How to Start a Brewery with No Money: Where to Find Financing

Brewery sounds like a tasty business because everyone loves to enjoy sipping their liquors. Well, the world of liquor has so many options and types. People even can infuse their personality or their identity in their liquor.

The brewery business will involve creativity, patients, and skills to produce the best liquor. Although it sounds interesting, you must understand that this business is not easy to start.

Your biggest question at the beginning might be about how to start a brewery with no money. Yes, the brewery business needs a larger amount of money, indeed.

 

How to Start a Brewery with No Money

1.) Commercial Loans

Where can you find the financing for starting your brewery business? You can always consider finding your business financing from commercial loans.

It is super easy to find commercial lenders who will offer you many kinds of loan shapes and sizes. When you want to get commercial loans, you can go to commercial banks, mutual fund companies, private lending institutions, or other financial groups.

However, you have to remember that when you take loans from commercial lenders, you might need hard collateral such as your property.

When you get the commercial loans, the lender will not tell you what to do with your business. Unfortunately, besides the collateral issues, you also have to deal with expensive monthly cash payments.

 

3.) Government Loans or Grants

Of course, you cannot depend on commercial loans alone to finance your brewery business. You can also consider applying for government loans or grants.

This method is getting more and more popular recently because of a certain reason. People love this type of loan because the loan repayment period and term are friendlier than the commercial loans.

The application requirements are simpler, as well. Sometimes you will not find any credit history check necessary. You can also find the fixed as well as subsidized interest rates.

There are more other benefits that cannot be provided by commercial lenders. However, with the fact that this type of loan is super popular, it means that the competition is very high. As a result, the selection process will be much more demanding.

 

4.) Crowdfunding

Even in the world of financing, we can always find a new method that can be tried when we want to start a business, including the brewery business.

Of course, crowdfunding must be considered as the new method used in the financing world. It is not as old as the previous financing options, but the amount of money involved has reached billions of dollars.

When you want to start crowdfunding for your business, you can do it through an online portal. The amount of money that can be used for financing a project can be unlimited.

Is it possible to use this method for financing your brewery business? Yes, of course, you can use it, but you need to consider the benefits and drawbacks of crowdfunding for financing your brewery business.

By using crowdfunding, you will not only get quick access to your capital, but you can also get access to advertising and PR for the business.

You can also validate the concept of your brewery business at the same time. However, before you can grab those benefits, you might have to face the struggle with the crowdfunding campaign for meeting your goals.

 

5.) Equipment Leasing

Well, you might have a question about how to start a brewery with no money because you realize that you need a lot of equipment to start making your liquor on a business scale.

The brewery equipment is pretty expensive as well. It can be a burden when you have to buy them all at once. It can be dilemmatic since you have just started your business, but it is impossible to do it without the equipment.

Fortunately, you have an option called equipment leasing. You do not have to buy the equipment because the equipment owner allows you to use the equipment if you pay for periodic lease payments.

Equipment leasing is not strange at all because various kinds of companies of all sizes lease some of their equipment. You can reduce your capital need with equipment leasing.

You can also get the tax advantage since you do not buy the equipment. However, you might find that equipment leasing in a long run can cost more than buying the equipment.

You also have to deal with a complicated agreement for equipment financing.

 

6.) Accounts Receivable Financing

Next, to finance your brewery business, you might also want to consider accounts receivable financing. Why should you consider this financing method?

You can free up the working capital that can be found in your account receivable with this financing type.

This is a method you can use when you want to get a quick cash injection for your business. The company can also focus on productive activities since you do not have to think about the resources.

But, you have to be ready with a higher interest than commercial loans.

 

7.) Borrowing from Friends and Families

Do you think that is all of the financing methods you can consider for starting your brewery business? Do not forget that you can always use self-funding.

You can also borrow money from your family members and friends to raise money for your business.

This method is convenient, especially if you cannot get the financing from other methods.

This type of loan will be more flexible in repayment terms, fees, and interest. However, it can risk your personal life as well.

That is why even when you get the money from your family or friends, you have to put an arrangement contract.

 

8.) Private Investors

Last but not least, private investors can give you the answer to your question about how to start a brewery with no money. You can find many private investors who want to earn a return by investing in your brewery business.

This type of investor is prepared to lose money, but at the same time, expect a bigger share of business profit and even part of the business.

 

Verdict

Even when you do not have money, as long as you have an excellent business plan, you can always find financing options for building your brewery business.