Daily News: June 12, 2014

BizCap Delivers $3.5MM Equipment Financing for CA Wine Co.

Business Capital structured and secured an equipment loan which provided a wine processing facility 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 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.

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.

“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,” said Chuck Doyle, Managing Director of Business Capital.