Business Capital Delivers Nearly $2MM to Wine Company
Business Capital provided a California wine company nearly $2 million of recapitalization and acquisition financing.
The multi-faceted wine company engages in purchasing, producing and distributing bulk wines to both domestic and international customers. The company actively resells bulk wine and blends, bottles and labels product for shipment.
With over 25 different labels, wine production exceeds 1 million bottles, with distribution throughout the U.S., Europe, Canada, Asia and Latin American. The company was experiencing a cash crunch primarily due to the loss of a key customer that filed bankruptcy. The company had an offer to purchase the distribution rights of a well-known wine label, but needed additional capital to do so.
Its current lender would not provide the financing to accommodate the purchase of the new bulk wine needed for process in order to allow the company to expand. Business Capital structured and secured an SBA line of credit which will serve to refinance an existing bank loan and provide the company with the additional working capital it needs to execute on purchasing a distribution agreement and further its plans for growth.