TradeCap Partners closed a $400,000 production finance facility for a West Coast winemaker. The facility will be used to support organic growth with their largest customer.

An increased inventory position was placing a strain on cash flow when the client’s customer, a national wine and spirits retailer, contacted them about a seasonal promotional pallet program. Due to growing popularity of the brand, the new program projected to double unit volume sales for the next 6 months through year end. The retailer wanted to take first deliveries in two weeks. A referral partner introduced TradeCap and a factoring company to address the increased working capital needs.

TradeCap vetted the client’s supply chain, which included six different suppliers for labels, corks, capsules, wine, bottles and bottling co-packing. Within a week, TradeCap arranged a facility that provided cash payments to each of the suppliers to acquire components necessary for production runs. The facility accommodated 100% of the costs associated with fulfilling the orders, eliminating any impact on existing cash flow.

With the facility in place, components were immediately shipped to the bottling co-packer, allowing the client to increase production volume and deliver the first month of promotional program orders on time. TradeCap’s facility will remain in place through the entirety of the seasonal program.