ProducePay launches expedited financing option for U.S., Latin American growers
Agriculture marketplace ProducePay has launched Quick-Pay+, a new financing option that allows growers to improve cash flow while connecting them with pre-vetted buyers, says the Los Angeles-based company.
ProducePay provides trade protection, capital and market insights for members of the produce supply chain
Through the Quick-Pay+ option, growers who are members of ProducePay’s Marketplace will be able to receive up to 96% of their shipment’s value 24 hours after the buyer confirms its reception, the company said in a news release.
“This is an important milestone for the agribusiness, since never have producers had the ability to recover their investment so quickly, therefore allowing them to reinvest capital and make production more efficient,” Pablo Borquez, CEO and founder of ProducePay, said in the release.
Using Quick-Pay+ will help growers increase their yield and make it so buyers have the possibility to expand their business and diversify their commodity portfolio with growers in the United States, Mexico and South America, the company said in the release.
With the launch of this product, ProducePay says it aims to “increase transactions exponentially through its platform and materialize the vision of an industry where fresh produce transactions are paid immediately and transparently upon delivery.”
Noting demand for simplified fresh produce transactions among trading partners, ProducePay points to USDA data, which shows that, in 2019 alone, agriculture, food and related industries contributed $1.109 trillion to the U.S. gross domestic product. During that year, Mexico accounted for 76% of fresh vegetable import volume, with berries and avocados being among the top five imported commodities.
In 2021, 1,222 export transactions were generated between American, Mexican and South American growers with buyers all over the country — stats that demonstrate the need for a transparent and easier way for American buyers to trade fresh produce, ProducePay said in the release.
ProducePay expects Quick-Pay+ to improve and facilitate the transactions of fresh produce, allowing buyers to diversify their grower sourcing with access to growers who are ready to trade.
To date, ProducePay has provided over $3 billion in financing to members of the fresh produce supply chain across 12 countries, the company said in the release. In early 2021, ProducePay completed a Series C funding round for $43 million.
