Two businesses under one roof
A brewery is a manufacturer and a bar. California has a long list of breweries, both current and defunct, from microbreweries to industrial-scale producers, and brewing companies range widely in volume and variety. Long Beach, with a population of 466,742 and a waterfront known for attractions like the Queen Mary and the Aquarium of the Pacific, has a base of residents and visitors for a taproom.
The two halves of the business have opposite cash behavior. The taproom collects money the same day. Packaged and draft sales to bars, restaurants and stores are paid weeks later, and the brewery has already paid for the grain, hops, yeast, kegs and cans.
The cost stack for a batch
| Item | When you pay | When it comes back |
|---|---|---|
| Grain, hops, yeast | At purchase | After fermentation and packaging, weeks later |
| Cans, kegs, labels, cases | At purchase, often in minimum volumes | When the product is sold through |
| Labor | Weekly | Daily at the taproom; on terms from distribution |
| Excise and sales taxes | On filing dates | Not recoverable |
| Rent and utilities | Monthly | Spread across both channels |
Capacity is the expensive decision
Most breweries reach a point where demand outruns a tank or a canning line. Adding a fermenter, a bigger brewhouse or a packaging line takes real money, and it also takes a few months to turn into more sales. For illustration only: adding two fermenters and a used canning line for $85,000 might raise output, but the first payback from added cases arrives well after the equipment payment starts. These figures are an example and not our terms.
The question is whether the cash gap between purchase and payback can be covered without cutting into payroll and rent. See equipment financing for that side.
Distribution adds a delay of its own
When a distributor takes a pallet, the brewery usually invoices and waits. Some retailers pay faster than others, and some ask for promotional discounts that reduce the return on the sale. A brewery with a strong taproom is cushioned by daily deposits, but one that depends on distribution will feel the lag harder.
If your taproom revenue is seasonal or tied to events, the statements will show that. A single line about it in the application gives context.
Taproom events and the cost of keeping the room full
A taproom that hosts trivia nights, food trucks or private parties spends on staff and sometimes on entertainment before the crowd arrives. Those events build a base of regulars and push sales of high-margin pints, but they also add labor costs that show up in the same week. A brewery with a strong calendar of events in summer may need to carry a quieter winter, while the tanks keep making payments.
Applying
We fund from $25,000 to $5,000,000, with funding in as little as 24 hours once the file is complete. A FICO score of 500 or higher is considered, no tax returns are required, and we ask for about three months of business bank statements. The application takes around five minutes with a soft credit pull, and sole proprietors can apply. For operating gaps, see working capital. Start here.