Vintage Wine Stock Finance for a Fine Wine Merchant in London
£650,000 · 24 months · 5.5% fixed. A fine wine merchant in London had the opportunity to purchase a significant parcel of aged Bordeaux from a private collector - wines that rarely come to market and represented exceptional value.
The Client
Fine wine merchant in London
The Challenge
A fine wine merchant in London had the opportunity to purchase a significant parcel of aged Bordeaux from a private collector - wines that rarely come to market and represented exceptional value. The merchant had buyers lined up for approximately 60% of the parcel but needed to fund the full purchase price upfront. The wines themselves were the primary asset.
Our Solution
Doulton arranged specialist stock finance secured against the wine inventory, stored in a Bonded Warehouse under a Warehouse Receipt. The lender was comfortable with fine wine as an asset given the storage conditions, insurance, and the merchant's established buyer relationships. The advance was 65% of the independent valuation.
The Outcome
Parcel purchased in full. The reserved 60% sold within three months at a margin of 28%. The remaining 40% was held as cellar stock for sale at higher prices over the following eighteen months, outperforming the initial valuation. Key highlights: Fine wine accepted as primary security - specialist lender; Bonded Warehouse Receipt used as clean security structure; Reserved 60% sold within 3 months at 28% margin.