Page 30 - Beverage MasterFebMarch 2021_Update

Craft Brewery
BREWERY FINANCIAL RESOLUTIONS
FOR THE NEW YEAR
A s we turn the calendar to 2021, it’s time
to make financial New Year’s resolutions
for your brewery. Financial resolutions
may include sales growth, margin improvement, or
expense reductions, to name a few.
However, during the Covid-19 pandemic your
most important resolution may be to improve cash
flow. During a crisis, the most essential asset is
cash, and access to capital. Simply put, when you
have access to capital you can stay in business and
ride out the financial turmoil.
Therefore, in the new year, resolve to build a
financing plan for your brewery so that you always
have access to capital when you need it.
In this article, we’ll review tactics and strategies to
build your brewery financing plan. We’ll cover loan
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terms, common brewery loan structures, and the
details of what a bank will need from you in order
to get funding. A complete and well-thought-out
financing plan lets you develop alternate sources
of cash and capital when emergencies happen. Like
right now.
Brewery Loan Terms and Types
One of the keys to success in business is to have a
financing plan in place before you need the money.
The financing plan may include a working capital
line of credit, equipment line of credit, and com-
mercial term loans. Each loan serves a specific pur-
pose in funding your brewery business.
Here’s a summary of each loan type:
Working capital line of credit. This is used for
short term funding needs, seasonal, or temporary
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