Invoice Financing for Agriculture
You delivered grain to the elevator last week. $75,000 invoice but they pay net-30. Next season's inputs need ordering and fertilizer prices are going up. Invoice financing advances most of that receivable now so you can fund operations and lock in prices without waiting 30-60 days for commodity buyer payment.
How much funding do you need?
Drag the slider or type an amount
Invoice Financing for Agriculture
Farms selling to elevators, processors, or contract buyers often wait 30-60+ days for payment while needing cash for inputs, equipment, and operations. Invoice financing converts that waiting period to immediate working capital.
Commodity Payment Reality
Grain elevators and processors typically require net-30 to net-60 payment terms. Harvest deliveries may not pay for weeks or months while input costs for next season are already due.
Buyer Credit Drives Terms
Invoice financing terms depend on buyer creditworthiness. Major grain elevators, food processors, and contract buyers have strong credit, enabling excellent advance rates.
Seasonal Working Capital
Invoice financing scales with your harvest. More deliveries mean more invoices mean more available capital. Natural alignment with agricultural cycles.
Not Traditional Debt
Invoice financing is technically a sale of receivables, not a loan. You sell the right to collect on the invoice in exchange for immediate cash.
The Agricultural AR Challenge
Commodity payment cycles create receivables that strain farm working capital at critical times.
Harvest Payment Delays
Commodity buyers pay 30-60+ days after delivery. Harvest is complete but cash does not arrive for weeks while next season input costs are already due.
Input Timing Mismatch
Seed, fertilizer, and chemical prices favor early ordering. Cash from harvest arrives too late to capture best pricing.
Contract Receivables
Contract farming with corporate buyers often means extended payment terms of 45-60+ days.
Capital Timing
Need to order inputs, pay land rent, or fund operations before commodity payment arrives.
Working Capital Gap
Period between harvest delivery and payment strains farm working capital.
Equipment Opportunity
Equipment available at favorable price but commodity payment has not arrived yet.
Agriculture Invoice Financing Process
Convert commodity invoices to cash within days.
Setup
Complete application and provide buyer information. Establish financing relationship.
3-7 days initial
Invoice Submission
Submit invoices from commodity buyers with delivery documentation.
Same day
Verification
We verify delivery and invoice validity with the buyer.
24-48 hours
Advance
Receive 80-90% of invoice value deposited to your account.
24-72 hours
Get Paid Now for Delivered Commodities
Invoice financing converts commodity and contract receivables into immediate working capital. Stop waiting 30-60 days for buyer payment. Fund next season inputs, capture pricing opportunities, and maintain operations without the cash flow gap.
Immediate Cash
Receive 80-90% of invoice value within 24-72 hours of submission. Do not wait 30-60 days for buyer payment.
Buyer Credit Based
Financing based on buyer creditworthiness, not your credit. Major elevators and processors support excellent terms.
Not Debt
Invoice financing is technically a sale of receivables, not a loan. Different balance sheet treatment.
Scales With Harvest
More deliveries create more invoices create more available capital. Natural scaling with agricultural cycles.
No Fixed Commitment
Use invoice financing when you need it. No obligation to finance every invoice.
Multiple Buyer Support
Finance invoices from multiple elevators, processors, and contract buyers simultaneously.
Agriculture AR Financing Applications
Common scenarios where invoice financing helps farms optimize cash flow.
Grain Elevator AR
Grain delivered to elevator on net-30 terms. Finance to fund input ordering for next season.
Typical funding: $25K-$200K advanced
Processor Invoices
Food processor invoices with slow payment terms. Convert to immediate capital.
Typical funding: $30K-$150K advanced
Contract Farming AR
Contract farming receivables from corporate buyers with extended terms.
Typical funding: $25K-$150K advanced
Input Timing
Finance harvest invoices to capture early-order input pricing.
Typical funding: $40K-$100K advanced
Harvest Peak
Massive invoice volume at harvest. Finance to smooth cash flow.
Typical funding: $50K-$300K advanced
Equipment Opportunity
Equipment available but commodity payment has not arrived. Bridge with AR financing.
Typical funding: $30K-$100K advanced
Invoice Financing vs. Other Farm Capital Options
Understanding how AR financing differs from traditional farm financing.
| Feature | Invoice Financing | Working Capital Loan | Line of Credit |
|---|---|---|---|
| Based On | Specific invoices | Overall business | Business + credit |
| Creates Debt | No (sale of AR) | Yes | Yes when drawn |
| Advance Rate | 80-90% | N/A | N/A |
| Approval Speed | 24-72 hours | 1-3 weeks | 1-2 weeks |
| Scales With AR | Automatically | Fixed amount | Fixed limit |
| Cost Basis | % of invoice | Interest rate | Interest + fees |
| Buyer Credit Impact | Primary factor | Minor | Minor |
| Seasonal Fit | Excellent | Good | Good |
Agriculture AR Financing Requirements
What is needed to qualify for farm invoice financing.
Commodity Buyers
Invoices from grain elevators, processors, contract buyers, or other creditworthy agricultural purchasers.
Creditworthy buyers
Delivered Commodities
Invoices must be for commodities already delivered and accepted. No advance on future deliveries.
Delivered product
Buyer Quality
Buyers should be creditworthy entities. Major elevators and processors are ideal. Small local buyers may not qualify.
Major buyers preferred
Clean Invoices
Invoices should be undisputed and not pledged to other financing.
No disputes or liens
Minimum Volume
Most factoring relationships require minimum monthly or annual volume.
$100K+ annually
Operating Farm
Active farming operation with legitimate commodity sales.
Active production
Farms with major commodity buyer relationships are ideal candidates. Buyer creditworthiness drives terms more than farm credit.
Real Results
Harvest Plains Farm
Row Crop Operation, Nebraska
The Challenge
Harvest Plains had $120,000 in outstanding invoices from 2 grain elevators, both on net-45 terms. They needed to order next season's seed and fertilizer to lock in pricing that was increasing monthly.
The Solution
We established invoice financing facility with both elevators. Advanced 85% of invoices ($102,000 initially) within 48 hours of submission.
The Result
Harvest Plains ordered inputs at favorable pricing, saving approximately $8,000 versus delayed ordering. They routinely finance $80,000-$150,000 in commodity AR at harvest to fund input pre-orders.
“Elevators pay when they pay. Invoice financing means I can order next season's inputs at the best prices without waiting for commodity payment. The cost is less than the input price increases I avoid.”
Agriculture AR Financing Data
Statistics on invoice financing in agriculture.
Agriculture AR Financing Advantages
Why invoice financing works well for farming operations.
Input Timing
Order next season inputs without waiting for commodity payment. Capture early pricing.
No Balance Sheet Debt
Invoice financing is a sale of receivables, not debt. Different financial treatment.
Harvest Scaling
Finance more during harvest when AR volume is high. Natural seasonal alignment.
Buyer Credit Value
Major buyer creditworthiness enables excellent terms regardless of farm credit.
Flexible Use
Finance invoices when you need capital. No obligation for every invoice.
Multiple Buyers
Establish financing with multiple elevators and processors.