Business Line of Credit / Breweries
Business Line of Credit for Breweries
The money is out the door 6 weeks before the beer is sellable, and 30 days further out when a distributor is the buyer.
How does business line of credit work for breweries?
A brewery line of credit is revolving capital you draw for grain, cans, hops contracts, and seasonal releases, then repay as the beer sells. It fits the 30 day lag between shipping a wholesale order and getting paid better than a fixed monthly term payment.
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
What this covers
- /Draw for grain, cans, hops contracts, and packaging, then repay as the beer sells through.
- /Sizing follows deposit history and open wholesale receivables rather than a single month of sales.
- /Interest accrues only on the drawn balance, so an unused line costs nothing to hold.
- /Renewals and increases are common once 6 to 12 months of clean usage exist.
- /A line pairs with equipment financing so the tank purchase does not consume operating cash.
| Detail | |
|---|---|
| Typical amount | 10,000 to 250,000 |
| Term | Revolving, reviewed periodically |
| Time to funding | 2 to 7 business days |
| Documents | Application, bank statements |
| Cost structure | Interest on the drawn balance only |
Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval. See source and method.
What it looks like in practice
A self distributing brewery draws 40,000 each spring for can and grain buys and repays it out of the summer season.
A taproom holds a 75,000 line unused through the winter and draws against a large festival contract in one week.
Other financing for breweries
Questions operators ask
How large a line can a brewery qualify for?
Sizing follows deposits and receivables. Lines from 25,000 to 250,000 are common depending on volume and time in business.
Does a brewery need wholesale accounts to qualify?
No. Taproom card volume supports a line on its own. Wholesale receivables usually raise the amount available.
How fast can a line be put in place?
Most lines are decisioned within 1 to 3 business days on bank statements, with the first draw available shortly after.
Can a line be used for a tank purchase?
It can, but equipment financing usually costs less over the life of the asset and leaves the line open for inventory.
What happens if the line goes unused?
Nothing is owed on an undrawn balance under most programs. Confirm any maintenance terms with the specific lender.