The food business can be a richly rewarding industry, whether you are in food processing, distribution, or food import/export. However, food manufacturers, distributors and importers have numerous challenges working with food, whether they are new startups or long-established corporations. Owners of companies in this field often are on tight timelines, especially if the food is quickly perishable fresh produce, meat, or dairy products. Timely deliveries and on-time payments for food products and staff salaries are also critical.
Timing is also critical for these companies when they must wait for customers to pay their invoices for the deliveries they received. This is where a factoring company can help a food manufacturer or distributor bridge the gap between purchasing the raw materials or food products and getting paid. The factoring company can purchase the food company’s invoices and pay them upfront, giving them the cash they need to pay their bills.
The factoring company also takes care of collecting on those invoices, freeing up the company’s executives and staff to take on the more important task of finding more customers and expanding the business. Having cash in hand also enables the food company to pursue volume discounts from suppliers and work with customers with longer payment terms.
Tips for Food Manufacturers, Distributors and Importers
Some factoring companies have more experience in this field than others. Look for a company that knows the importance of timing and customer service in the food industry. Find someone who understands your challenges and can partner with you in growing your business.