Utilizing a Factoring Company for Growth in the Wines, Spirits and Beer Industry

by Chris Curtin Entrepreneurs engaged in the wines, spirits and beer industries often find it very difficult to finance their working capital needs. The reason is the time lag between the production, importing, distributing or selling of the alcoholic beverages, and the time when they get paid by their customers.rnWhether you are importing wines from Chile; distributing beverages to big box stores, specialty stores or wholesalers; producing wines in California or Washington State; or brewing beer in microbreweries in Massachusetts, New York or anywhere in between, a shortage of working capital can slow your business down, reduce annual sales, and thus overall business profitability. Get the Capital You Need as Demand Rises Whatever your end of the industry, your business should not have to be slowed or your sales reduced because of inadequate cash flow. That’s especially true when the global demand for alcoholic beverages is forecast to be on the rise in 2013 and beyond, according to a recent analysis from Moody’s Investor’s Service. Moody’s raised the outlook for the industry to “positive” from “stable,” saying that commodity cost pressures in the industry are abating, and that the demand is growing, particularly in emerging markets.rnJust observe what’s happening in your area — how demand for wines, spirits and beer is rising. You don’t want to lose out simply because of a shortage of working capital.rnTo help maintain and grow your business a factoring company can be the funding solution. You can use funding programs such as invoice factoring to obtain cash now without waiting the typical 60+ days until your customer pays their invoice. You can use purchase order financing to obtain the goods and supplies you need. Alternatively, you can use a vendor guarantee from a high-quality finance company to obtain needed supplies. Factoring Companies Understand Your Business and Can Help All aspects of the wines, spirits and beer businesses are highly competitive. When you’re seeking to grow your business, there is no time to lose with concerns about being underfinanced. A qualified alternative financing and asset-based lending firm can provide for all of your funding needs.rnThe right factor company understands financing for beer, wine and spirits industry. And they understand the complexities and differences in state-by-state regulatory requirements, which can often delay or prevent new business opportunities if they are not properly followed.rnAs the demand for wines, spirits and beer heats up going forward, as anticipated, you will be glad that you have a service-oriented financing firm at your side helping you to meet your current needs and expand your business to the next level.