The Need for Factoring When It Comes to Commercial Industrial Refrigeration

If your business is in the food industry, either as a supplier, supermarket, or a restaurant, then in all likelihood you’ll need commercial industrial refrigeration. It’s virtually mandatory, because without it, food inventory will spoil. And of course, you may also be held liable if people suffer because you served them spoiled food.

But commercial industrial refrigeration is not exactly a minor purchase. It’s a major expense. If you need a new industrial refrigeration system then you may need additional financing to cover the expenses.

Paying for Industrial Refrigerators

Buying an industrial refrigerator does not entail a visit to your neighborhood appliance store. You’ll need to look at sellers which have a nearby warehouse where they store these equipment. You can pay straight cash which may deplete your cash reserves, or pay in monthly installments.

Either way, these refrigerator units represent a major drain in your cash flow. And the expense doesn’t stop at the initial cost. Your electricity consumption will also rise dramatically. A commercial refrigerator used in a grocery store can consume up to 17,000 kilowatts per year. A larger commercial freezer may use up to 38,000 kilowatts per year. If you maintain a warehouse full of perishable goods, your refrigeration costs can be sky high.

If you’re having cash flow problems, you may be able to swing a bank loan to cover the expense. If not, then perhaps alternative forms of financing such as factoring may be able to help cover your monthly expenses.

Choosing the Right Type of Refrigerator

There are several types of refrigerators, and you’ll need the right one to maximize the benefits you get. First of all, you’ll need one that’s suitable for the products you deal with. Some are for food items while others are for beverages.

You may also decide whether to get a refrigerator unit that’s out of sight or a unit designed to display the items for the customer. These units cool the items inside while they allow customers to choose the items they want from within.

You’ll need the right size to accommodate the type and quantity of the items inside. You also need to make sure that the proper temperature is achieved. Some food items need only to be cooled, while others need to be frozen.

Refrigeration Maintenance

The first thing you need to do is to make sure you have power generators in case of a power outage. This is a must, because the best refrigerators in the world are useless if you’re totally reliant on steady power output from your local electric company.

After that, you need a contingency plan should any unit fail. Some businesses use a series of refrigerators, and they make sure that if a refrigerator unit fails then the others have enough space to accommodate the extra items transferred from the defective unit.

But regular maintenance must also be performed so that the unit can last for a very long time.

Whether you own a supermarket, restaurant, hotel or food distribution company; or you have a commercial industrial refrigeration business, factoring can help ensure operations without any hiccups.


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Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at