Next-Day Loans for Farmers
Produce Pay solves an industry-wide shortage in working capital by making next-day loans to farmers when they ship their produce.
Currently, a farmer ships their produce to a wholesaler who in turn sells it to retailers like supermarket chains for a 10% cut, but neither the farmer nor the wholesaler get cash until the retailer pays their accounts payable 40 days later. Since high expenses during harvest season create intense cash flow strains, wholesalers advance 20-40% of the produce value to farmers once they get a receivable from the retailer 8-10 days after original shipment (still a long wait).
Our platform logs & tracks all produce inventory in real-time, enabling us to immediately loan against that inventory as collateral with 40% payment advances to farmers. That is an enormous benefit to farmers as well as to wholesalers, who are currently taking on credit risk and greatly limited in the number of farmers they can work with based on the amount of cash they have to advance.