Companies that provide food services, whether they are small family-owned catering firms or large multinational corporations, share certain business challenges. They must provide precise delivery of highly perishable, time-sensitive products yet they likely won’t get paid for their products for a month or two. This creates a cash flow problem when it’s time to pay staff, purchase products, and make other necessary expenditures that food service provider factoring can help with.
Food service provider factoring can help food service businesses receive the funds they need to keep their companies operational and growing. As the owner of a food service company, you know that waiting 30 to 60 days for your invoices to be paid can put your business in danger of late paydays and impatient suppliers. c. While 60 days can represent typical payment terms in the food industry, this delay can slow down opportunities for growing your food service business.
Food service providers face many challenges, but ensuring that you have a positive cash flow doesn’t have to be one of them. Food service provider factoring solves the problem of waiting for extended periods of time to be paid. The food service business sector is an increasingly competitive industry and factoring your invoices can enable you to take on larger contracts and customers with longer payment terms. Factoring also provides a cash infusion that you can use to expand your operations and become more profitable.
When you partner with Interstate Capital, you can receive an advance on what you are owed on the same day you submit your invoice. With this kind of fast and convenient funding, you can afford to pay suppliers, staff and transportation services each month on time.