In the fast-paced produce industry, timing is everything. Opportunities appear and disappear in an instant, favoring those who can access working capital quickly.
For most produce businesses seeking working capital through outside financing, the approval process is burdensome, often resulting in a pile of paperwork, a high-stakes waiting game, or missed opportunities. This frustration arises because traditional financing institutions assess risk in ways that don’t align with the unique dynamics of the food supply chain. They fail to consider seasonality, the nuances of supplier and customer payment terms, and the investments required to secure supply and meet demand. Whether due to timing or a mismatch with their underwriting process, traditional financiers often struggle to understand the true potential of each opportunity and are reluctant to collaborate on solutions.
Silo recognizes this challenge and confronts it head-on. Through their financial technology (fintech) platform, Silo pioneers a distinct financing experience that is recognized by Forbes and currently is reshaping what perishable food supply chain businesses should expect from their financing partners.
Several factors differentiate Silo Capital from other financing solutions on the market, capturing the attention of produce professionals and perishable food industry leaders alike.
Unparalleled Speed and Flexibility
Silo Capital stands out for its speed and flexibility as a financing partner. Mason Brady, Founder of Brady CFO and former CFO of Homegrown Organic Farms, attests to this, saying, “Silo’s unique underwriting process allows them to expedite capital disbursement more efficiently than I have witnessed throughout my entire career as a CFO. This experience sets Silo apart from any other financier in the industry.”
The speed of disbursement highlighted by Brady is a result of Silo’s underwriting process that utilizes a specialized formula, made possible by their customer-centric research, transactional-level data, and industry expertise, to assess value. CFOs within the food supply chain echo this sentiment, particularly those with a background in traditional banking. Donald Carter, CFO of GreenFruit Avocados and a former Washington Mutual credit officer with a decade of experience, shares his perspective: “Having come from the banking world, I find that Silo’s approach to underwriting is custom-tailored for our industry. Silo takes into account seasonal patterns, industry trends, and the overall health of our business.”
Maximized Financing Availability to Optimize Outcomes
Silo’s dynamic underwriting process ensures that the financing made available to each business is maximized according to their needs. For businesses making substantial investments in infrastructure or embarking on new ventures, optimizing financing with a partner that views the business holistically is a competitive advantage.
Johnny Najar, CEO of Frutto Foods and seasoned produce professional, recognized this need and actively sought a unique financial partner to grow his new business. He states, “To establish a business the right way, substantial startup capital is essential. Banks often struggle to grasp how this industry operates, and factoring companies can jeopardize established customer relationships.”
Through Silo Capital, Frutto Foods achieved a remarkable 5x revenue growth in the first six months. Their ability to invest in multiple quality partnerships led to profit margins 4% above the market average, reinforcing their capacity to retain a top-notch team to support their growth strategy.
“Whether it’s growth, infrastructure, or team investment, Silo is there to help us achieve our goals,” says Najar. “Silo recognized our potential and respected my customer relationships. They function like an extension of the Frutto Foods team.”
A User-Friendly Platform That Enhances Cash Flow Management
Silo provides users with a set of tools specifically tailored to meet the working capital needs of businesses in the perishable goods supply chain. Businesses gain access to a user-friendly platform that streamlines the financing process.
Financing requests and approvals are straightforward, funds are easy to monitor and manage, and intuitive reports provide enhanced visibility throughout. If cash flow health is the goal, Silo’s financing and platform make it not only possible but approachable for any business owner.
“We’re reimagining how businesses can obtain the funding they need to achieve their goals and bringing working capital financing into the modern era with a fast, low-friction approval process, simple tools to monitor and manage accounts, and intuitive reporting that provides enhanced visibility,” says Jeff Butler, GM of Silo Capital. “Silo’s approach is to build long-term partnerships with our customers across all aspects of their business. We make the process of getting financing lightweight and flexible, so that business owners can spend more time focusing on what they do best.”
With Silo’s innovative underwriting process, speed of disbursement, and holistic approach to financing, Silo has become a trusted partner for businesses seeking growth and stability. The future of the perishable food supply chain is undoubtedly bright, and Silo is here to ensure that businesses can thrive, innovate, and grow at the pace of their ambition, secure in the knowledge that they have a dedicated partner propelling them toward success.