The Advantages of Fixed vs. Fluctuating Loan Rates

It’s 2022 and the word of the year seems to be “inflation”! Everyone is talking about the impacts of inflation and increasing interest rates on American families and businesses. If you’re wondering how all of this is going to affect your ability to get financing as a craft brewer, we’re here to make the matter clear as rocky mountain water. Unlike many of our big-bank competitors with fluctuating loan rates, Brewery Finance loans are always a fixed rate. Plus, we can typically finance loans for brewery equipment and brewery expansions with $0 down. Here are the nuances for consideration:

Fixed Rate Brewery Finance Loans vs. Variable Rate Bank Loans

In this current economic environment, variable rate loans can look appealing when rates are low. A “variable rate” loan means that the bank offers a low rate at the start of the loan, but has the ability to increase the interest rate in the future. On a $200K loan for craft brewing equipment or a brewery expansion, if your interest rate increases just +1% it can mean an extra $2K a month in expenses. Brewery Finance offers fixed rate loans, always, with no risk of your interest rate increasing during the lifespan of the loan. 

Reliable Financial Forecasting

The interest rate you secure at the outset of your loan with Brewery Finance is the percentage you can expect to pay for the entire life of the loan, making it easier to prepare financial projections, and make growth and investment decisions. A fixed interest rate loan is a reliable line item to project onto your month expense budget. By working with Brewery Finance you will be able to forecast exactly how much new projects will cost your business in the months to follow. 

No Security Deposit Required

We know in the craft brewing industry it can be difficult to scrape together the capital needed to make big purchases in a pinch. We like to make it easy for our partners to get the funding they need to place equipment orders and get started on brewhouse and taproom expansions. We are able to process the majority of our loans with $0 down. These means no extra lead time before you finally get to place the order for that automated canning line expansion you’ve been dreaming of.

Easy, One-Page Financing Application

How do you take advantage of all this yummy goodness for your craft brewing business? We have a simple, one-page financing application that doesn’t require you to dig through months and years worth of bank statements. Because we work specifically with craft brewers we understand the details of your request and can process applications quickly, typically in 24-48 hours. Big banks can take weeks researching your application before they make a decision. Keep business moving forward by partnering with Brewery Finance for all of your capital needs.