In 2007, Anthony Scotto III was carrying on a fifth generation legacy in the wine business as a wholesaler of wines in Pleasanton, California. He was earning a decent living, however, he wanted to grow his company – ADS Wines – largely known for selling one brand of wine, and branch out to sell more brands.
He did what any small business would do. He went to a local bank and got a line of credit. But the bank wouldn’t give him enough credit (or cash) to allow Mr. Scotto to really grow ADS Wines.
It was then that Mr. Scotto discovered Capital Business Credit (CBC) and factoring. CBC developed a strategy for Mr. Scotto that would provide a cash advance on his receivables, providing him with the capital he needed to grow. This way, Mr. Scotto was not confined to waiting the 30, 60 or sometimes 90 days for his customers to pay. Instead, he had the capital and credit to make quick investments that have allowed him to grow his business. As the relationship developed CBC also gave him advances against his inventory.
For example, he had an opportunity to buy several hundred thousand dollars worth of glass – which would be used to make 780,000 wine bottles – at a steep discount. Rather than disrupt his cash flow, he turned to CBC who made a real-time decision to negotiate a deal directly with the vendor and provide Mr. Scotto with the money needed to make the purchase.
Since entering into a relationship with CBC in 2007, ADS Wines has experienced triple digit growth. Today, Mr. Scotto could go back to the same local bank and get a bigger line of credit and a larger loan, but he chooses to continue to work with CBC because they have taken the time to learn his business, have the ability to make real-time decisions and have ultimately helped ADS Wines become what it is today.