Trade finance for food and beverage businesses

• Cash flow challenge:  Food and beverage businesses often facing long payment terms from buyers while needing to pay suppliers, transporters, and producers upfront.

• Perfect for: Food and drink manufacturers, importers, and distributors managing overseas suppliers, seasonal demand, or export contracts.

Novuna helps food and beverage businesses secure trade finance facilities that keep supply chains funded, payments flowing, and international trade moving – either through our award-winning in-house service or by comparing providers to ensure you have a great deal for your business.

Boost your cash flow Speak to an expert

Keep your food and beverage supply chain flowing smoothly

From sourcing ingredients to exporting finished products, every stage of the food and beverage supply chain requires cash flow. But global trade comes with long payment cycles, import duties, and shipping delays, all of which can put financial pressure on your business.

Trade finance provides working capital exactly when you need it, ensuring you can pay suppliers, secure materials, and meet customer demand without waiting for buyer payments.

With trade finance in place, your business can:

• Pay suppliers early and maintain strong trading relationships.

• Fund imports and exports without straining cash reserves.

• Manage foreign currency and shipping costs with confidence.

• Reduce risk through letters of credit and payment guarantees.

How trade finance supports food and beverage companies

The food and beverage industry depends on efficiency, timing, and trust. Trade finance offers the liquidity and assurance required to keep goods moving from producer to plate.

Typical applications include:

• Paying overseas suppliers for raw ingredients, packaging, or machinery.
• Bridging cash flow gaps between manufacturing and final delivery.
• Funding logistics costs for cold storage, freight, and transport.
• Supporting exports through letters of credit and bank guarantees.
• Reducing risk exposure to international buyers and fluctuating currencies.

Best trade finance solutions for the food and beverage industry

1. Letters of credit

Guarantee that payment will be made to your suppliers once goods or documentation are received.

Advantages:

• Builds trust with international suppliers.

• Reduces non-payment risk for importers and exporters.

• Improves credibility in cross-border trading.

2. Import and export finance

Provides upfront funds to pay suppliers or manufacturers before receiving payment from buyers.

Advantages:

• Maintain production flow without waiting for invoices to clear.

• Avoid disrupting supply due to short-term cash shortages.

• Fund international trade without using internal capital.

3. Invoice finance

Unlocks working capital from unpaid invoices once goods have been delivered.

Advantages:

• Access up to 90% of invoice value within 24–48 hours.

• Smooth cash flow between shipping and final payment.

• Reduce reliance on overdrafts and short-term loans.

4. Supply chain finance

Enables suppliers to receive early payment once invoices are approved, funded by your trade partners or financiers.

Advantages:

• Supports supplier relationships across your value chain.

• Improves liquidity for all parties in your network.

• Strengthens resilience against disruption or delays.

5. Working capital loans

Flexible funding to cover general expenses such as packaging, transportation, or short-term supplier costs.

Advantages:

• Maintain cash flow during seasonal demand spikes.

• Fund operations while awaiting large trade payments.

• Ensure operational continuity across multiple markets.

Trade finance vs supply chain finance

Benefits of trade finance for food and beverage businesses

• Improved cash flow: Access capital tied up in trade receivables or pending shipments.
• Faster supplier payments: Secure discounts and strengthen supplier trust.
• Reduced risk: Protect against non-payment, delays, and currency fluctuations.
• Better scalability: Support expansion into new markets or product lines.

Boost your cash flow Speak to an expert

How Novuna Business Cash Flow can help

We’ve helped food and beverage businesses across the UK access to stabilise operations and support long-term success.

Get in touch with our experts today and we will find a great fit for your situation.