Financial Group

Food & Beverage Industry

ExpoCredit is helping this company to improve their accounts receivable turnover

Deal Summary

Product
Factoring
Funding Line Amount
500,000
Company Type
Wine & Spirits
Industry Type
Food & Beverage
Location
Mexico
This company was established to become the leading wine distributor in Mexico, and it has succeeded. It began operations in 2013 and currently distributes more than 200 wine labels from around the world. The company’s growth plan included a team of sommeliers that could deliver unique strategies by brand. Over the years, it has become an esteemed leader in Mexico’s wine industry, which led to exclusive distribution from some of the most prestigious wineries worldwide. Our client is currently one of the biggest wine distributors to self-service chains, wholesale chains, and department stores around Mexico, with prominent multinational clients like Walmart and Costco.

Challenge

In addition to being a distributor, the company expanded to become an importer as well. It began to manage the merchandising of major European wine brands in Mexico. The number of days to receive payment increased considerably. They had to add to the 60 days payment terms of their biggest clients. As a result, the company experienced a cash flow shortage. Moreover, the company’s accounts receivable had a very slow turnover — around 200 days — during 2018 and 2019.

Solution

The company has been growing at an accelerated rate since 2018, due to the expansion of its client portfolio and to greater demand from its main clients. During 2017 and 2018 alone, the company has experienced a growth rate of more than 70%. Furthermore, the company has an interesting client portfolio made up of large retailers with a vast repayment capacity. After careful consideration, ExpoCredit decided to approve this line for USD 500,000. To help the company improve their accounts receivable turnover, ExpoCredit is buying the invoices once they appear approved for payment in the respective portals and when we have the proof of delivery of the products.
Factoring - Wine & Spirits