4 Options for Funding Your Brewery Business When You Have Low Credit

Starting and growing a brewery business is no easy task - especially when you have a weak credit score. 

That’s because even small breweries cost around $250,000 to maintain, making it difficult to fund a brewery business without having a strong line of credit to rely on. 

Fortunately, there are other ways to secure funding for a brewery business, even with low credit - here’s a look at 4 of them;

Pay Off High-Interest Credit Card Debts

The amount of credit card debt you owe is directly correlated to your credit score - hence, if you currently have a low credit score, you need to pay off your high-interest credit card debts.

Doing so will allow you to raise your credit score, while also reducing the amount of money you have to repay in the form of interest.

Of course, paying off high-interest credit card debts is easier said than done, but luckily, you can get a credit card consolidation loan to pay it off.

With a higher credit score, you’ll be able to get a decent line of credit to fund your brewery business.

Get Personal Loans From Friends And Family

One of the best ways to fund expensive projects and business ventures is to get loans from your friends and family.

Personal loans from people you have good relationships with typically don’t come with interest rates - plus they tend to have flexible repayment terms, especially if you’re looking to get the loan from your people who are keen on seeing you succeed such as your parents.

Hence, personal loans are a great way to fund your brewery business if you have friends or family members who make enough money, or have enough saved up to give you a loan.

Crowdfunding

Crowdfunding is one of the best ways to raise money for a business if you’d rather not rely on credit or personal loans.

It involves collecting small amounts of money from a large number of individuals to finance a business idea or venture.

Crowdfunding is easier said than done, though, because in order to attract the interest of a large number of individuals you need to put out some sort of marketing campaign with enough reach to garner lots of attention.

One great thing about crowdfunding is you don’t necessarily need to relinquish equity of your brewery to the individuals who provide you with funding - that’s because a lot of people who donate money to crowdfunding campaigns do so with altruistic intentions.

That being said, when you launch a crowdfunding campaign, it’s important that you clearly state whether or not you’re looking for altruistic donations or actual investors who will go on to own equity of your brewery.

Bootstrapping With Side Income

One great but difficult option for funding your brewery business revolves around bootstrapping the entire business.

This means using your own personal capital to build and grow the business from scratch.

In order to successfully bootstrap your brewery business, you need to have a healthy chunk of savings and consistent cash flow from some other venture or job.

If you don’t have external cash flow, then it makes sense to get a job or start some sort of cash flow heavy business just so you’ll have enough money coming in on a monthly basis to cover operational costs of running a brewery business.

Like we said earlier, though, this is a difficult option and you should only utilize it if you have a healthy chunk of savings or a stock portfolio you could sell at any time and consistent cash flow.