Brewery finance

Equipment finance

Making a tasty pint of beer doesn’t come cheap. Brewery equipment can be expensive and to keep on top of expanding consumer tastes, brewers must continually modernise to stay ahead of the competition. Asset finance can take the sting out of buying big-ticket plant and machinery. Buy over time and use the equipment as you pay for the equipment. The asset acts as security for the loan. In many cases, there is no need to provide extra collateral.

Commercial mortgages

Brewers who wish to buy an existing brewery or build new facilities will typically need finance for the transaction. Unlike residential home loans, where one size often fits all, commercial mortgages are tailored to the unique demands and business of the borrower. Borrow up to 90% of the LTV (loan to value – a comparison of the size of the loan against the value of the property) and repay over 1 – 30 years. The property acts as security for the mortgage. In most cases, there is no need to provide extra collateral.

Start a brewery

The UK has seen explosive growth in the number of breweries over the past five years. Despite the pandemic, there are almost twice as many breweries today as there were in 2018, and the craft beer segment is growing fastest of all – a statistic that is enticing more entrepreneurs to try their hand at making the UK’s favourite tipple. Budding brewers seeking to launch their own range of ales may get a financial boost with a startup loan – hard-to-find seed cash to get a new business off the ground. Government funds may also be available for this type of loan. 

Expansion

Development and bridging loans can make dreams to grow your brewery become a reality. Refurbish, extend, expand your current production facilities. Borrow up to 90% of the project cost. Repay over 1 – 30 years. The property acts as security. In most cases there is no need to provide extra collateral.

Franchising

Buying into a successful brewery franchise can be a good idea – you become part of a well-known brand, enjoy centralised marketing support, and have easy access to products and equipment. However, joining a major franchise group can be costly, and few franchisors offer funding to soften the financial blow. An independent franchise loan can solve this problem. Borrow anywhere from £1,000 to £5million. Repay over months or years. Additional security may be required.

Working capital

The hospitality trade can be very seasonal – with sales of beer rising and falling throughout the year as events like Christmas turbo-charge consumption. Unfortunately, erratic sales can cause cashflow headaches for brewers, as customers reduce orders, but overhead costs remain the same. Working capital loans can be used to cover everyday expenses – wages, utility bills, the cost of raw ingredients and more. Depending on the type of loan you choose, additional security may be required. 

Working capital loans for breweries:

• Small business loan – borrow from £1,000 to £500,000
• Invoice finance – release the cash tied up in your outstanding invoices
• Revolving line of credit – works like an overdraft

VAT loans

Slow paying customers can leaver brewers battling to pay their VAT bill, making them vulnerable to penalties and interest. VAT loans can be used to pay HMRC on time, avoiding penalties and allowing breweries to hold on to their available cash for longer. The lender pays HMRC direct. Repay the loan over 3,6, 9, or 12 months.