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Financing Receivables for the Dairy and Processing Plant Industry

Why Choose Us? Accounts Receivable Financing is our Business
  • Financing Rates at 0.69% - 1.59%
  • No Financials - No monthly minimums - No invoice minimums
  • No facility fees - No audits - No up-front fees - No hidden fees
  • Set up account in 3 to 5 working days - 24 hr funding thereafter
  • Credit Lines starting at $5,000 & up to 10 million
  • Customer referrals upon your request
  • We Make Same Day Decisions
Over 15 years in business
Click Here for a Quote

Call Now 1 800 876 6071

Financial Business Options for the Dairy Industry

Many companies in the dairy industry may have many financial business options for funding these days. Invoicing is used to bill out for the distribution of the dairy products. These dairy products have been contracted for the stores and facilities, that are in need of these products. These invoices say to the companies who have purchased these products, that the invoices are due at a certain time for the goods that have been purchased. These invoices may turn into accounts receivable, if the bill is not paid immediately. The typical turnover in the dairy industry does involve some time out of pocket for the bills that are due. Suppliers and dairy farms may have a wait time for the collection of these invoices.

Does Your Dairy Business Need Cash Now?

We can accommodate factoring credit lines to businesses in the dairy industry with funding needs of 25 million a month. Any dairy processing plant, supplier or service provider can qualify for a factoring receivables credit line. Most of our clients are:

  • Young companies experiencing growth and need cash today. In most cases they have been turned down by traditional bank loans due to a lack of a financial track record.
  • Mature companies that have capped their working credit line established by a bank and need more leverage.
  • This situation may require to pay the financial institution off so the client can establish an unlimited factoring credit line that will be based on the customer's credit worthiness.
  • Companies that are experiencing lack of service from another factoring company.

Factoring Receivable Finance for the dairy and processing plant industry.

  • Some of our clients may include:
  • Dairy Processing Plants.
  • Dairy farm equipment suppliers and related manufacturers.
  • Dairy laboratory services and related.
  • Dairy packaging and container related.
Why do businesses benefit by financing account receivables with us?
  • The use of back-office support for collections and mailing out your invoices sometimes offset the financing fees or decrease internal overhead related cost.
  • Free credit analysis and collection assistance to prevent bad debt.
  • Free Reports and statements of your account status via internet.
What is needed to finance a business in the dairy industry?
  • You send the original invoices with proof of performance. The service must be performed before funding.
  • The invoice is verified and then the advance is funded, typically 80% to 90% of the invoice depending on the credit worthiness of your customers.
  • Funds will be advanced within 24hrs. following verification of the invoices. This is usually completed the same day that they are received. The balance of the advance is called the "Reserve". The reserve is held back until the customer pays the invoice in full.
  • Payment of the invoices are made directly to us from your customers. Once received, the reserve is paid to you minus the discount fee.
  • At your option, the funds are sent via wire transfer, ACH or check.
  • Credit approval for new accounts is easy. All is needed is the name and address of the customer.
  • Due diligence of liens and pending lawsuits of your company will be performed prior to funding.
Financing Receivables In The Dairy Industry

The suppliers and associates of the dairy industry today have developed many markets. These markets are allowing the individual companies within the dairy industry to grow and to thrive in today's competitive market arena. There are several comparative strengths and opportunities that are threatening the world's leading dairy companies. The global dairy industry is fragmented today. The top ten companies in this industry are controlling over twenty-two percent of the total market for the dairy industry.

Globalization

With this type of presence, the dairy industry is facing many challenges. The business composite of any of these dairy companies has taken on a new face and picture. With so much of the market being controlled by just a few companies, the way that the other companies in this industry survive has changed. New entries into this business arena are facing unusual challenges.

Innovation

The leading dairy companies are focusing on innovation. They seem to be advancing with the frequent and dominant use of organic and functional dairy systems. Recent developments are involving products that are low fat or contain natural ingredients and no preservatives.

Todays Leaders In The Dairy Industry

Today's leaders in the dairy industry include Nestle's. Following this dominant leader, is Danone. Dean Foods is a close third place competitor in the dairy industry.

