Vannee Meat & Poultry Ltd. is a meat wholesale company serving the food industry in British Columbia and has been in business since 2007. Managed by Miu Lan (Ruby) Yeung, the company has 15 employees and is a supplier for the metro Vancouver area, servicing restaurants from Richmond to Vancouver to Surrey.
Vannee Meat & Poultry had been renting its current production plant, which is a good location for the business. In 2015, the landlord wanted to sell the property, and the owners of the company decided to purchase the plant in order to avoid future rent increases and ensure competitors didn’t step in to buy the well-equipped facility. Furthermore, the firm recognized that renovating at another location would incur high costs.
To meet the company’s needs, BDC provided commercial real estate financing to purchase the property, with flexible payments terms that gave the company breathing room. As well, the bank financed a technology upgrade, provided working capital to purchase inventory and financed new equipment. Each of these loans featured flexible terms and conditions that enabled the company to keep vital cash in the business.
As a result of BDC’s financing, Vannee Meat & Poultry has increased its sales by 15% and anticipates further growth. The company now owns its production plant, which is an excellent investment and sizeable asset for the firm. In addition, the shareholders have been able to improve communications with a technology upgrade. An injection of working capital has helped the firm purchase inventory in larger volumes at a discount price. By purchasing semi-automated equipment, the firm is now able to complete jobs faster, improve productivity and save on labour costs. “With the support of BDC, we are more competitive. At the same time, we can focus on increasing sales and developing potential markets,” says Yeung.