7 Quick Ways to Increase Cash Flow at Your Brewery or Distillery
Craft beverage producers are feeling the squeeze of rising production costs, supply chain challenges, and seasonal revenue swings. Instead of relying on more debt or delaying growth, these targeted strategies can help you boost working capital and keep your business running smoothly:
1. Lower Your Current Interest Rate
Refinancing existing brewery or distillery loans to secure a better rate can significantly reduce your monthly payments. If your credit profile or business performance has improved, now may be the right time to revisit your financing terms.
2. Lengthen the Term of Your Debt
Extending your loan repayment term can lower monthly obligations and free up cash to invest in production, staffing, or distribution. This kind of flexibility is especially helpful in slower months or during expansion.
3. Pay Off Seller Notes from a Previous Acquisition
If you acquired your brewery or distillery using seller financing, those notes may come with short terms and high rates. Refinancing them into a longer-term, lower-interest loan can ease your cash flow burden.
4. Refinance Your SBA Loan with a New Conventional or SBA Loan
If you’re carrying an SBA 7(a) loan, refinancing into a new SBA or conventional loan may offer better rates and terms—reducing monthly payments and giving you more breathing room in your operating budget.
5. Convert an SBA 7(a) Loan Into an SBA 504 Loan
If your existing loan was used to purchase real estate or brewing/distilling equipment, switching to an SBA 504 loan could bring major benefits. This program offers long-term, fixed-rate financing—helping improve long-term cash flow.
6. Expand to a Second Location or Taproom
If demand is strong, consider using strategic financing to open a second location, satellite tasting room, or new distribution channel. This type of growth can help boost cash flow, brand awareness, and market share.
7. Add New Revenue Streams
Diversifying your offerings is a powerful way to generate more consistent income. Some ideas include:
- Launching a canning or bottling operation
- Introducing seasonal releases or exclusive batches
- Offering private events or brewery/distillery tours
- Selling branded merchandise or gift packs
These add-ons not only grow revenue but also deepen customer engagement and brand loyalty.
If you know another craft beverage business owner who could benefit from these strategies, feel free to reach out. We also offer a referral partnership program you’ll want to take advantage of!