Consumers’ increasing interest in international flavors and cuisines from a range of cultural traditions means greater demand for imported ingredients. Add to that consumer expectation for the availability of fresh produce in every region of the country, regardless of season. From spices and proteins to fruits and vegetables, overall sourcing of food from abroad has risen 70% since 2017. As food businesses work to fill plates, they face additional challenges in the financial settlement cycle of their businesses.

For example, a spice business might experience a lag of months between ordering a product and its eventual delivery. Depending on the specifics of contract terms, a November order for vanilla beans at $100 per pound could cost $120 per pound three months later when the beans are ready to be delivered, due to a combination of currency rates, shipping cost fluctuations, and changing commodity pricing.

International trade settlement dates that extend into an uncertain future add additional questions about how to best approach contracting and payments. Exporters may be called to consider whether it’s advantageous to settle in U.S. dollars or in a foreign currency.

The globalization of food businesses exposes companies of every size to risks that once primarily impacted only large corporations. Because of global food sourcing and sales, today even small food businesses not only have to worry about the effects of inflation, consumer strength, and overall economic volatility, but also currency fluctuations, interest rate shifts and central banking policies, swings in trade flow, and evolving international trade policies.

Defending your business against these threats starts with a well-managed working capital cycle. Businesses with rising levels of international trade need to closely monitor margins as treasury activity increases in complexity. A tight financial operations platform adds value to your business whether you conduct international trade in U.S. dollars within the U.S. financial network, as many businesses do, or your foreign transactions involve international wires and foreign currencies.

To compete in today’s markets, cash needs to move through your business with greater speed, security, and efficiency. Improving this process contributes directly to business value, as well as providing peace of mind for food business owners and leaders.

Payments and their processing have traditionally been thought of as a cost center, leaving their potential to generate revenue unexplored. Truist can partner with your food business to help you rethink your approach to payments across the supply chain, using these key steps:

1. Employ virtual payment cards.

Virtual card programs can open the door to rebates on the flow of payments to your suppliers. Truist’s advanced ePayables let you use your existing vendor file to search for eligible virtual card matches so you can take advantage of rebates while sending payments electronically. Virtual payment cards offer a host of benefits for food businesses, including:

• Accessing additional rebates.
• Expanding Days of Payments Outstanding (DPO) with the 30-day extended pay window offered on card payments.
• Reducing fraud risk by replacing checks with more secure electronic payments.
• Streamlining payment operations and simplify reconciliation.
• Maintaining compliance with supplier contracts.

2. Consider supply chain finance.

Supplier chain finance programs can help you optimize your working capital, allowing you to take advantage of extended payment terms to suppliers and building additional liquidity while also giving your suppliers an off-balance financing source for early payments at a favorable interest rate. This win-win scenario frees cash for other operations or investment and can help reduce supply chain disruptions. At the same time, a supply chain program can also help to deepen supplier relationships and enhance suppliers’ working capital position as well.

3. Explore newer payment methods and payables strategies.

Finding the right approach for your business can help you time precise payments for future contracts and reap maximum value from purchase discounts. For example, you can process ACH payments in a batch file at a low per-transaction cost, replacing more expensive domestic wires. Look at the full range of payment options available today and select those that offer the flexibility to make operational improvements while meeting supplier needs.

4. Leverage technology to integrate payments with your ERP system.

Technology bridges can automate transaction processing, reducing manual data entry and the errors it generates. Electronic file transfers and APIs streamline workflows like invoicing, payment collection, and reconciliations. In addition, using the technology that fits your business to transfer payment information enables real-time updates between payments and ERP systems, ensuring accurate financial data for reporting, tracking cash flow, and informing business decisions. With a high degree of customization and the flexibility to tailor payment workflows, including options for multi-currency support if needed, electronic transfers are a smart way to align your payment strategy with specific needs.

With a foundation that supports optimal cash movement, some food businesses may benefit from more advanced international finance and treasury strategies. These companies can protect margins by adopting an advanced approach to currency management—whether for immediate purchase items, longer-term contracts, or to cover risk in transactions with delayed settlement dates. With the One Big Beautiful Bill’s bonus   depreciation provisions, more companies are eyeing food processing equipment upgrades, often sourced abroad, while using advanced foreign exchange strategies to soften cost increases resulting from tariffs and a weaker U.S. dollar.

If your food business has meaningful exposure to international trade, consider these techniques to gain additional control over your foreign exchange (FX) transactions:

• Hold foreign currency to provide liquidity when needed for local currency-dominated purchases, whether that be providing more flexibility for your purchasers to operate in local markets or for you to make investments in managing offshore operations.
• Use an online platform with access to real-time rates, which can improve trade payment decisions when every minute counts.
• Hedge for FX risk management, including with ongoing payments to suppliers.
• Use letters of credit for specialized situations that demand them.

Whether your business is large or more specialized, it’s important to establish a payment product mix that’s aligned with your company’s exposure. Truist’s FX partners offer advice and expertise to help you implement a solution tailored to meet the most complex challenges that food businesses face, whether you need dual billing or hedging strategies customized to your business. Truist’s systems are built around your international trade needs, including Truist OneView and Online FX for currency conversion transactions and managing global payment transactions.

Truist’s Online FX platform allows food businesses to manage frequent international transaction flow and is integrated with FX hedging solutions designed for specific situations. This comprehensive system supercharges international trade while protecting your business, giving leaders powerful tools for:

• International cash management. From same-day FX delivery to multi-currency accounts and foreign drafts, you can have liquidity in the currencies you need.
• Risk management. Access a full range of tools for contracts, orders, and hedging techniques to manage risk in your FX activities.
• Online execution capabilities. Enable time-sensitive business decisions for one transaction or thousands in bulk with a sophisticated FX platform.
• Market insights. Inform your approach with daily updates, currency forecasts, central bank commentary, technical analysis and more.
• Strategic advisory. Identify your currency exposure, evaluate your hedge program, or review your foreign exchange risk management policy with built-in tools that support your strategy.

Finding the optimal foreign exchange strategy takes finesse and a deep understanding of an increasingly complex international food and agriculture marketplace. Work with your relationship manager and Food and Agribusiness industry specialist to determine the best approach to formulate a hedging strategy that fits your business.