Food manufacturing and its related industries of agricultural production and food services combine to represent one of North America’s largest industries. This industry sector contributes more than $1 trillion a year to the U.S. gross domestic product (GDP). More than one of every ten jobs in the U.S. relates to agriculture and food and an average of one out of every eight dollars spent in U.S. homes goes for food.
Producing and shipping North America’s food is big, big business. It is also a complex industry with many moving pieces. Food manufacturers, distributors and importers have a unique business challenge. If you are in the business of food processing and manufacturing, you know that timing is extremely critical in your work. You must get your perishable products to your customers on time and without delay.
Yet food manufacturers often have to pay their suppliers long before their customers pay them – and that can result in a cash flow crunch. That’s when food manufacturers factoring can help close the gap between delivering food products and getting paid for them.
Factoring solutions designed for food manufacturing provide working capital quickly to the companies so they can make payroll, pay for agricultural products and other suppliers, and invest in equipment.
When you partner with Interstate Capital, you get paid in advance, when your products are delivered, rather than waiting for 30, 60, or even 90 days for your customers to pay your invoices. When you factor your accounts receivable, you will be able to take on larger contracts and clients, pay your suppliers quickly, and keep your operating expenses steady. You can even take advantage of early payment and volume discounts.
Factoring makes sense when timing and steady cash flow are the keys to success. That’s why so many food manufacturers choose invoice factoring for a reliable source of working capital.
Interstate Capital offers the ideal alternative to traditional funding models and bank loans. Instead of borrowing money, you incur no debt. In addition, your funding is not dependent upon your credit score or financial history, but rather the creditworthiness of your customers.