As per reports from The British Beer & Pub Association, there are over 2,500 breweries in the UK, with a 65% increase in microbreweries over the last decade. Likewise, gin distilleries have seen significant growth, with the Wine and Spirit Trade Association (WSTA) reporting a 28% increase in sales in recent years. However, the brewing and distilling industry's expansion isn't without its challenges. Equipment costs can be steep, and the industry's unique financial pressures call for innovative solutions.
Asset-based lending provided by Red Fox Finance can be the answer, giving businesses the financial support they need to not only keep up with demand but also to innovate and expand.
The brewing and distilling industry often operates on extended payment terms, leading to cash flow issues. This challenge is particularly acute in large scale breweries, microbreweries, and gin distilleries which have multiple suppliers and customers. Invoice factoring from Red Fox Finance allows businesses to receive immediate payment on their invoices, thereby improving cash flow and freeing up capital for other uses.
Red Fox Finance's asset refinancing solutions can help brewing and distilling companies release tied-up capital in their assets. For instance, an ageing brewing system can be refinanced to fund a new, more efficient setup. Similarly, a distillery could refinance their bottling line to invest in a new marketing campaign.
Brewery and distillery equipment are expensive but necessary investments. For instance, a 30-barrel brewing system, essential for large scale operations, can cost around £150,000. Smaller scale operations like microbreweries might require a 5-barrel system, still costing upwards of £25,000. Meanwhile, a new copper gin still could be over £20,000. Equipment financing from Red Fox Finance allows businesses to purchase or lease this vital equipment without the need for a large upfront payment.
Asset-based lending, in its varied forms, provides the brewing and distilling industry with flexibility and control. Businesses can choose the assets they wish to factor, refinance, or finance based on their unique needs and financial situation.
Also, asset-based lending provides quick access to capital, enabling businesses to seize opportunities, whether it's launching a new beer, investing in new distilling technology, or expanding operations to cater to an ever-growing customer base.
Red Fox Finance understands the brewing and distilling industry's nuances, making us well-placed to support businesses as they navigate these financial challenges. Our industry-focused approach ensures we provide bespoke solutions that match the unique needs of breweries and distilleries.
The growth and popularity of microbreweries and gin distilleries show no signs of slowing down. With the right financial partner, these businesses can capitalise on this industry boom. Red Fox Finance's asset-based lending solutions offer a flexible, responsive, and effective way to manage cash flow, invest in equipment, and fund growth initiatives. We're committed to supporting the brewing and distilling industry and look forward to being a part of your journey to success.
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Brew your success with our finance options grounded in your assets. Breweries keen on optimizing their cash flow can also consider the benefits of Invoice Finance to smoothen their financial processes.
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