges in the produce industry, and we’re here to provide a quick, hassle-free financial solution to keep your business running smoothly.
Our process is fast and straightforward:
- You can receive advance rates up to 85% of your invoice value upfront.
- We provide a streamlined approval process and 24-hour turnaround times on most applications.
- You’ll enjoy flexible terms with expandable lines of credit tailored to your unique needs without being locked into long-term contracts.
Farmer Factoring Is Your Answer
Just like we helped Morgan at Golden Farm Growers, we’re ready to help you control your cash flow so you can focus on growing your business instead of stressing over delayed payments.
With Gateway, you can finally relieve the financial pressure of delayed customer payments, achieve steady cash flow, and focus on what you do best—growing your agriculture business.
Contact us to learn how our invoice factoring company can assist you with fast, flexible receivable factoring solutions. Let us help you grow and achieve financial stability! Call a decision-maker at 1-855-424-2955 or request a factoring quote to get started!