Benefits of Factoring for Vineyard and Winery Financing
Speeding up cash flow to reinvest in growth more quickly is the most common reason wine wholesalers and wineries use invoice factoring. The faster a vintner or winery can replenish inventory or expand production, the faster they can grow.
Expediting cash flow is only one of the benefits for wineries that factor invoices instead of waiting on customer payments. Speeding up cash flow using wineries factoring can help your organization by:
- Enabling you to extend generous terms to buyers as a competitive advantage, without constricting cash flow
- Making faster investments in growth initiatives
- Improving your ability to meet payroll and operational expenses
- Freeing up working capital to take advantage of supplier discounts
- Providing the working capital needed to expand production in order to add new customers or fulfill bigger customer orders
How Vineyard and Winery Factoring Expedites Cash Flow
Wineries factoring (also known as receivables factoring or invoice factoring) is a cash flow management tool that speeds up cash flow for vintners, wineries and other wholesale wine manufacturers and distributors.
When a winery or vintner factors invoices, they can access up to 93% (or more) of the face value of an invoice within 1-2 days of when the invoice is created for a small fee, called a factoring fee, which could be as low as 5% of the invoice amount – or even lower.
Invoice factoring is commonly used by organizations that manufacture, produce or distribute goods that are sold to re-sellers on payments terms. Factoring enables wineries, vintners and wine distributors to reinvest the working capital that might otherwise be tied up for weeks – or months – in customer invoices immediately, without waiting for buyers to pay.
Get a free, no-obligation quote for invoice factoring – even if you’re already factoring invoices, we would be happy to provide you with a free quote to compare against your current agreement.