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Business Capital Provides $4.5MM Equipment Loan for Wine Company

August 06, 2014, 07:00 AM
Related: Business Capital

Business Capital announced it structured a $4.5 million equipment loan for a wine producer in California.

The company is a high volume, state-of-the-art wine processing facility and vineyard located in Napa Valley. The company operates the largest single location, independent custom crush, bottling and wine storage facility in Northern California and offers “grape-to-bottle” services to hundreds of state and local wineries, as well as to several well-known industry titans who have outgrown their facilities and production capabilities or are looking for out-sourcing as a way to reduce costs and accommodate highly seasonal needs.
The company was purchased from a large, global wine concern which retained their lease, precluding the client from entering into more profitable contracts and marketing to other larger wineries due to capacity limitations. With the lease expiration, the new strategy was to pursue more lucrative revenue opportunities. Their current lender, however, was unable to provide the financing required for improvements to the property, equipment and service offerings necessary to support this growth plan.

Business Capital structured and secured an equipment loan which provided the company with the additional working capital needed to upgrade and expand their facilities and services, allowing them to take advantage of opportunities for increased revenue. The bank financing was delivered at the best cost of capital, further maximizing expectations of profitability.

Chuck Doyle, Managing Director at Business Capital said, "It was a pleasure assisting this client and being able to leverage our knowledge and relationships in the wine and food & beverage sector to deliver them the best possible cost of capital with the most intelligent structure."

For over a decade, Business Capital (BizCap) has been structuring and delivering customized solutions to hyper-growth and distressed small and middle-market companies nationwide. Committed to customer focus, BizCap implements resourceful working capital and restructuring solutions for companies in need of immediate liquidity, especially when conventional capital sources are not an option.

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