Factoring for agriculture businesses

• Cash flow challenge: Facing long payment cycles and unpredictable cash flow.

• Perfect for: Farmers, growers, food processors, and agri-supply businesses needing reliable cash flow between harvests, supply deliveries, and customer payments.

Novuna helps agriculture businesses improve cash flow and fund growth through tailored invoice factoring facilities, either through our award-winning in-house service or by comparing providers making sure you have a great deal for your situation.

Boost your cash flow Speak to an expert

Strengthen your farm’s cash flow with flexible funding

Invoice factoring allows agricultural businesses to unlock cash tied up in unpaid invoices by selling them to a factoring provider. You receive up to 90% of your invoice value within 24-48 hours, while the provider handles collection from your customers.

This provides immediate access to funds you’ve already earned giving you the financial flexibility to cover everyday costs, invest in equipment, or purchase next season’s supplies without waiting for delayed payments.

How factoring supports the agriculture industry

In farming and agri-supply, costs never stop but payments often do. Factoring helps bridge that gap.

With factoring, you can:

• Cover seasonal costs such as feed, fertiliser, or crop inputs when income is delayed.

• Manage fuel, labour, and maintenance expenses during low cash flow periods.

• Reduce stress around late payments from large distributors, wholesalers, or supermarkets.

• Focus on farming operations rather than chasing unpaid invoices.

For suppliers and processors, factoring also smooths the peaks and troughs of contract cycles ensuring continuity even when customers take 60-90 days to pay.

Boost your cash flow Speak to an expert

Benefits of factoring for agriculture businesses

• Fast access to funds: Unlock up to 90% of invoice value within 24–48 hours.

• Improved liquidity: Stabilise cash flow to keep operations running through seasonal cycles.

• Reduced admin: Providers manage collections, allowing you to focus on production and sales.

• No new debt: Factoring releases money already owed to you, rather than adding new borrowing.

• Supplier confidence: Maintain reliable relationships with suppliers through prompt payments.

How factoring works for agriculture businesses

1. You raise an invoice after delivering your goods or services.
   
   

2. You sell the invoice to your factoring provider.
   
   

3. Receive up to 90% of its value within 1–2 working days.
   
   

4. The provider collects payment directly from your customer.
   
   

5. Once paid, the balance (minus fees) is released to you.

Other funding solutions for agriculture

• Invoice finance: Access fast funding across all invoices while maintaining customer relationships. Ideal for larger farming operations or wholesalers.

• Asset finance: Spread the cost of agricultural machinery, vehicles, or storage facilities without tying up working capital.

• Equipment finance: Fund new or upgraded tractors, combines, and production equipment with fixed, predictable repayments.

• Working capital loans: Secure short-term finance to bridge gaps between seasons or fund operational growth.

• Supply chain finance: Support supplier relationships by paying them early while maintaining longer buyer terms.

By combining these solutions, you can create a resilient funding structure tailored to your business cycle by ensuring that both short-term and long-term financial needs are covered.

How Novuna Business Cash Flow can help

We’ve helped farms, agricultural suppliers, and food producers across the UK access the flexible funding they need to stay competitive. Our facilities are quick to arrange, transparent in cost, and tailored to your production and payment cycles.

Speak to our experts today and we will help you find a great fit for your situation.