In the produce industry, it’s common practice to process payments on a fixed schedule—often once a week, on a day like Friday. While this approach offers predictability, it can leave significant value untapped. By adhering strictly to a weekly payment cycle, companies may inadvertently sacrifice opportunities to optimize cash flow. Payments are processed when convenient rather than strategically. For example, paying invoices immediately upon receipt—or even days before due—ties up working capital that could be used for operational priorities or growth initiatives. Conversely, stretching payments closer to their due date, within contract terms, can improve liquidity and provide a buffer for unforeseen expenses.

Modern Treasury management solutions, such as those integrated into ERP systems, offer a more intelligent approach to produce payments. These systems provide real-time visibility into cash positions, upcoming obligations, and payment schedules. Rather than defaulting to a fixed schedule, companies can make informed decisions that align payments with cash availability and business priorities. This proactive approach not only enhances liquidity management but also strengthens grower relationships by ensuring payments are made accurately and in accordance with agreed terms.

Key capabilities include the automation of grower payments for liquidations, streamlining the process of disbursing funds after produce has been sold. By automating grower settlements, companies reduce manual intervention, minimize errors, and improve transparency. Additionally, the integration of domestic and international payments—including ACH and wire transfers—ensures that payments to growers, vendors, and partners are processed efficiently, whether within the U.S. or across borders.

Shifting from a routine-driven to a strategy-driven payment process requires more than just policy changes—it calls for a robust technological foundation capable of integrating diverse payment channels and managing complex financial data seamlessly. By leveraging systems specifically designed for the produce industry, companies can automate produce payments, reduce errors, improve transparency, and streamline workflows for both domestic and international transactions, while also maximizing working capital.

Ultimately, the question is not when payments are processed, but whether they are processed at the optimal time. Rethinking the traditional weekly payment cycle in favor of a more strategic, automated, and integrated approach can unlock significant financial advantages, strengthening your position in the produce industry and fostering long-term relationships with growers and partners. 

Produce businesses face unique cash flow challenges due to seasonal variations, perishable goods, and complex supply chains. They need a dedicated Treasury solution that not only automates grower payments and liquidations but also integrates domestic and international payments via ACH and wire transfers. This what Reserva Treasury delivers.