Financing Seafood Distributors With Invoice Factoring
Seafood distributors that sell to hotels, large grocery stores, and other venues often have to provide their clients with 30 to 60 day terms. Most large corporate clients demand credit terms as a condition of doing business and this demand leaves you little flexibility because if you don’t offer terms, your clients may go to your competitor.
Most seafood distributors either get short payment terms from their suppliers or must prepay for goods altogether. Whereas they must pay their suppliers quickly, they must wait months before they can collect payment from their own clients. This funding gap can put you in a financial bind and you won’t be able to grow as quickly as you could have.
Two financial problems
Seafood distributors often face the following problems:
Needing funds to pay suppliers
Needing funds to cover ongoing expenses
Accel Business Funding can help you solve these financial problems with our invoice factoring services.
Solving slow invoice payments
If clients paid their invoices within a few days after receiving the seafood, there would be no funding gap. The problem is that most retail, hospitality, and grocery clients only pay in 30 to 60 day terms.
One way to resolve this is to use invoice factoring. A factoring company, also known as factor, can finance your slow-paying invoices from your creditworthy customers. The factor will purchase your outstanding invoices and advance funds to your company. The factor will also be responsible for invoice collection.
Many companies use Accel Business Funding’s invoice factoring to finance their business on an ongoing basis because it improves their cash flow.
Accel Business Funding can help!
Accel Business Funding can improve your cash flow via invoice factoring with our 22 years of experience in Invoice Factoring.