Agriculture Invoice Factoring

Get quick access to cash to pay expenses and grow your business

The agriculture industry—a sector of our economy that is responsible for cultivating the soil, growing crops, and raising livestock. It also provides most of our cotton, wool, leather, wood, and paper products. It puts food on our table but is so much more. 

In the U.S., there are about 2.5 million farms. The most recent data for Canada (2016) shows 193,492 farms in all provinces. In both the U.S. and Canada, the majority of farms are family-owned. Although the U.S. Department of Agriculture and Agriculture and Agri-Food Canada support the agriculture industry through initiatives and innovation; it’s often not enough to make up for a slow-paying supply chain, seasonal dips, and ongoing working capital requirements. Cash flow stagnates and business slows.  

Agriculture receivable factoring provides working capital for every link in the agriculture supply chain.

What is Agriculture Invoice Factoring?

If you are a startup farmer, shipper, or distributor with unpaid customer invoices piling up, there’s a good chance you qualify for agriculture receivable factoring. 

Small business factoring for the agriculture industry is an effective and practical option to maintain cash flow when you don’t have the time or liquid assets to wait to be paid by your customers. Slow-paying clients can stifle cash flow and working capital, as well as any plans to scale your business in the future. High-interest bank loans only add to your total debt, and qualifying can be difficult if you’re a relatively new start-up or have a limited credit history. 

Agriculture factoring allows you to get an advance on your unpaid receivables so you can finance payroll, buy supplies, and maintain daily operations. It is a type of short-term financing with flexible terms and eligibility requirements. 

Factoring doesn’t require collateral, and most agriculture businesses qualify as your customers’ credit is considered rather than your own. Factoring can be especially helpful if you depend on cash flow to grow your business or you can’t qualify for a loan or line of credit. 

Why is Invoice Factoring Important?

Companies in the agriculture sector have different challenges than many other industries. Uncertain weather, predictable downtimes and unpredictable yields, government policies, equipment upkeep, fluctuating prices can all impact farming and cause wide swings in income. That’s why finding options to maintain cash flow and sustain growth is important. 

Receivable factoring helps support agricultural operations, including:

  • Farmers and growers 
  • Processors and packers
  • Manufacturers
  • Shippers 
  • Distributors

Plus, invoice factoring can provide fast cash necessary to run your daily operations. With factoring, you can quickly pay for:

  • Additional employees
  • New equipment or inventory to support higher sales
  • Ongoing day-to-day operational expenses
  • Other expenses associated with your business, even in downtimes
  • Increasing production to meet demand or expand into new markets

What Agriculture Companies Need to Start the Factoring Process

FundThrough provides unlimited working capital based on the size of your outstanding customer invoices. The application process is easy, letting you secure the working capital you need to grow. What’s more, creating an account and advancing invoices will not affect your credit score. 

  1. To start, create a free account and provide a few business documents to confirm your business information.
  2. Select which invoices (must be less than 90 days old) you wish to factor.
  3. Get approved for Velocity invoice factoring. 
  4. Get paid the amount of your qualified invoices, less a 2.5% monthly fee.
  5. Put your capital to work.

No more chasing customer invoices or waiting weeks or months to be paid. No loans with interest to be paid back. No credit check. Just cash into your account right away by using invoices as collateral.

How Does Agricultural Invoice Factoring Compare With Other Kinds of Business Financing?

In the past, factoring was largely misunderstood. Business bank loans and lines of credit were the traditional and accepted forms of financing, along with credit cards. Each of these different funding options have pros and cons to consider.


Costs for a new or growing business can be significant. You may need to purchase equipment and inventory, pay employees, and keep up with rent, taxes, and marketing. You may consider taking  out a business loan. 


  • Many business loans have relatively low interest rates when compared to many other types of funding.
  • Interest can be deductible on your taxes. 
  • Depending on your requirements, you may have access to large sums of money to be used to grow your business. 
  • On-time repayments can help improve your credit rating. 


  • Many small, growing businesses don’t qualify for loans. They often need cash faster than the process would allow anyway. 
  • Most lenders have strict guidelines for loans and a lengthy review process.
  • You may need to have a good credit rating. Anything else and you may not qualify and if you do you’ll likely pay a higher interest rate.
  • Rates can fluctuate depending on the market. The more you borrow, the higher interest you may have to pay as the lender takes on more risk.
  • A business loan and the debt will show up on your balance sheet, which affect the valuation of your business. 


Lines of Credit

A line of credit (LOC) is a lot like a credit card. You can borrow/withdraw money up to a certain maximum amount determined by your financial institution. You can cover day-to-day expenses and pay back your debt, only to borrow again when needed.


  • You can borrow when you need it.
  • When you’re short of cash, you can borrow only what you need as long as you don’t exceed your limit.
  • Making on-time payments can help improve your credit score.
  • Lines of credit can have low interest rates.
  • The payments on the line of credit vary and vary depending on your outstanding balance.



