Brewery finance

Through bad times and good times, there’s one thing you can be sure of – the UK still loves a glass of beer.

Despite significant drops in production and consumption in the first year of the pandemic, UK beer sales rebounded strongly in 2021 and are forecast to grow by more than 13% per year in 2023-25. However, even as sales rise, costs are rising too, leaving many UK brewers struggling to modernise their facilities, expand product lines, and pay ballooning overhead. Fortunately, this is where brewery finance can come to the rescue: From commercial mortgages to startup loans and working capital finance, brewery loans are available to solve every brewer’s need. 

Don’t let your beermaking ambitions fall flat. Read on to find the best loan for your brewery.

What types of finance are available for breweries?

No matter if you’re seeking to expand production, pay taxes, start a brewery, or buy property, there’s a brewery loan for you.

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:

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.

How to find the right funding for your brewery

Brewery financing is a niche funding sector, with differing rules of application. Brewers seeking this type of finance may find themselves forever searching and making applications to lender after lender. The delays this can create could cause you to lose business and leave your brewery vulnerable to the competition. Instead, working with a broker, who can access brewery loans and mortgages from a wide range of lenders is a better way to go. No more cold calls and endless demands for information. Even if you’ve been turned down elsewhere or have bad credit, simply tell us what you need and leave the rest to us. 

Get started with Swoop

Don’t let financial issues call last orders on your brewery. Register with Swoop to find the best rates, the best terms and the best brewery loans and mortgages. 

Testimonials

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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