Cranberry business receives $22.6 million asset based credit facility
The credit facility to the Carver-based cranberry processor includes a $15 million working capital line of credit, a $2.16 million equipment term loan and a $5.6 million mortgage loan.
"Decas ... has been trying to deal with all the changes going on in the cranberry industry, including oversupply and downward pressure on price. Their role as a processor was as a wholesale ingredients supplier. They've tried to move away from the industrial segment, which is much more price sensitive," said Carol A. Hamilton, first vice president and asset-based lending new business officer. "That was important for us, to understand the business and keep that credit support high."
Hamilton said the cranberry business has its own quirks and intricacies, even compared with other agricultural products. For one thing, it's not a commodity like blueberries or coffee. And unlike many other agribusinesses, a cranberry processor has to commit to buy the entire crop from the grower, and Decas could buy from as many as 150 growers in one season.
"The nature of that payment schedule for that grower is unique compared to most other things," she said. "That's where it becomes really important how you lend the money."
It helps, too, that Hamilton is familiar with the business; she's known Decas Cranberry as a client since about 1998, when she was at another bank, and when she moved to Rockland Trust, so did the relationship.
"It's great working with someone you've known for a long time. That makes it seem easy," she said. "It was a great fit for the bank, and we're both pleased."
Ever one to look out for her client, Hamilton also added that Ocean Spray is no match for Decas' cranberries.
Source: bankerandtradesman.com
