Get Paid Faster: Smarter Solutions for Food Businesses
In the food industry, cashflow is everything. Recent studies show that over 60% of UK SMEs experience late payments, with average delays of more than 20 days beyond agreed terms.
In food and drink, where margins are already tight, payment terms can stretch 30, 60, or even 90 days. That means many suppliers and manufacturers find themselves waiting far too long to get paid. Meanwhile, wages, raw ingredients, and overheads are on the rise.
If this sounds familiar, there's good news. Solutions like invoice factoring finance are designed to ease the pressure.
Why Payment Terms Hurt Food Businesses
Tight margins: With rising costs, waiting weeks for payment makes it harder to stay profitable.
Unpredictable buyers: Even long-standing customers can miss deadlines, leaving your cashflow exposed.
Growth limits: If money is tied up in unpaid invoices, it’s tough to reinvest in stock, equipment, or staff.
Bad debt risk: The longer you wait to be paid, the higher the chance that invoices go unpaid entirely, turning late payments into write‑offs.
How Invoice Factoring Finance Works
Invoice factoring finance allows you to unlock cash tied up in outstanding invoices. Instead of waiting months to get paid, you sell your invoices to an invoice factoring company, who advances you most of the value right away. They then collect payment from your customer when it’s due.
The benefits:
Get paid instantly for work you’ve already done
Protect your cashflow and cover day-to-day costs
Free up capital to invest in growth opportunities
Choosing the Right Invoice Factoring Company
Not all providers are the same. The right invoice factoring company should:
Understand the food industry and its unique challenges
Offer transparent fees with no hidden charges
Integrate smoothly with your invoicing processes
The Bigger Picture
Invoice factoring is one way to speed up payments — but it’s even more powerful when combined with tools that centralise and automate your finance processes. Platforms like Platter streamline invoicing, connect with accounting systems, and give you real-time visibility of what’s owed, helping you make smarter decisions about cashflow.
Final Thoughts
Payment terms don’t have to hold your business back. With the right support, whether through invoice factoring finance or by working with a trusted invoice factoring company, you can protect your cashflow and focus on what really matters: running and growing your food business.