Why Choose Us? Accounts Receivable Financing is our Business
  • Financing Rates at 0.69% - 1.59%
  • No Financials - No monthly minimums - No invoice minimums
  • No facility fees - No audits - No up-front fees - No hidden fees
  • Set up account in 3 to 5 working days - 24 hr funding thereafter
  • Credit Lines starting at $5,000 & up to 10 million
  • Customer referrals upon your request
  • We Make Same Day Decisions
Over 15 years in business
Click Here for a Quote

Call Now 1 800 876 6071

The Process Of Dairy Production

The process of dairy production involves many business transactions. This is one of the leading industries in the area of business. Producing the dairy products may involve many steps of manufacturing and production processing. Packaging is another area of the dairy industry that is important for the successful business entity. The correct packaging will allow the consumer to see what is being purchased. There are, also, regulations to be considered that should be a part of any packaging. The supplier is important to any dairy production business. How the ingredients are shipped to the production facility is critical. The quality of the ingredients are very important and must passed current regulations, in order to be a part of any dairy product. Dairy pasteurizing is always a part of any dairy manufacturing. The basic and allowable processes are frequently improved upon. Marketing of the dairy product is critical. The consumer must know about the product. Advertising is critical in order for the consumer to know about the product and how it will improve their diet, for example. What the product can do for the consumer is important is today's market-aware society. Transportation cannot be forgotten. How the dairy products are transported to the stores and facilities is critical. The way that the products are sent to the stores is important, since many of the products need to be refrigerated and preserved. Financing is something that always must be a part of any successful business. There are financing options that will be discussed in the following paragraphs. Employee management is critical. Keeping a good staff and employees for the production distribution must be addressed.

Factoring And The Dairy Company

The dairy company may see that a factoring arrangement may be in order. Actually sending the accounts receivable to a factoring company will allow the dairy company or dairy farm to have its funding in order to exist and grow. The following are several questions about the business maintenance of a dairy company:

1. What is factoring and how would it assist with a dairy farm's account receivables?

2) How can a factoring arrangement assist with the cash flow of a dairy company?

3) What are several options for a factoring arrangement?

4) What are the advantages of a factoring agreement for a dairy company?

5) What are the negative aspects of a factoring arrangement for this industry?

What Is Factoring And How Would It Assist With A Dairy Farm's Account Receivables?

Factoring means that the factoring company has bought the value of the company's invoices. The value of the invoices is, then, advanced to the dairy company in one sum pay out. This is not a lending arrangement. This type agreement is based solely on the value of the invoices being purchased. A company credit score or even a company credit history is, usually, not required. The value of the invoices that are being purchased is based on the creditworthiness of the customers, whose invoices are being presented for purchase. If the customer has a good history of payment to the company and has a good credit score, then this particular invoice will be considered for a factoring-type purchase.

How Can A Factoring Arrangement Assist With The Cash Flow Of A Dairy Company?

The customer will, then, pay the factoring company outright for the payments due. These invoices have been purchased at a discounted price. This means that the customer will pay the full amount to the factoring company. The customer will be sent the payment notices and will, then, be in collection with the factoring company, if they do not pay their bill. After the customer has paid the factoring company in full, the factoring company will take out its fee for the service. The remaining balance will be sent to the original company, and the account for this customer will be closed.

What Are Several Options For A Factoring Arrangement?

A factoring arrangement can include a purchase of a number of the company's invoices at a discounted price. Some arrangements will send the original invoice owners up to ninety percent of the value of the selected invoices.

These invoices can be purchased without a credit check for the company, and no collateral will be needed. The company has a cash flow solution that can be as immediate as forty-eight hours.

What Are The Advantages Of A Factoring Agreement For A Dairy Company?

A factoring agreement can provide much needed cash flow. The invoice accounts can produce cash on a more immediate basis. Extending credit to customers can continue. The extensive wait that sometimes goes along with extending credit is gone. The customers can remain satisfied that they can use their credit with this dairy company. At the same time, the dairy company is not penalized by the fall out from such a delay.

New Business And Generating New Business

Generating new business is how a company will develop after a factoring arrangement. The management team will need new and innovative ideas for the dairy industry, that can be turned into new business.

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Receivable Financing Rates

Starting At 0.69% - 1.59% Or Prime +2% & Admin Fee

  • Quick Approval Process!
  • No Financials up to $350k
  • Easy Set-Up in 3 to 5 Days
  • Over 15 years in business
Click Here for a Quote
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