One of the hallmarks of the craft brewing movement has been the innovation of the thousands of entrepreneurs who have started new breweries. That innovation hasn’t been limited to beer alone, but also comes on the business side, where new methods of distribution, customer interaction, marketing, and more have re-energized American beer lovers.
Expanding your brewery, adding on a craft beer taproom, purchasing craft brewing equipment, and evening out cash flow can all be managed with the right type of brewery financing. Need a brewery loan, go to the bank. Right? Not so fast…. SBA loans often times do not provide the short-term influx of cash flow necessary to sustain and grow craft breweries. LVRG Funding has carved out a unique niche in the brewery world by providing capital to brewery owners the banks have left and continue to leave behind; which by the way is roughly 80% of brewery owners.
Today’s brewmaster and craft brewery owner is constantly on the lookout for growth opportunities and must move quickly to take advantage of them. What if you need a quick injection of capital to buy a craft brewery bottling machine, build out your taproom, purchase a new canning system, or open a brewhouse? An opportunity for an acquisition or expansion can arise suddenly and needs an immediate response, not to mention immediate cash. And of course, there will always be emergencies and cash flow gaps that need to be quickly managed with working capital.
That’s why revenue based financing, such as short-term business loans, cash flow loans and other forms of working capital loans are the fastest growing credit instruments among breweries throughout the country. They’re the contemporary solution for brewery owners needing quick capital to fuel or accelerate growth.
Traditional business loans through banks are often made for as long as 25 years and require mountains of documentation and financial statements. And then there’s the waiting period, for both an approval and for funding, which is typically 2-4 months. There is no denying that SBA loans offer more favorable rates and terms than alternative financing options, the issue is most brewery owners simply don't qualify for institutional financing for one reason or the other. Or, already have SBA loans in place and cannot access additional capital through their SBA lender.
So what happens if you currently have an SBA loan and need additional capital, but your bank says no? Or, if your brewery is cash flowing but you can’t qualify for SBA financing, due to cash flow & debt rations, or lack collateral? Don't sweat it, we’ve got you covered!
Revenue based financing, cash flow loans and working capital solutions from LVRG, simply makes sense. Whether you need $10,000 or $2 Million, LVRG Funding will provide financing options that's right for your brewery. Our financing options are tailored to the needs of brewery owners, and as a result, offer distinct advantages:
- They’re made for shorter terms, usually 6 to 18 months.
- They require relatively little paperwork and a simple application to start.
- The underwriting and approval process are designed to provide brewery owners with quick answers.
- Once approved, brewery owners have their funds in as little as 24 hours.
- Payments based on a fixed percentage of sales.
- Repayment terms are favorable.
- Poor credit is not a deal breaker.
- Brewery financing that doesn’t require any equity.
- Easy qualification process with no personal collateral required
Breweries have a high upfront cost, which means it may take a few years to become cash flow positive. Banks typically like to see 1.15% - 1.25% positive cash flow ratios and 2 years in business to provide loans, which negates over half the breweries in this country right now just due to the business model. We are interested in cash flow, revenue and healthy bank accounts in order to lend against, which is a perfect fit for a growing brewery. What's more, we are able to provide additional capital as you pay down the loan. Revenue based financing and small business loans from LVRG can be used for any business expense, from remodeling and expanding your brewery, purchasing brewery equipment, or launching a new marketing effort. The key here is growth and our brewery funding options are the perfect solution for brewery owners looking to take advantage of growth opportunities. LVRG Funding is the nation’s go-to source for brewery finance and we are here to help you put your stamp on the craft beer map. Call us today for more information (855) 998-5874 or click the banner below to get started!