How to Pay Off Brewery Debt

Sipping on freshly poured craft brew on a barstool with your coworkers craft brewing can feel like the best job in the world, but come the end of the month, pouring over the financial paperwork in the back office, things can start to look a lot less shiny. Being a CFO of a craft brewing business comes with a deluge of pressure, to be monitoring debts, expenses, and liabilities, as well as unpredictable profits through wholesale accounts and tap room sales. Whether you’re a startup, established, or an expanding brewery, debt can account for a significant portion of your expenses and liabilities. Here are some tips for making that payment manageable and paying off brewery related debt.

Consolidating Brewery Related Debts & Liabilities

Like many bootstrapped businesses before, it is likely that you have accumulated lots of smaller loans for pieces of your growth throughout the years since becoming established. At the end of the month you’re making payments on half a dozen or more loans that each have different interest rates and pay off schedules. Consolidating all of your brewery related debts and liabilities into one payment can save you money on interest and streamline operations for your CFO. The experienced professionals at Brewery Finance can connect with you bankers ready to administer SBA loans to help consolidate your brewery-related debt.

Make a Plan for Escalating Payments Over 2-5+ Years

Even if your craft brewery is only able to make the minimum payments towards your debts, make a plan for escalating your payment schedule over the next 2-5+ years that corresponds with your growth plans for your brewery. For example, if you have created a growth projection that shows a 20% increase in net profit over the next 2 years, create a corresponding goal to increase payments towards your debts during this period. Otherwise, your newly found profit margin will find itself heading toward other improvements, such as equipment investments, marketing costs, etc.

Consider Hosting Special Events or Fundraisers

Many craft breweries have experienced the success of hosting special events or fundraisers to help support their own financial stability or that of an organization in their community. If this is not a strategy you have already tried leveraging, consider scheduling one or a series of events at your brewery to help drive surges of revenue to support your debt pay back goals. Events featuring live music from local musicians are especially successful in driving foot traffic and beer sales by the pint. Promoting your event will help your brewery gain additional exposure in your community and could serve as an opportunity to align yourself with other recognized regional brands and organizations. 

Work with Financial Professionals that Understand the Brewing Industry

If you feel overwhelmed or confused by your brewery’s financial liabilities, work with a professional that knows the craft brewing industry inside and out. The financial experts at Brewery Finance have worked with dozens of breweries to obtain loans, finance new brewery equipment, expansions, and more. Contact a representative of our team today to learn more about our financial service offerings for craft beverage manufacturers.