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Grant Burge Wines & Ge Capital / Understanding the complexity, unlocking the borrowing power
- Published_at:2013-06-19
- Category:Education
- Channel:GEAustralia
- tags:
- description: SUBSCRIBE to GE Australia YouTube: http://bit.ly/GEAustraliaYouTube Background Grant Burge Wines is a fifth generation premium winemaker whose family has been in the Barossa Valley since the 1850s. The business now exports to 35 countries with an annual turnover of $50 million. For over 11 years, GE Capital has partnered with Grant Burge Wines, applying its industry knowledge to unlock growth opportunities. Challenge Winemaking is capital intensive with large expenditures required across the vineyard, production process and storage. Product is typically matured for over two years, creating a lag in the revenue cycle. Like any agricultural business, winemaking is also prone to seasonal risks. In 2007, Grant Burge Wines suffered a 40% drop in their vintage yield, placing them in a difficult position to meet debtors and inventory. Against this background of ongoing capital intensity and industry change, Grant Burge Wines looked to GE Capital for a financial solution that could unlock equity and facilitate new growth. Solution GE Capital took time to understand the complexity of the entire winemaking process, from vine to table. Key to this understanding were independent valuations of the business inventory and wider asset pool carried out by industry experts. By recognising the true value of the assets, GE Capital unlocked significant accounts receivable and inventory-secured funding. As Grant Burge explains "Right from day one GE Capital have understood manufacturing issues and what's required to finance those businesses". GE Capital also recognised the long-term business vision of Grant Burge Wines, making lending decisions based on business opportunity, not risk adversity. This included building flexibility into the funding model to accommodate naturally slow sales periods during the annual cycle. Through the Asset Based Finance solution, GE Capital supported multiple growth opportunities, funding warehouse development to reduce storage costs and the creation of a sales-force and new distribution business. More than just finance, GE Capital provided open dialogue with senior people, unlocking global experience in manufacturing to offer solutions that made commercial sense for Grant Burge Wines. It's a business partnership best summarised by Grant himself "Our relationship with GE Capital has been fantastic. Over 11 years our facility has doubled but our business in that time has quadrupled". Connect with GE Capital Australia Online: Visit GE Capital Australia's Website: http://www.gecapital.com.au/ Follow GE Capital Australia on Twitter: https://twitter.com/GECapitalAus Join the GE Capital Mid-Market Hub Australia on LinkedIn: http://bit.ly/MidMarketHubAustralia
| ranked in date | views | likes | Comments | ranked in country (#position) |
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| 2013-07-05 | 2,663 | 9 | 3 |
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