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Brewery finance for breweries, distilleries and drinks producers
How breweries, distilleries and drinks producers fund brewhouses, canning lines, duty and VAT, seasonal stock and trade invoices, and what lenders look for.
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In short
Most breweries fund growth in layers: hire purchase or leasing for tanks, canning lines and kegs, a working capital facility to buy malt, hops and packaging and pay duty before beer is sold, and invoice finance once pubs and wholesalers are paying on 30 to 60-day terms.
Premises usually need a commercial mortgage. Lenders look closely at margins after duty and at reliance on any single customer.
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About brewery finance
Brewery finance is funding for craft and independent breweries.
Brewery finance is funding for craft and independent breweries, and the same approach works for distilleries, cideries and other drinks producers: asset finance for brewhouses, fermenters, canning and bottling lines; working capital for ingredients, packaging and duty; invoice finance for trade customers on credit terms; and commercial mortgages or bridging loans for premises. Smart Funding Solutions is a whole-of-market broker, not a lender. We approach the lenders whose appetite fits your brewery's stage, equipment and sales channels. For finance across pubs, restaurants and hotels, see our hospitality business loans hub.
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The operating cycle
Where finance fits into your brewery
Cash leaves the business at every stage before it comes back. Each stage below is a point where the right facility can carry the gap.
-
01 Win work
Orders, contracts or customers secured.
-
02 Buy in
Stock, materials and equipment paid for up front.
Asset finance → -
03 Pay people
Wages and suppliers paid on time.
Working capital → -
04 Deliver
The work is done or the goods are sold.
-
05 Get paid
Customers pay, sometimes weeks later.
Invoice finance → -
06 Tax
VAT and Corporation Tax fall due.
HMRC loans → -
07 Invest
Growth, a new site or new equipment.
Business loans →
Funding needs
Funding options for brewery businesses
Choose the need, and we’ll show you how lenders usually structure it.
Finance options for breweries
01
Asset finance for brewing equipment
Asset finance spreads the cost of brewhouses, fermentation and conditioning vessels, canning and bottling lines, kegs, cold stores and delivery vehicles over their working life. With hire purchase you own the equipment at the end; with leasing you use it for a set period and can upgrade. Because the equipment secures the agreement, lenders may need less additional security. Used equipment can often be financed, and existing equipment you own can be refinanced to release cash. Kit from established manufacturers with a resale market is generally easier to fund than bespoke or second-hand equipment with few buyers.
02
Working capital loans
Working capital loans cover day-to-day costs such as malt, hops, packaging, wages and marketing, and help you build stock before peak season. They are usually short to medium term and can be unsecured, typically with a personal guarantee.
03
Invoice finance
If you sell to pubs, wholesalers and retailers on credit, invoice finance releases cash tied up in unpaid invoices. Facilities grow as your trade sales grow, which suits breweries expanding into new accounts.
04
VAT and tax loans
A VAT or corporation tax loan spreads an HMRC bill over monthly instalments so you can pay on time without cutting into the cash needed for brewing. Paying HMRC late can lead to penalties and interest, so planning ahead matters.
05
Revolving credit and merchant cash advances
A revolving credit facility gives a limit you can draw on and repay as needed, which suits seasonal stock building. Breweries with a busy taproom or online shop taking card payments may also consider a merchant cash advance, repaid as a percentage of card sales.
06
Trade and stock finance
For bulk purchases of malt, grain, bottles, cans or labels, trade finance can pay suppliers directly while you repay over an agreed period. It can also support export orders.
07
Commercial mortgages and bridging loans
Buying a unit, building a new brewery or adding a taproom is usually funded with a commercial mortgage secured on the property. Bridging loans provide short-term, property-secured funding where you need to move quickly, for example to secure a site, with a clear plan to refinance or sell to repay.
Why breweries need specialist finance
Brewing is capital-intensive and cash flow is uneven. Equipment is expensive; ingredients, packaging and alcohol duty are paid before beer is sold; trade customers such as pubs, distributors and retailers often pay on 30 to 60-day terms; and demand peaks in summer and at Christmas. The right finance mix spreads capital costs and keeps enough working capital in the business to brew ahead of demand.
