Navigating Seasonal Peaks: How Working Capital Loans Can Bolster Brewery Finances

Navigating Seasonal Peaks: How Working Capital Loans Can Bolster Brewery Finances

When the tides are high and the sales are flowing, it’s easy to forget about the forthcoming lulls. As with any business, there are seasonal ebbs and flows that impact sales and cash flow. Some breweries use strategies like working capital loans to help navigate the peaks and valleys of seasonal sales or to handle unexpected financial expenses.

Understanding Seasonal Peaks in the Brewery Business

The seasonal trends that affect craft breweries can vary from region to region depending on weather conditions, local sporting events, and holidays. Most breweries expect to see an increase in sales between Thanksgiving and New Years, as families and friends travel and gather for the holidays. Some breweries expect their top sales around local events, sporting events, or festivals. Regardless of what seasonal trends impact your business, you’ve probably felt the effect of slow seasons on your brewery. Slower months can negatively impact your sales, cash flow, and overall brewery operations.

The Financial Strain of Seasonal Downturns

Just because sales have slowed down temporarily, doesn’t mean that operational expenses and production expenses have. You are most likely still producing beer at your typical capacity and keeping all of your usual staff employed. The bills still keep coming, ingredients must be ordered, and soon it might feel like you’re running low on cash reserves. What happens now if an expensive and essential piece of equipment fails or you need to make a lump sum tax payment?

Working Capital Loans as a Seasonal Strategy

This is where working capital loans can provide quick and strategic access to funds during seasonal lulls. Working capital loans are fast and flexible, providing up to $250,000 in funds in as little as 24-48 hours. Craft breweries use these working capital loans to cover payroll costs, unexpected bills, bulk orders, equipment purchases and repairs, tax payments, and more. Brewery Finance has worked with dozens of breweries navigating these seasonal peaks and lulls and unforeseen financial circumstances. 

How to Access Working Capital Loans

Brewery Finance makes it easy to access working capital for craft breweries. Simply complete our one-page application and attach your three most recent months of bank statements. We will get back to you in 12-24 hours and can have funds in your account in as little as 1-2 business days. We understand your unique needs as a craft brewer and can work through your request faster than a typical bank. Contact Brewery Finance today to learn more and fill out your working capital application.