  • As with loans, oftentimes banks won’t give small, growing businesses a line of credit. They often need cash faster than the process would allow anyway. 
  • There will be limits on the maximum amount you can borrow, which might not always be enough.
  • Although you pay-as-you-go, if you miss payments, are late, or move outside the terms of your agreement, you might face high fees.
  • It’s easy to misuse a line of credit (just like it’s easy to misuse a credit card). 
  • If your business fails, you are responsible for any payments and debt incurred from using your line of credit.
  • You need to have been in business at least two years, and will need to provide bank account information, financial statements, tax returns, and more to qualify. 
  • A line of credit is like a loan that needs to be repaid with interest.


Business Credit Cards

Like all forms of funding, business credit cards must be used wisely or things can go sideways very quickly. 


  • It’s easier to qualify for a business credit card than for a line of credit or business loan.
  • You have quick access to the cash you need when you need it.
  • Many business credit cards have reward programs or incentives, like cash back or airline miles. 
  • A business credit card can help build credit, which is helpful if you ever need to apply for a bank loan.



  • You may need to provide a personal guarantee to qualify.
  • High interest, annual fees and late charges can add up, especially if funding a large expense.
  • Many business credit cards do not offer purchase protection. 
  • Business credit cards come with security risks like fraudulent charges from unauthorized use and stolen credit card numbers. 
  • You risk overspending.


Receivables Factoring 

Invoice factoring is not a loan. The application process is quick, there is no repayment obligation, no high interest rates, and no debt to record on your company’s balance sheet. Plus, many more companies will qualify.  


  • You have access to fast cash when you need it based on the value of your invoice(s).
  • Cash advances can greatly improve shortfalls in cash flow due to slow-paying clients.
  • Does not require your business to have a long credit history, which is best for start-ups and fast-growing firms.
  • Factoring relies on the creditworthiness of your customers, not yours.
  • Invoice factoring is easier to obtain than most other forms of funding.
  • Funding can increase with the value of your invoices.
  • If your business is seasonal, factoring can infuse cash into your business to get you through the downtimes. 
  • Your accounts receivables are used as collateral, unlike many loans or lines of credit.
  • You give up no equity or control in your business in exchange for funding with factoring. 
  • No  matter the size of your business, you can use factoring. 



  • Invoices need to be verified (customer contact sometimes required).
  • Can be complicated to account for in bookkeeping.

How Do You Choose an Agriculture Invoice Factoring Partner?

Cash flow is the number one problem for most start-ups and small businesses, especially if they’re growing. This is also true for agriculture companies. Invoice factoring companies typically consider several situations before offering you an advance.

Does the factoring company work with agriculture companies?

Most factoring companies work with most industries, but not all. Some factors specialize in only a few industries. 

FundThrough works with agriculture companies.

Most factoring companies work with most industries, but not all. Some factors specialize in only a few industries. 

FundThrough works with agriculture companies.

What advance rates does the factoring company offer?

Advance rates can range from 60% to 100%, depending on the factoring company and sometimes the industry. 

FundThrough advances 100% off the invoice amount, less a fee.

What factoring fees does the factoring company charge?  

A factoring company should be able to provide what factoring fees it charges upfront. But some companies may make it difficult to determine the total costs of using their service. FundThrough offers transparent pricing so you know prior to signing an agreement. 

FundThrough pricing – 100% advance rates minus a flat fee. One upfront price.

Does the factoring company have minimums?

A minimum is the amount you must factor every period (month, each quarter or every year). Some factoring companies offer plans that require minimums, while others do not. 

FundThrough doesn’t require minimums. Only fund when you need to.

Cash flow is the number one problem for most start-ups and small businesses, especially if they’re growing. This is also true for agriculture companies. Invoice factoring companies typically consider several situations before offering you an advance.

  • Nature of the business: you must be a registered business selling goods or services to other businesses.
  • Service completion: invoice factoring is only available for goods or services that your clients have marked as complete or delivered.
  • Encumbrance-free invoice: since invoices are the only collateral in a factoring arrangement, encumbrances such as tax liens can make it difficult to qualify for factoring. (But not impossible. FundThrough works with businesses on IRS and CRA tax payment plans all the time. We can even help you with getting an arrangement set up).

Factoring invoices is a sound financial strategy if you—

  • Spend time tracking down slow-paying customers and waiting 30, 60 or 90 days to be paid, which puts a tremendous burden on your business.
  • If you’ve delivered a product or provided a service to another business.
  • If you have slow times, downtimes, or your business is cyclical.
  • You experience times of cash flow crunch.
  • You need access to working capital to grow as an agriculture company.
  • You can’t qualify for a loan.
  • Your customers or clients are creditworthy.

FundThrough takes the legwork out of accounts receivables financing. It’s fully automated platform is easy to navigate, it’s fee structure is transparent and a customer service rep is there when you have questions. Find out what FundThrough’s clients have to say, and start factoring your invoices today. 

Simple. Intuitive. Agriculture Receivables Factoring.

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