Other drinks producers face versions of the same squeeze. Distillers can have spirit maturing in cask for years before it is sold, supermarket and wholesale listings often come with longer payment terms, and a new listing may need a large production run before the first invoice is paid.
Start-up brewery finance
New breweries have no trading history, so options are narrower. Common routes include asset finance for equipment (often with a deposit), the government-backed Start Up Loans programme from the British Business Bank for eligible founders, personal investment, and equity or crowdfunding from customers and investors. A detailed business plan with realistic sales forecasts, route to market and costings, including duty, is essential.
Underwriting
What lenders look at
01
Trading history, accounts and management figures
02
Sales mix: trade accounts, retail, taproom and online
03
Gross margins after ingredients, packaging and duty, and whether alcohol duty returns and payments are up to date
04
Any reliance on a single large buyer or distributor
05
Customer concentration and debtor days, for invoice finance
06
Equipment details and supplier quotes, for asset finance; lenders are more comfortable with kit that has a resale market
07
Credit history of the business and directors
08
For start-ups and expansion, a business plan and forecasts
Funding growth
| Growth step | Finance that often fits |
|---|---|
| More tanks or a larger brewhouse | Asset finance over the equipment's working life |
| Bringing canning or bottling in-house | Asset finance, weighed against contract packing costs |
| Opening a taproom or visitor centre | Asset finance for fit-out equipment plus a term loan |
| Winning a supermarket or wholesale listing | Invoice finance and working capital for the first production run |
| Laying down spirit to mature | Longer-term working capital or stock-backed lending from specialist lenders |
If you are buying or opening pubs as part of your plan, see our page on pub and bar loans.
How the process works with us
- We start with your plans, sales channels and recent figures.
- We work out which mix of facilities fits your production cycle and customer terms.
- We approach lenders on our panel that fund breweries and food and drink producers.
- We set the offers side by side, with total costs, security and repayment profiles explained.
- The lender makes the final decision; decisions can come within a few working days once it has everything it needs.
It is free to enquire; any broker fee is disclosed separately before you proceed. To discuss your requirement, you can start an enquiry online.
FAQs
Questions clients ask
How can a distillery fund stock that is still maturing?
Maturing spirit ties up cash for years, so distillers usually combine several sources: longer-term working capital loans, investor or crowdfunding equity, and income from faster-selling products such as gin or white spirit. Some specialist lenders will lend against maturing stock, looking closely at its quantity, age, storage and likely value, so good stock records are essential.
Can brewery finance help pay alcohol duty?
Yes, a working capital loan or revolving facility can help a brewery pay alcohol duty, ingredients and packaging before beer is sold and trade customers pay. Lenders will check that duty returns and payments are up to date, because arrears with HMRC are a serious concern. Including duty in your cash flow forecast for peak periods such as summer and Christmas shows a lender how the facility will be repaid. Our working capital loans page explains how these work.
Will I need a personal guarantee for brewery finance?
Often yes for unsecured working capital loans, where lenders typically ask directors for a personal guarantee. Asset finance on brewhouses, fermenters and canning lines relies mainly on the equipment, so additional security may be lighter, although guarantees can still be requested, especially for newer breweries. Read the terms carefully and understand your personal exposure. Our guide to personal guarantees explains what you are signing up to.
Can a brewery with poor credit get finance?
It can be possible, but adverse credit narrows the choice and usually increases the cost. Asset finance, where the equipment secures the agreement, and invoice finance, which relies on the quality of trade customers, can be more accessible than unsecured loans. Lenders want to know what happened and see that current trading and duty payments are in order. Our page on bad credit business loans covers the wider options.
How long does brewery finance take to arrange?
Asset finance and unsecured working capital for a brewery can be arranged within a few working days in straightforward cases, once the lender has accounts, bank statements and any supplier quotes. Invoice finance takes longer because the lender reviews the sales ledger and customer terms, and premises finance takes longer still because of valuation and legal work. Planning ahead of peak season gives time to compare lenders.
Keep exploring
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- DiscussTell us what the funding is for.
- Explore the marketWe search 300+ lenders and compare offers.
- Compare offersWe explain the options clearly.
- Move forwardChoose the right facility for your business.
What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
- Personal broker support
- No obligation discussion
- Free to enquire