Enhancing Brewery Liquidity with Working Capital Solutions

Even if you’re operating a profitable brewery, sometimes there are invoice demands that exceed the current liquidity of your business. Whether that’s an equipment purchase, a bulk ingredient purchase, or payroll and tax liability payments, these expenses are essential to keeping your brewery operating and staffed. Many craft breweries are enhancing their financial strategy by leveraging working capital loans to cover these expenses. These short-term loans can cover between $5,000 and $250,000 in operating expenses.

The Crucial Role of Cash Flow in Brewery Operations

For any business owner, it’s much easier to look at your annual profit and loss statement than to conduct a thorough cash flow analysis. As long as your brewery is profitable at the end of the year, why dive into the minutia? Growing breweries will quickly learn the value of understanding cash flow for sustaining day-to-day operations, covering inventory expenses, payroll, and equipment maintenance. Nothing drives this message home like realizing your brewery has to pay for an expense that you don’t have the cash liquidity to cover. 

Identifying Cash Flow Challenges in Craft Breweries

How do you identify the cash flow challenges that your brewery will face? If you feel like you are continuously struggling with liquidity in your craft brewery business, it’s time to try to hone in on the patterns. Try these pro tips to identifying your cash flow challenges:

  • Use your accounting software to produce a cash flow report to evaluate trends from the last 1-3 years. Look for months with negative net profitability. Do these trends reoccur year after year?
  • Use an online template to conduct a cash flow analysis for your business. This will require income and expense projections to help you foresee months with reduced liquidity.
  • Make a calendar with your foreseeable payroll and tax expenses so you’re aware in advance of impacts on your bottom line. Employee expenses can be a challenge for breweries to handle in the off-seasons.
  • Use your past order history to create a predictable schedule for upcoming ingredient orders. The payments terms for bulk ingredients can put a huge strain on breweries trying to keep up with demand and conduct continuous product innovation.

The Working Capital Solution

What is Working Capital and how does it help breweries dealing with liquidity challenges? Working Capital loans are short-term loans, offered in a quick timeframe to address the immediate financial needs of a business. Brewery Finance specializes in offering these loans to craft brewing businesses as a strategic solution to cash flow challenges. Leveraging Working Capital loans can improve inventory management, allow you to negotiate more favorable supplier terms, and ensure year-round staff stability. Access between $5,000-$250,000 in capital within 48 hours of submitting your application through Brewery Finance.

Building Long-Term Financial Resilience

The strategic use of Working Capital can contribute to the long-term financial resilience of your growing craft brewery. Start today by reaching out to Brewery Finance. We understand the nuances of your unique needs as a craft brewery and reply faster than most commercial banks. The application for a Working Capital loan only takes a few minutes and doesn’t require an exhaustive financial history. Enhance your liquidity with a Working Capital solution from Brewery Finance.