BusinessCash announces an increase in accounts receivable factoring and purchase order financing services for their wine industry import and export clients in from 2015 to 2017.
The wine importers and exporters have expressed an increased need for working capital because of product demand growth and the time lag between the production, distribution and final payment by their customers. Wine importers and exporters are pointing to premium wine brand demand as the main reason for the increase.
“People are trading up. They’re drinking better quality wine and prepared to pay more” said Xavier de Eizaguirre, chairman of international wine and spirits exhibition Vinexpo.
de Eizaguirre continued, “And one factor that will help the U.S. now is that the dollar is strengthening. That will make some of the (more expensive imported) wines more accessible.”
U.S. table wine exports to Canada alone were US$1bn in sales last year, according to a report from Wine Institute of California this month. “California wines continue to outperform its competition in all the major markets across Canada,” according to Rick Slomka, Wine Institute Trade Director for Canada. “Canadian consumers have confidence in the quality and value offered from California and our wines are successful in all price segments. Recent and previous in-store promotions in the major markets have created a solid base and strong momentum for California wines.”
BusinessCash’s National Sales Manager, Chris Curtin says, “Demand for high-end wines is rising. Our wine clients don’t want to lose out because of logistical challenges or a shortage of working capital. No matter where you are in the supply chain, your business should not be slowed or your sales reduced because of inadequate working capital. In addition, we see even further growth in US wine sales in 2018.”